INDUSTRIAL RELATIONS: ROLE OF LABOR UNIONS IN ...

306
INDUSTRIAL RELATIONS: ROLE OF LABOR UNIONS IN ORGANIZATIONAL CLIMATE IN PAKISTAN’S PERSPECTIVE By Muhammad Tariq Khan NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD August, 2008

Transcript of INDUSTRIAL RELATIONS: ROLE OF LABOR UNIONS IN ...

INDUSTRIAL RELATIONS ROLE OF LABOR UNIONS IN ORGANIZATIONAL CLIMATE

IN PAKISTANrsquoS PERSPECTIVE

By

Muhammad Tariq Khan

NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD

August 2008

Industrial Relations Role of Labor Unions in Organizational

Climate in Pakistanrsquos Perspective

By

Muhammad Tariq Khan

A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF

DOCTOR OF PHILOSOPHY

In

Human Resource Development

To

FACULTY OF ADVANCED INTEGRATED STUDIES AND RESEARCH (MSHRD)

NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD

August 2008

copy Muhammad Tariq Khan 2008

ii

DISSERTATION AND DEFENSE APPROVAL FORM

The undersigned certify that they have read the following dissertation examined the defense are satisfied with the overall exam performance and recommend the thesis to the Faculty of Advanced Integrated Studies amp Research for acceptance Dissertation Title Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective Submitted By Muhammad Tariq Khan Registration 135-PhDHRD2003 Doctor of Philosophy Human Resource Development Dr Zafar Mueen Nasir Name of Research Supervisor Signature of Research Supervisor Prof Dr Shazra Munnawar ______________________________ Name of Dean (FAISampR) Signature of Dean (FAISampR) Prof Dr Aziz Ahmad Khan ______________________________ Name of Rector Signature of Rector

__________________ Date

iii

CANDIDATE DECLARATION FORM I Muhammad Tariq Khan_____________________________________________

Son of Mr Chanan Khan

Registration No 135-PhDHRD2003

Discipline Human Resource Development

Candidate of Doctor of Philosophy at the National University of Modern Languages do hereby declare that Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective submitted by me in partial fulfillment of PhD degree in disciplinedepartment Faculty of Advanced Integrated Studies amp Research is my original work and has not been submitted or published earlier I also solemnly declare that it shall not in future be submitted by me for obtaining any other degree from this or any other university or institution I also understand that if evidence of plagiarism is found in my dissertation at any stage even after the award of a degree the work may be cancelled and the degree revoked August 11 2008 ____________________ Date Signature

Muhammad Tariq Khan Name

iv

ABSTRACT

Dissertation Title Industrial Relations Role of Labor Unions in Organizational

Climate in Pakistans Perspective

Purpose of this research was to explore the aspects of HRD beyond education and

training and to explore the role of labor unions in HRD by looking at the improvement in

productivity and harmony at work place due to them For this purpose survey

questionnaires on five point Likert scale ranging from very unsatisfied to very satisfied

were designed and pre-tested The study was carried out by taking a sample of 10

unionized organizations In these organizations 525 unionized workers 90 temporary

non-unionized workers and employers were interviewed to collect information on role of

labor unions in securing benefits for workers and motivating them for higher productivity

and peace at work place Performance of unions was estimated in two aspects One

aspect was their success in securing benefits for workers and other was in protecting the

interest of employers The success of unionsrsquo in exerting efforts for securing benefits for

workers was measured by satisfaction of workers which was dependent on15 variables

ie wage rise fringe benefits job security time decrease health facilities children

education over time payment working conditions leaves increase post retirement

benefits recreation facilities training opportunities decrease of wage differences

informing workers about their rights and workersrsquo education The success of unionsrsquo in

exerting efforts for protecting employersrsquo interest was measured by satisfaction of

employers which was dependent on two variables ie productivity increase and work

place harmony The results of the study show that unions proved successful in securing

benefits for workers and protecting the interest of employers though performance of

unions needs to be improved by exerting more efforts

v

TABLE OF CONTENTS

Page Inner title page i

Dissertation and Defense approval form ii

Candidate Declaration Form iii

Abstract iv

Table of Contents v

List of Figure xi

List of Tables xiii

List of Acronyms xvi

Acknowledgements xix

1 INTRODUCTION 1

11 BACKGROUND OF STUDY OF HUMAN RESOURCE 1

DEVELOPMENT

12 EXISTING PROBLEM 2

13 PURPOSE OF RESEARCH 4

14 RESEARCH QUESTIONS 4

15 SIGNIFICANCE OF THE RESEARCH 6

16 LIMITATIONS OF RESEARCH 6

2 LITERATURE REVIEW 7

21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT 7

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS 10

221 Emergence of Labor Unions 12

222 Unionization Problem 12

2221 Opposition of Unionization by State 13

2222 Opposition of Unionization by Employer 16

223 Why Workers Join Unions 17

23 UNIONS ROLE FOR WORKERS BENEFITS 19

231 Wage Rise 21

vi

232 Reduction in Wage Inequality 24

233 Fringe Benefits 25

234 Job Security and Employment 26

235 Time Reduction (Duty Hours) 28

236 Payment of Over Time 29

237 Paid Leaves 29

238 Working Condition 30

239 Health Care and Social Security 31

2310 Post Retirement Benefits (Pensions) 33

2311 Training Opportunities 34

2312 Workersrsquo Education 36

2313 Recreational and Social Services 37

2314 Children Education 39

2315 Workers Awareness 39

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39

241 Productivity Efficiency and Profitability 39

242 Work Place Harmony and Cooperative Role 46

25 STRATEGIES AND TACTICS OF UNIONS 50

251 Source of Strength of Unions 50

2511 Unionsrsquo Density and Their Strength to Effect 50

252 Peaceful Means of Achieving Objectives 51

253 Violent Means 52

26 CORRUPTION OF UNIONS 53

261 Corruption and Selfishness of Officials 53

262 Financial Corruption 53

2621 Embezzlement Examples 56

263 Unionsrsquo Officers Monopoly 57

264 Bribes (Extortion and Pay-off) 58

265 Sound Labour Relations at the Workplace no Important 59

Concern of Employers and Unions

vii

3 HISTORY AND LEGAL FRAME WORK OF UNIONIZATION 60

IN PAKISTAN

31 HISTORY OF LEGISLATION 61

311 Laws Permitting Establishment of Unions 62

312 Laws for Settlement of Disputes 64

313 Industrial Relations Ordinance 1969 64

32 RIGHT OF UNIONIZATION 66

321 United Nationsrsquo Declaration of Human Rights 66

322 ILO Conventions 67

323 Constitution of Pakistan 67

33 PRESENT ENFORCED LAWS 68

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo 68

332 Labor Laws Granting Rights 72

3321 Workmen Compensation Act 1923 72

3322 Factories Act 1934 72

3323 Payment of Wages Act 1936 73

3324 The minimum Wages Ordinance 1961 73

3325 Social Security Ordinance 1965 73

3326 The industrial and commercial Employment (standing

order) Ordinance 1968 74

3327 The companies Profit (workersrsquo participation)

Act 1968 74

3328 The Shops and Establishments Ordinance 1969 74

3329 The Minimum Wages for Unskilled Workers 74

Ordinance 1969

33210 Workers Welfare fund Ordinance 1971 75

33211 Workers Children (Eucation) Ordinance 1972 75

33212 Employees Cost of Living (Relief) Act 1973 75

33213 Employees Old Age Benefit Act 1976 76

333 Labor Policies 76

3331 First Policy (1955) 76

viii

3332 Second Policy (1959) 77

3333 Third Policy (1969) 77

3334 Fourth Policy (1972) 78

3335 Fifth Policy (2002) 79

3336 Labor Protection Policy 2005 81

3337 Labor Inspection Policy 2006 82

4 RESEARCH METHODOLOGY 84

41 THEORETICAL FRAME WORK 84

411 Research Model and Variable Formation 84

412 Research Hypotheses 91

42 POPULATION AND SAMPLING 91

321 Stage-lsquoIrsquo Sampling of Organizations 91

422 Stage-lsquoIIrsquo Sampling of Respondents 92

4221 Sampling of Union Office Bearers 92

4222 Sampling of Permanent (Unionized) workers 93

4223 Sampling of Management 93

4224 Sampling of Temporary (Non-unionized) Workers 93

43 DATA COLLECTION INSTRUMENTS 93

431 Questionnaires and Their Structure 93

44 PREPARATION OF SATISFACTION LEVEL SCALE 97

45 PILOT STUDY 97

46 CODES AND ABBREVIATIONS 97

47 STATISTICAL METHODS APPLIED 98

471 Percentage 98

472 Arithmetic Mean 98

473 Chi Square (χ2) 100

474 Comparison 101

48 CALCULATIONS BY APPLYING STATISTICAL METHODS 101

481 Percentage Calculation of Yes No Responses 101

482 Means Calculations 101

483 Chi Square Applications 103

ix

484 Comparison Application 103

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103

BENEFITS

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105

5 DATA ANALYSIS AND RESULTS 106

51 DATA PRESENTATION 106

511 Organization-Wise Description of Respondents 106

5111 Description of respondents of ARL 107

5112 Description of respondents of CDA 107

5113 Description of respondents of IESCO 107

5114 Description of respondents of KTM 108

5115 Description of respondents of OGDCL 108

5116 Description of respondents of PCP 108

5117 Description of respondents of PTCL 108

5118 Description of respondents of PTV 109

5119 Description of respondents of SNGPL 109

51110 Description of respondents of ZTBL 109

51111 Workers responses of the questions about essentiality

inter unions relations and unions status as compared 109

to past

51112 Unionsrsquo office bearersrsquo responses of the questions 110

about work council charter of demand and unionistsrsquo

training

51113 Management responses about work council charter 110

of demand and wage cut

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA 110

521 Organizational Means of Workersrsquo Variables 111

522 Organizational Means of Managementrsquos Variables 122

53 VARIABLE-WISE ANALYSIS 132

531 Mean Calculation of Variables Measuring Unionsrsquo Efforts 133

for Workersrsquo Benefits

x

5311 Combined Mean of All Workers Variables 163

532 Chi Square Test Application 166

533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED 190

WORKERS

56 WORKERS RESPONSES FOR QUESTIONS ABOUT

ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS 193

STATUS AS COMPARED TO PAST

6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195

61 DISCUSSION 195

611 Organization-Wise Performance of Unions 195

6111 ARL Union 195

6112 CDA Union 196

6113 IESCO Union 196

6114 KTM Union 196

6115 OGDC Union 197

6116 PCP Union 197

6117 PTCL Union 198

6118 PTV Union 198

6119 SNGPL Union 198

61110 ZTBL Union 199

612 Variable-Wise Performance of Unions 199

6121 Workers relating variables 200

6122 Employer relating variables 204

613 Comparison with Non-Unionized Workers 205

62 ANSWERS OF RESEARCH QUESTIONS 207

63 CONCLUSIONS 209

64 SUGGESTIONS AND RECOMMENDATIONS 210

65 SUGGESTIONS FOR FURTHER RESEARCH 212

REFERENCES 213

APPENDICES 229

xi

LIST OF FIGURES Figure No Page 1 Showing sequence of variables effect 84 2 Pie Diagram - Satisfaction Level of Workers on Wage 134

3 Pie Diagram - Satisfaction Level of Workers Financial Benefits 136

4 Pie Diagram - Satisfaction Level of Workers on Job Security 138

5 Pie Diagram - Satisfaction Level of Workers on Time Reduction 140

6 Pie Diagram - Satisfaction Level of Workers on Health Facilities 142

7 Pie Diagram - Satisfaction Level of Workers on Children Educat 144

8 Pie Diagram - Satisfaction Level of Workers on Overtime Pay 146

9 Pie Diagram - Satisfaction Level of Workers on Working Cond 148

10 Pie Diagram - Satisfaction Level of Workers on Leave Facilities 150

11 Pie Diagram - Satisfaction Level of Workers on Post Retire Bfts 152

12 Pie Diagram - Satisfaction Level of Workers on Recreation Fac 154

13 Pie Diagram - Satisfaction Level of Workers on Training Oppor 156

14 Pie Diagram - Satisfaction Level of Workers on Dec Wage Diff 158

15 Pie Diagram - Satisfaction Level of Workers on informing Right 160

16 Pie Diagram - Satisfaction Level of Workers on Workers Educat 162

17a Diagrammatic Presentation of Means of Workers Variables 165

(Bar Diagram)

xii

17b Diagrammatic Presentation of Means of Workers Variables 165

(Line Graph)

18 Pie Diagram - Satisfaction Level of Employers on Productivity 184

Efficienc Increase

19 Pie Diagram - Satisfaction Level of Employers on Workplace 184

Harmony

20a Diagrammatic Presentation of Means of Employers Variables 188

(Bar Diagram)

20b Diagrammatic Presentation of Means of Employers Variables 188

(Line Graph)

21 Diagrammatic Presentation of success of unions 189

(Success Matrix)

xiii

LIST OF TABLES

Table Page

1 Responses of Workers of ARL Organizational Mean Calculation) 112

2 Responses of Workers of CDA (Organizational Mean Calculation) 113

3 Responses of Workers of IESCO (Organizational Mean Calculation) 114

4 Responses of Workers of KTM (Organizational Mean Calculation) 115

5 Responses of Workers of OGDCL (Organizational Mean Calculation) 116

6 Responses of workers of PCP (Organizational Mean Calculation) 117

7 Responses of workers of PTCL (Organizational Mean Calculation) 118

8 Responses of workers of PTV (Organizational Mean Calculation) 119

9 Responses of workers of SNGPL (Organizational Mean Calculation) 120

10 Responses of workers of ZTBL (Organizational Mean Calculation) 121

11 Responses of Management of ARL 122

12 Responses of Management of CDA 123

13 Responses of Management of IESCO 124

14 Responses of Management of KTM 125

15 Responses of Management of OGDC 126

16 Responses of Management of PCP 127

17 Responses of Management of PTCL 128

18 Responses of Management of PTV 129

19 Responses of Management of SNGPL 130

20 Responses of Management of ZTBL 131

21 Mean calculations-wage rise (Wris) 133

22 Mean Calculations - Bonus (Financial Benefits) (Fbft) 135

23 Mean Calculations - Job Security (J-sec) 137

24 Mean Calculations - Time Reduction (Td) 139

25 Mean Calculations - Health Facilities (Hfac) 141

xiv

26 Mean calculations- Children Education (Ced) 143

27 Mean Calculations - Over Time Payment (Ot) 145

28 Mean Calculations - working conditions (Wcon) 147

29 Mean Calculations- leaves facility (Linc) 147

30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb) 151

31 Mean Calculations -Recreation facilities (Rfac) 153

32 Mean Calculations - training opportunities (Top) 155

33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) 157

34 Mean calculations - informing about rights (Ir) 159

35 Mean calculations - workersrsquo education (We) 161

36 Summary of means of workers variables and calculation of combined 163

mean

37 Chi square calculations wage rise (Wris) 167

38 Chi square calculations - Bonus (financial benefits) (Fbft) 168

39 Chi square calculations - Security (Jsec) 169

40 Chi square calculation - Time reduction (Td) 170

41 Chi square calculations - Health facilities (Hfac) 171

42 Chi square calculations - Children education (Ced) 172

43 Chi square calculations - Overtime payment (Ot) 173

44 Chi square calculations - Working conditions (Wcon) 174

45 Chi square calculations - Leaves facility (Linc) 175

46 Chi square calculations - Post retirement benefits facility (Prb) 176

47 Chi square calculations - Recreation facilities (Rfac) 177

48 Chi square calculations - Training facilities (Top) 178

49 Chi square calculationsndashDecreasing workers officers wage salary gap(Wdf)179

50 Chi square calculations - Informing about rights (Ir) 180

51 Chi square calculations - Workersrsquo education (We) 181

52 Calculation of mean of Management responses for unionsrsquo 183

efforts for Productivity Efficiency increase (Pin)

xv

53 Calculation of mean of Management Responses for

Workplace Harmony (Wph) 185

54 Calculation of Combined Mean of Management Responses (Se) 187

55 Facilities of Temporary Workers (Not Union Members) 190

56 Facilities of Permanent Workers (Union Members) 191

57 Essentiality Inter unions Relations and Unions status Compared to Past 193

xvi

LIST OF ACRONYMS

AFL-CIO- American Federation of Labor ndash Congress of Industrial Organizations

AFSCME- American Federation of State and County Municipal Employees

BEST- Basic Education and Skills Training

CBA ndash Collective bargaining Agent

CLR - Campaign for Labor Rights

CC OO-the Confederacion Sindical de Comisiones Obreras(Spain)

CFDT - Confederation Francaise Travail (Niger)

CNSS- National Social Security Scheme (Niger)

CNT- Confederation Nigeacuterienne du Travail

COSATU - Congress of South African Trade Unions

CO2- carbon dioxide

CROC- Revolutionary Confederation of Workers and Peasants (Mexico)

CSD- Commission on Sustainable Development (UNO)

DGTU- Director General of Trade Union (Malaysia)

ECEC ndash Employersrsquo Cost for Employeesrsquo Compensation

EPI- Economics Policy Institute

FAO- Food amp Agricultural Organization

FMLA- Family Medical Leave Act (USA)

xvii

HKDF- Hong Kong Democratic Federation

ILO- International Labor Organization

ITF -International Transport Workersrsquo Federation (ITF)

LDC ndash Lower Division Clerk

LIUNA- The Laborers International Union of North America (USA)

LO- Landsorganizationen i Sverige (Swedish Federation of Trade Unions)

LPL Laborers Political League

MNC- Multi National Corporation

NLRB- National Labor Relation Board (USA)

NMU - National Maritime Union

NTUC National Trade Unions Confederation (Singapore)

OECD- Organization for Economic Cooperation and Development

OSHA- Organizational Safety and Health Act (USA)

PSI- Public Services International

PWF- Pakistan Workersrsquo Federation

SDF- Study Development Fund (Singapore)

SRP ndash Skill Re-development Program (Singapore)

TUAC-Trade Union Advisory Committee to the OECD (TUAC)

TUC - Trade Union Congress

UDC - Upper Division Clerk

UGT- Union General de Trabajadores (SPAIN)

xviii

UI-Unemployment insurance

UK ndash United Kingdom

UNDP United Nations Development Program

UNEP- United Nations Environmental Program

USA ndash United States of America

USTN - Union des Syndicats des Travailleurs du Niger

WERS ndash Workplace Employee Relation Survey (USA)

WHO- World Health Organization

WISE- Workers Improvement through Secondary Education (Singapore)

WRTP Wisconsin Regional Training Partnership

WTO- World Trade Organization

xix

ACKNOWLEDGEMENTS

All glory and praise to God Almighty Who bestowed his blessing upon me in my

life and now enabled me to accomplish this research work

I am greatly indebted to my honorable supervisor Dr Zafar Mueen Nasir Chief of

Research (PIDE) presently Director (Policies) Policy Planning Cell Labor and

Manpower Division Ministry of Labor Manpower and Overseas Pakistanis Government

of Pakistan whose encouraging kind valuable and timely guidance enabled me to

complete this study

I feel pleasure to place record of my deep sense of thankfulness to Professor Dr

Rasheed Ahmed Khan Dean Faculty of Management Sciences and Prof Dr Allah

Bakhsh Dean Faculty of Education National University of Modern Languages Islamabad

Prof Dr Sarfraz Ahmed Mian Chairman Department of Economics University of Arid

Agriculture Rawalpindi Prof Dr Irshad Ahmed Department of Statistics Allama Iqbal

Open University Islamabad and Dr Khalid Masud Visiting Faculty Member Allama

Iqbal Open University Islamabad for their guidance in this research

I am heavily indebted to my family for the time they sacrificed for me during my

studies Their constant support and encouragement helped me to complete this difficult

task

No acknowledgement could even adequately express the thankfulness to my

friends who have always been encouraging me for educational achievements

At the end I pay thanks to all those who were directly or indirectly involved in the

completion of my thesis

CHAPTER 1

INTRODUCTION

When planning for one year theres nothing better than planting grain when

planning for ten years theres nothing better than planting trees when

planning for a lifetime theres nothing better than planting men

Chinese philosopher Guanzi (551 - 479 BC)

11 BACKGROUND OF STUDY OF HUMAN RESOURCE DEVELOPMENT

Human Resource Development is an important discipline of present time It is

considered by scholars of Business Administration as a sub discipline of Human

Resource Management (HRM) concerned with developing productive skills by

imparting them training Werner and DeSimone (2006 p5) defined Human Resource

Development (HRD) as ldquoa set of systematic and planned activities designed by an

organization to provide its members with the opportunities to learn necessary skills to

meet current and future job demandsrdquo Werner and DeSimone (2006) described HRD

as a function of HRM According to Rao (1995) the scope of HRD is extended at one

side to developing competencies of human resource by enhancing knowledge

building skill changing attitude and teaching values and at other side creation of

conditions through public policy programs and other interventions to help people to

apply these competencies for their own and othersrsquo benefits and making things

happen Bacchus (1992) asserted that the ultimate goal of HRD in any country is lsquoto

improve the quality of life of all itrsquos people and not merely concerned with providing

necessary skills to individuals The concept of HRD deals with many facets of

development of individuals including their physical intellectual emotional political

and spiritual aspects

People earn their food and living by working and engage themselves in

productive activities for which a combination of both physical and intellectual

2

development is important Physical development comes from good nourishment and

medical care Intellectual development comes through the process of education and

socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life Thus all aspects of development are integral part

of HRD According to Rao (1995) ultimately what is important is human satisfaction

and the quality of life Developing people is the essence of any HRD effort and it is an

important goal of all other development activities (plans policies programs

establishment of new structures mechanism) All forms of development (economic

technological ecological agricultural industrial etc) are ultimately meant to serve

people in terms of improving their happiness through better quality and standards of

life

The focus of the present study is on improvement of quality of life of workers

due to unionrsquos active role in negotiating higher wages and good working conditions

for them because workers of any organization have weak bargaining power as

employees without their collective representation by a labor union Labor unions exert

their pressure to convince or compel the employer to extend financial benefits ie

good wages bonuses and allowances and non financial benefits ie health facilities

better working conditions recreation facilities training opportunities job security

facilities for education reasonable daily working hours and paid leaves

These facilities improve the living conditions of workers who in turn exert

more efforts to enhance their productivity and profit of the organization

12 EXISTING PROBLEM

Presently in Pakistan the supply of labor is more than its demand causing

unemployment in the country The unemployment rate in Pakistan is estimated as 53

percent in 2006 -07 (LFS 2007) Due to surplus supply of labor its price (wagesalary)

3

is low Government has raised minimum wage recently to Rs 6000- per month which

was only Rs 4600- per month

With this limited income workers can not meet their needs making them

healthy and motivated to work efficiently and dedicatedly Management builds the

skills of workers by training to increase their performance and efficiency but even if

workers are skillful and well trained their performance may not be up to mark of

satisfaction until they are not physically healthy mentally satisfied and motivated or

developed in HRD context But employers usually do not pay attention towards this or

do not desire to pay good remuneration or provide better atmosphere in the pretext of

higher labor cost Unions try to convince or compel the employer for better

remuneration and better atmosphere

If unions are playing a role by protecting the rights of workers and making

efforts to secure benefits for them then the membership of unions must increase but a

declining trend in membership of unions has been observed globally Freeman and

Medoff (1984) Hyman (1999) (Jose 2000) Hirsch and Schumacher (2000) Machin

(2000) Bryson (2001) Saavedra and Torero (2002) Ebbinghaus (2002) Knox (2004)

and Eisenbrey (2007)

The question is (1) why workers are not joining labor unions (2) Are unions

not protecting the rights of workers or exerting efforts for securing benefits for them

A few research studies have looked at the negative image of the labor unions

Ghayur (1996-a) has pointed out that quiet often labor unionism is seen as undesirable

intervention in the smooth functioning of organizations with out realizing the positive

contribution it could make towards industrial peace harmony and progress Employers

allege that labor unions only talk about workersrsquo rights and ignore their obligations

They believe that unions are largely responsible for low productivity and lower

production

4

13 PURPOSE OF RESEARCH

The purpose of this research is to answer three questions

1 Are unions protecting the rights of workers or exerting efforts for

securing benefits for them

2 Do labor unions play any role in promoting physical intellectual and

emotional development of workers and

3 Do unions put any effort to enhance the productivity of the workers and

improve peace at place of work

The effectiveness of trade unions in promoting HRD is determined by some of

the benefits workers receive due to unions Particularly the focus is on the role of

unions in

1 Securing financial benefits for workers in the form of wage rise

bonuses and other allowances

2 Securing non financial benefits for workers like health facilities

workersrsquo education better working conditions decrease in working

hours increase in annual leaves training opportunities etc

3 Giving the workers sense of awareness about their rights

4 Improving the productivity or efficiency of the employees

5 Making harmony at work place between the management and

employees and making efforts for a peaceful industrial atmosphere

14 RESEARCH QUESTIONS

1 To what extent the unions in Pakistan are effective in development of

HR by securing benefits for workers such as

i) Wage rise

ii) Fringe benefits like Bonus

5

iii) Job Security

iv) Time decrease or resistance against time increase

v) Health or Medical treatment facilities

vi) Education facility

vii) Overtime payment

viii) Better working conditions

ix) Leaves increase or resistance against leaves decrease

x) Post-retirement benefits like pension

xi) Arranging recreation facilities

xii) Training opportunities

xiii) Decreasing wages inequality

xiv) Informing workers about their rights

xv) Children education facility

2 To what extent the unions in Pakistan are effective in promoting

employersrsquo interest by developing HR by putting efforts in

i) Motivating workers for increasing productivity improving

efficiency

ii) Improving peace and harmony at workplace

The answers of these questions will determine the effectiveness of unions in

promoting Human Resource Development (HRD)

6

15 SIGNIFICANCE OF THE RESEARCH

The findings conclusions and recommendations of the study will be beneficial

for

1- Governmentrsquos labor policy maker to frame out workers friendly

policies

2- Employers while deciding workers benefits

3- Unions while demanding facilities for workers

4- Workers while making decision of electing their unionCBA

5- Industrial Relations researchers to search further in the matter

16 LIMITATIONS OF RESEARCH

The limitations of the study are

1 The sample covered in the study is only individuals of Rawalpindi Islamabad

and therefore the results can not be generalized to whole of Pakistan

2 The role of trade unions in promoting HRD is measured through employeersquos

benefits and that too is based on the responses of the workers which may

introduce biasness in the results

3 The scale used in the questionnaire for measuring performance of unions is

arbitrary and that too can introduce bias

CHAPTER 2

LITERATURE REVIEW

lsquoHealth and strength physical mental and moral are the basis of industrial wealth while conversely the chief importance of material wealth lies in the fact that when wisely used it increases the health and strength physical and mental and moral of human race

Alfred Marshall (1890) quoted in World Bank Report (1991) 21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT

The ultimate goal of human resource development is to improve the quality of

life of people The human resource development strategy is not merely providing

necessary skills and enabling workers to secure employment rather it encompasses all

those activities which lay the foundation for a fuller and more productive utilization of

the total human resources The concept of HRD implies physical intellectual

emotional political spiritual and all other facets of human development Food

nutrition and freedom from disease are important inputs which make people

productive members of a nation Physical development comes from good nourishment

and medical care Intellectual development comes through the process of education

and socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life and ensure his comfort Thus all forms of

development of people can be included in the definition of HRD Rao (1995) wrote

8

that HRD leads to human satisfaction and the quality of life which is the ultimate goal

Developing people is an important goal of all development activities (plans policies

programs establishment of new structures mechanism) These developments

(economic technological ecological agricultural industrial etc) are ultimately meant

to serve people in terms of improving their happiness through better quality and

standards of life

Human resource development holds the key for economic development by

enabling people to become more productive because economic development depends

upon level of industrial activity which is dependent upon the productivity of human

resource Productivity of human resource depends upon its competencies and

conditions (through public policy programs and other interventions to help the

people) to apply these competencies These conditions are Physical fitness and

motivation Fashoyin (1997) opined that the workers in competitive economic

environment become more important agent in mobilizing all factors of production

towards achievement of a competitive advantage But this is possible by motivated

workforce And motivation of the workforce to commit itself to work and maintain

uninterrupted and effective operations further depends on satisfaction of workers

Worker would be healthy when they are well nourished and physically fit and

motivated when they enjoy better quality and standard of life This would be achieved

when they would receive proper share in the production or development in the form of

increased income or financial benefits enabling them to purchase potent diet

comfortable working conditions proper working hours leave for leisure recreational

facilities and self respect

Rao (1995) is of the view that productivity is determined by the number of

hours of work and its intensity And undernourished or sick person can not work long

or properly Absence of medical facilities further reduces productivity Increased

expenditure on food to the extent it raises productivity can be termed as investment

Better diet housing and control of communicable diseases have raised the quality of

life everywhere

9

A World Bank (1991) study quoted a text of 1890 of Alfred Marshall who

wrote that lsquohealth and strength physical mental and moral are the basis of industrial

wealth while conversely the chief importance of material wealth lies in the fact that

when wisely used it increases the health and strength physical and mental and moral

of human race By conducting some studies World Bank (1991) in its report

concluded that better health and nutrition raise workersrsquo productivity decrease the

number of days they are ill and prolong their potential working lives In Sierra Leone

a 10 percent increase in calories in-take of farm workers consuming 1500 calories a

day raised their output by 5 percent Similar results have been found among Kenyan

road construction workers By reducing morbidity and debility the malaria eradication

program in Sri Lanka in the 1940s led to a ten percent rise in incomes A study of

Basta et al (1979) on the rubber plantation workers in Indonesia revealed that

treatment of anaemic workers with iron tablets for a period of 60 days resulted in an

increase in productivity by 15 to 20 percent and the per capita cost of these tablets was

$ 008 Levin (1986) found that out put increases by about 10 to 20 percent for every

10 percent rise in haemoglobin level

Rao (1995) mentioned study of Behrman and Deolalikar (1998) who came to

the conclusion that lsquoNutrientrsquo intake might affect productivity without altering

indicators of health status because nutrient changes may be transferred largely to

energy expenditure change including that are productivity related

World Bank (1991) concluded after analysis of household survey data from

nine countries suggesting that economic effects of illness may be substantial An

average adult worker in Peru might expect to be ill 45 days a month and misses about

one day of work as a result in Ghana the corresponding figures were 36 and 13

days In the United States workers aged between 18 and 44 miss on an average one

quarter of a dayrsquos work in a month

If workers are unsatisfied they will quit the organization Quah (1993)

analyzed the studies of human resource development in four countries ie Japan

Singapore South Korea and Taiwan and concluded that comprehensive reforms are

needed in public personnel management in the direction of attracting retaining

10

developing and utilizing competent employees Rao (1995) expressed that people will

be un-satisfied and lose motivation if not properly paid They will quit the

organizations causing increase of turnover and leading to increased expenditure of

selection recruitment and training

From the above discussion it is revealed that HRD is to develop competencies

of the people and improving their health and quality of life by providing them better

share in the income of country or any firm in the form of better salary and other

financial benefits (bonus health allowance education allowance recreation

allowance etc) boasting their motivation by reducing the remuneration gapes between

different categories of people providing them more leisure by reducing working

hours comforting their lives by bettering work places and developing socially by

giving them representation freedom of expression and satisfying them by providing

security of job and removing their fears

For expressing the importance of HRD Tan (1996) quoted the saying of a

Chinese philosopher Guanzi (551 - 479 BC) that

When planning for one year theres nothing better than planting grain

when planning for ten years theres nothing better than planting trees

when planning for a lifetime theres nothing better than planting men

In his own words Guanzi explained that grain is something that is planted once

and produces only a single harvest Trees are planted once but may produce ten

harvests Men are things that are planted once but may produce a hundred harvests

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS

Workers or labor class is the major and most important human resource of any

country and they are developed through better quality and standards of life But

workers remained undeveloped because of being under privileged deprived and

victim of the exploitation of employer Khan (1992) mentioned that labor was

considered as a commodity and was subject to economic laws of supply and demand

11

Conditions of workers remained area of concern for centuries particularly after

the industrial revolution No doubt industrialization as a consequence of industrial

revolution was most forceful process in the known history that brought many

comforts in human life But it is a very bitter fact that this revolution also brought

problem of exploitation of workers who became enslaved to the dictates of machines

and capital owners under their profit motives According to Shafiq-ur-Rehman (2003)

employers exploited workers for maximizing profit Colman (2000) wrote about USA

that the industrial revolution for the first time brought thousands of women and

children in the workforce In New England textile mills used to employ young

unmarried daughters of farmers and these textile lsquomill girlsrsquo often worked 12 to 15

hours a day lived in strictly supervised company boarding houses had to be silent

during work and could be fired for using profane or improper language

Situation is still bad at some places and according to ICFTU (nd) report in

Guatemala in some factories workers usually work for 9-10 hour a day and paid

between $1 and $2 per day and sometimes they are forced to work as long as 18 hours

In some factories to meet the demand of large orders workers are given

amphetamines so that they can work 60 hours without stopping

Similarly Amnesty International (2002) also reported that in China the plight

of workers is serious and there are widespread violation of international standards

causing serious injuries and deaths

One reason of these hardships in the words of George (2004) is that a majority

of working people possess labor as their only resource to carry on with their lives

There was a need of a system encompassing institutions dedicated for the

protection of workers and solution of their problems as well as to maintain industrial

peace

Therefore institution appeared in the form of labor unions and system appeared

in the form of Industrial Relations

12

Industrial relations is a tripartite system having government employers and

labor unions as its three components The Wikipedia defines this as

ldquoField of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union

Governments set the framework for labor relations through legislation and

regulationrdquo (Wikipedia-a)

221 Emergence of Labor Unions

The exploitation of workers led them to unite for the solution of their problems

at a platform This platform was labor union In the words of Brohawn (nd) the union

was democratic societys original answer for addressing injustices at the workplace

which attended the birth of the Industrial Revolution In fact unionism was born to

bring social and economic justice for working people Ehrenberg and Smith (1985)

asserted that labor unions are the organizations whose primary objectives are to

improve the pecuniary and non pecuniary conditions of their members Workers

expected their unions to fight for their rights by organizing and financing strikes

According to Shafiq-ur-Rehman (2003) workers formed unions which had to adopt a

confrontational approach towards the employersAbout influence of unions Thomas

(1999) wrote that trade unions are a large organized group in civil society which

brings a unique contribution to the development of community because of direct

involvement with economic systems of production and distribution They also

influence the course and content of employment and social and economic policies

What were and still are the problem of union making are discussed in

following lines

222 Unionization Problem

Emergence of unions in every country and society was and is still a difficult

evolutionary process Literature has shown that organization of workers was not an

easy task and unions had to bear the wrath of state and employer and those whose

13

interests were against unionization Unionization is the democratic right which has

been acknowledged in UNO declaration of human rights and by ILO conventions

2221 Opposition of unionization by state

Rizvi (1973) a Pakistani author wrote that government is one of the important

parties in the industrial labor relations especially when there is high elasticity of

demand but low elasticity of supply of labour But what has been the role of

governments is narrated in lines below

Ghayur (1996-a) wrote about Pakistan that State has also erected barriers by

framing laws discouraging to unionization to maximum extent by imposing difficult

conditions to fulfill particularly in registration Government of Pakistan has

established Export processing Zone (EPZ) in Karachi which is exempted from the

application of certain labor laws especially the right to form a union and to go for a

strike Ghayur also wrote that in Pakistan unionization and collective bargaining is not

permitted to all public sector employees and activity has been brought under Essential

Services Act in many public sector organizations

According to report on lsquoHuman Development in South Asia (2003)rsquo in

Pakistan lsquothe Essential Services Management Act of 1952rsquo was the first hurdle in the

history of the unionization process of Pakistan It restricts the freedom of association

and collective bargaining rights of various groups of workers Employees of Pakistan

International Airlines (PIA) Pakistan Television Corporation and the Civil Aviation

Authority (CAA) as well as workers in postal teaching electric supply and radio

stations can form unions but cannot join a strike The workers in the EPZs are also

denied their trade union rights in Pakistan Export Processing Zones Authority

Ordinance (EPZAO) of 1980 and Export Processing Zone Rules (EPZR) of 1982

exempt the workers in EPZs from the provisions of IRO Workers in EPZs cannot

establish trade unions bargain collectively or organize a strike

Similarly Pakistani researchers Abbas and Hussain (2007) wrote about

Pakistan that a range of restrictions deter the activities and effectiveness of union

organizers One of such laws that restrict trade union activities is the Essential

14

Services Maintenance Act of 1952 (ESA) which includes government services and

State Owned Enterprises (SOEs) like power generation and transmission energy

production ports and the state-owned airline This law generally invoked to ban

strikes and is also used to hold back the right to collective bargaining

Human Rights Watch (1998) reported that in China making of independent

trade unions was illegal union makers were suppressed by the government and their

leaders were imprisoned There is one official union the All China Federation of

Trade Unions (ACFTU) which is under the control of the Communist Party which

appoints all union officials All workplace unions must be affiliated to the ACFTU

Amnesty International (2002) also reported that in China independent labor unions are

not permitted and All China Federation of Trade Unions (ACFTU) a government

controlled trade union is the only national body which governs trade unions activity

but workers had been struggling to create independent trade unions as an alternative to

the ACFTU since the late 1980s For example in May 1989 groups of workers in

various cities formed Workers Autonomous Federations (WAFs) but they were short-

lived and banned by the authorities and later in a crackdown on 4th June 1989

organizers were arrested and prosecuted on counter-revolutionary charges Since

1989 workers made other attempts to form independent trade union but they were

again jailed In 1994 workers who attempted to set up the League for the Protection of

the Rights of Working People (LPRWP) were arrested in Beijing

Bernard (1998) reported about USA that Supreme Court decisions rolled back

union and worker rights as well as amendments to labor law have restricted union

organizers while freeing management to penalize workers who attempted to exercise

their rights

UNDP (2000) in its report quoted that ICFTU in a Press Release dated 6998

reported that in 1997 nearly 300 trade unionists were killed for attempting to organize

labor unions 1681 were tortured or subject to physical mistreatment 2329 were

detained by police or military units and nearly 3500 were intimidated Press release

also alleged that even in United States an estimated 10 percent of workers

15

campaigning for unions are illegally fired 21427 workers lost their jobs in year 1998

for union activities

UNDP (2000) report further revealed that in developed countries despite the

force is not employed as frequently as in the third world many western nations still

have strong pro-corporate factions that have tried to render labor unions powerless

through legislative channels As Kremer and Olken (2001) expressed that even in

USA union formation is not so smooth and under Federal law covering most

industries if 30 of workers sign a petition calling for an election a certification

election supervised by the NLRB is held A union is recognized if more than half the

workers vote for it

Similarly Amnesty International USA (2005) reported that in Philippines

despite the government has ratified 22 of the International Labor Organizations (ILO)

conventions on labor standards including convention No 87 and No 98 the ILO has

received several complaints of non-compliance with these conventions Complaints

including instances of alleged extra-judicial execution of trade union leaders have also

been received

Even after union formation governments hamper the smooth functioning of

unions by different means DeSilva (1997) reported that South East Asian countries

took measures to restrict trade union actions and control unions as well as to avoid

union multiplicity However in some countries government has favored unionization

Government in Thailand for development of sound workplace labor relations

encouraged employers and employees and their organizations by initiating a program

Similarly in Japan workplace relations have been facilitated by the enterprise-union

system because many issues relating to competitiveness needed to be addressed at the

enterprise level and it has also been realized that competitiveness can be enhanced

through sound labor relations Nathanson and Associates (1999) wrote that in Israel to

avoid collective agreements the government as an employer is reducing the

proportion of permanent tenured employees and hiring more and more of its

employees through temporary manpower agencies in the public service and it is very

difficult to organize these temporary workers Waisgrais (2003) reported that in

16

Argentina attempt was made by the state to dismantle the trade union apparatus by

measures such as the suspension of all union activity the abolition of negotiations the

revocation of the right to strike and the removal of social work from the unionsrsquo

sphere of activity

2222 Opposition of unionization by employer

Employers in some countries lose no opportunity of exploiting the workers in

the form of paying low wages and other facilities but unions offer resistance and try

to protect rights of workers Employers put hurdles in the work of unions at the time

of union registration and defame the unions by charging that unions are corrupt It has

been elaborated in lines written below by quoting relative researches

Mills (1994) wrote that management has been hostile to unions during most of

American history American employers mostly opposed the growth of unions often

with the help of the law and the courts and in periods of conflicts federal and state

governments more frequently supported employers instead of unions

Brohawn (nd) expressed that unions are considered by most business

executives to be the kiss of death Small businesses in particular fear unions as an

outside force antagonistic to the interests of the company

Khan (1992) wrote about Pakistan that when worker gets job he becomes

reluctant to take part in unionrsquos affairs for fear of being victimized by management so

a common worker does not care to join a trade union So he concludes that in Pakistan

labor is still unorganized and has not been able to develop a sense of unity

Ghayur (1996-a) also analyzed that in Pakistan every effort was made in

private sector to resist union formation in private sector so if employer does not favor

the formation of union the matter can be prolonged for years Even foreign

companies resist as in Pakistan union of Korean Company (Daewoo) constructing

Motorway could not be registered despite of their best efforts Shafiq-ur-Rehman

(1973) pointed out unsatisfactory relationship between participants of industrial

relations in Pakistan and other developing countries and asserted that attitude of

17

employer is still very authoritative and paternalistic requiring a higher degree of

obedience and loyalty from their working force Their practical strategies have been to

insist on and claim all economic and non economic rights and for get about their

duties

Human Rights Watch (1998) also referred that South Korean companies

operating in Asia have been accused from all quarters of violating workers rights in

Vietnam China and Indonesia The Daewoo Construction Company did not allow the

free functioning of trade unions The case of the Daewoo Motorway Project in

Pakistan which began in 1991 where ten thousand employees were working on the

motorway between Lahore and Islamabad had been reported of use of violent physical

abuse against workers A complaint for this was lodged with the ILO

Employers are hampering the unionsrsquo activities in many ways as Hyman

(1999) expressed that Management always had hostile attitude towards unions In

some countries there has been a growing unwillingness by employers to accept trade

unions as collective representatives of employees while in other countries if collective

bargaining has survived its scope has been reduced and managements have

established new forms of direct communication with employees as individuals In a

report about Lithuania Dovydeniene 2002) wrote that employers strictly forbade their

employees to join unions and threatened to dismiss anyone who showed initiative or

took part in any union activity Workers threatened by unemployment had little

choice in the face of such exploitation

Bray et al (2005) asserted that according to AWIRS (Australian Workplace

Industrial Relations Survey) 1995 overall 88 of managers indicated a preference not

to deal with trade unions and only 7 of unionized workplaces believed that unions

effectively represented the interest of their members

223 Why Workers Join Unions

Bray et al (2005) wrote that people join unions because of dissatisfaction with

economic aspects of job a desire to influence those aspects of the work environment

18

through union-oriented means and a belief that the benefits of unionism outweigh the

expected costs

Holley jr et al (2001) expressed that employees join unions when they are

dissatisfied with physical characteristics of workplace low wages lack of benefits and

believe that unions will help them to achieve them job related conditions Like all

formal organizations unions also satisfy the membersrsquo need by providing means

enhancing a sense of identity and maintaining self-esteem They satisfy the workersrsquo

need of affiliation belonging and status that is at higher level than improved wages and

working conditions

Aidt and Tzannatos (2001) asserted that the desirability of unions depends on

many factors including (a) what unions do (b) how collective bargaining is

organized and (c) the effectiveness of dispute resolution mechanisms

According to Shafiq-ur-Rehman (2003) reasons behind workersrsquo joining

unions are lsquohigher wages and better working conditionsrsquo lsquojob securityrsquo lsquosocial needsrsquo

lsquoPeer groups pressurersquo and self fulfillment

Freeman (2007) analyzed that 70 of workers in 2005 believed that employers

fell short in providing regular cost-of-living raises to employees So workers tendency

towards unions has increased during last decade Freeman on the basis of his

researches with his companions based on WRPSs (Worker Representation and

Participation Surveys) 1990 and 2006 concluded that workers today want as much or

more of a voice in their workplace than they did in the 1990s and want a workplace-

committee form of representation The proportion of workers who want unions has

risen substantially over the last 10 years and workers want unions more than ever

before Because there are substantial gaps between workersrsquo desire to influence the

decisions and their actual influence in several important features of workplaces Bread

and butter gaps relating to issues of benefits and pay are greatest followed by the gaps

of training issues The gap between issues of what workers want in deciding how to

organize their work is smallest

19

The issue at the heart of this paper is to discuss the role of unions in making

efforts for solving the problems of workers in relationship with employers and in

relationship with state or government To avoid this paper from becoming too lengthy

actual research has been restricted to determine the efforts of unions only and not the

quantitative measure of their outcome

23 UNIONS ROLE FOR WORKERS BENEFITS

There have been difficulties in union formation and after formations unions

have also faced a lot of problems while running their business Now it is to see what

the role has been played by unions for benefit of workers and to what extent unions

succeeded therein In this regard researches have been conducted in different countries

or regions in the past which show struggle of respective unions for benefits of workers

such as rise in wages decrease in wage inequalities improvement in working

conditions and living standard betterment in quality of life reduction of working time

job security more paid leaves better pension facility employer sustained insurance

facility health care and health insurance and better health and occupational safety

conditions workers training and education facilities workers family welfare and

cooperative facilities for workers giving the workers awareness of their rights

reducing the fear of employer promulgation of workers favoring laws getting the

enforcement of these laws etc and during this what attitudes unions adopted

aggressive or cooperative constructive or conflicting selfish or sacrificial peaceful or

militant Researches are here to support and endorse these points

According to Guisinger and Irfan (1975) government intervention trade unions

and employer himself are responsible for wage increase

Sennholz (1983) asserted that now it is acknowledged that all labor

improvements are an achievement of the combined efforts of labor legislation and

union activity The credits for this goes to humanitarian legislators and courageous

union leaders for phenomenal rise in wage rates reduction of daily hours of work the

disappearance of child labor the limitation of woman labor and many other results

20

Khan (1992) narrated that trade unions protect material standards of living for

their members and also achieve security of service status in society and self respect

for themselves

According to studies of Nathanson et al (1999) in Israel Inoue (1999) in Japan

and Fahlbeck (1999) in Sweden in socioeconomic field unions rose to the challenge

of meeting the changing requirements of an industrial society for example

established themselves as credible partners and provided a variety of services to

members such as mutual aid credit insurance housing and consumer services mostly

through cooperatives linked to union membership

Jose (2000) concluded that unions played a conduit role for turning economic

growth and prosperity to workers in the form of improved standards of living and the

benefits of collective bargaining in terms of wage and non-wage benefits particularly

as reduction of working time Unions also helped to maintain a wage structure which

minimized income disparities between workers He further expressed that trade unions

are to lead an initiative for a social minimum wage consisting of the right to income

security (security of job) and other entitlements such as education health shelter and a

safe environment (workplace) In Scandinavia the pre-eminent position enjoyed by

unions in terms of membership and influence over public policies was anchored in the

services that unions provided to their members

According to Hirsch and Schumacher (2000) on balance unions are detrimental

to company performance and economic efficiency but in addition to unionrsquos negative

effects unionrsquos representation and collective bargaining provide workers with varying

degree of workplace democracy collective voice monitoring of working condition

protection from discrimination and enforcement of contractual provisions

Lovell et al (2002) using data of Current Population Survey US Census

Bureau found that workers in the retail food industry who are union members have

significantly higher wages higher rates of health insurance coverage larger

employment-based contributions to health insurance premiums and higher rates of

pension coverage than non-union workers Full-time and part-time workers women

and single mothers in the retail food industry all benefit from union membership

21

Shafiq-ur-Rehman (2003) wrote about Pakistan that now role of labor unions is

broad based and in additions to their collective bargaining role unions are involved in

social educational and recreational activities He also expressed that unionization can

the morale and motivation of the work force by improving the nature of jobs or by

changing workersrsquo perception of their jobs

Robles et al (2004) are of the view that unions are also promoters of social

capital in the economy by representing workersrsquo petitions exerting a pressure aimed

to improve conditions at the workplace and acting as employeesrsquo voice easing

communication between workers and employer which leads to help degree of job

turnover consequently reducing training cost of new employees Robles et al asserted

about unionsrsquo role for wages that empirical evidence has shown that unions exert an

upward pressure on wages

231 Wage Rise

The difference of wages between unionized and non-unionized workers is

lsquounion wage premiumrsquo and a major reason of workersrsquo joining of unions Pencavel

(1995) asserted that a primary concern of labor unions is to raise the wages of the

workers they represent because they act as wage-makers rather than wage takers this

role identifies unions as monopolies and according to Bryson (2001) union recognition

by employer for pay bargaining is basis for union influence in the workplace

According to Aslam (1982) a Pakistani researcher wages are of great

significance in an economy because they represent income to the workers cost to the

business men and are a major source of their purchasing power and have an important

bearing on the level of economic activity

Freeman and Medoff (1984) concluded that wage effect of union increased in

the 1970s when unionized workers won wage gains exceeding those of their nonunion

peers It is greater for less educated than more educated workers for younger than for

prime-age workers and for junior than for senior workers and it is greater in heavily

organized industries and in regulated industries than in others As a result of the

existence of trade unions in some unionized firms workers in nonunion firms trying to

22

avoid unions through positive labor relations obtain higher wages and better

working conditions because of the threat of unionism

As per findings of Cassoni et al (2002) the unions increase both wages and

employment and promote investment because the firms substitute labor by capital

Below mentioned studies reveal quantitative unionsrsquo efforts in wage rise or

mitigating wage salary differences

Aidt and Tzannatos (2001) referred that workers either union members or

covered by collective agreements on average get a wage markup over their non

unionized (uncovered) counterparts which is almost 15 percent in the United States

and in most other industrial countries is 5 to 10 percent It appears high in Ghana

Malaysia Mexico and South Africa but relatively low in the Republic of Korea

Holley jr et al (2001) quoted that unionsrsquo wages ranged between 10 and 15

percent higher than non union wages They further analyzed that by 1970s the union

wage differential climbed to 20 to 30 percent This impact was more on wages of blue

collar younger and less educated employees

Belman and Monaco (2001) using the data source of Current Population

Survey 1973-1995 of US Census Bureau found that union membership remains an

important determinant of wages with members earning 18 to 21 more than their

non-union counterparts The earnings of truck drivers fell by 21 between 1973 and

1995 and the primary sources of wage decline and increased wage inequality have

been deregulation a declining manufacturing wage and declining union membership

Blanchflower and Bryson (2002) concluded that both in UK and USA despite

union membership is declining unions are able to raise wages substantially over the

equivalent non union wages and unions in the countries Australia Austria Brazil

Canada Cyprus Denmark Japan New Zealand Norway Portugal and Spain are also

able to raise wages by significant amount and estimates from their 17 examined

countries were averaging 17 percent However in countries like France Germany

23

Italy Netherlands and Sweden where union wage settlement spill over in to non-

union sector there is no significant union wage differential

Klaff and Ehrenberg (2003) using the data source of survey conducted in USA

by the Association of Higher Education Facilities Officers 1997-1998 investigated that

union coverage affected staff salaries at 163 US colleges and universities and

estimated a union salary premium of 9- 11

Cleveland et al (2003) using Survey data for Canadian childcare workers in

1991 found that the union impact on wages was 15

Mishel and Walters (2003) found that unions raise the wages of unionized

workers by roughly 20 and raise total compensation by about 28 They also found

that in USA according to estimates from household surveys in 1990s there was a union

wage premium ranging from 15 to 25 The unionizations impact on wages goes

beyond the workers covered by collective bargaining to affect nonunion wages and

labor practices eg in USA non-unionized high school graduates earned 20 to 55

higher wages in industries with 25 unionization than they did in completely non-

unionized industries

Hirsch (2003) also reported that in one study in 2001 the ECEC data showed a

large gap in benefits between union and non-union workers and hourly compensation

for nonunion workers was $1998 whereas compensation for union workers was $

278 Unions not only raise wages of unionized workers but also affect nonunion

wages albeit to a far lesser extent than union wages

Kang (2003) in a study in Singapore estimated approximate union wage effect

in the range of 02 to 32 percent

Waisgrais (2003) also narrated in a report about Argentina with reference to

several studies regarding the role of the unions and in particular to collective

bargaining that workers covered by collective agreements receive higher wages than

those who are not

24

Knox 2004 wrote that unionized workers are still doing well despite the

flagging numbers as in USA with 8 of workers in the private sector unions still

exercise real power over contracts and there are substantial wage mark-ups In Britain

that isnt the case theres no wage mark-up anymore

However according to several studies unions could achieve either marginal or

no improvement in wages Inoue (1999) revealed that in Japan the automatic annual

pay raise system is widely adopted and wages rise according to years of service

which serve as an indicator for skills In terms of real wages unions have gained

marginal improvements during the 1990s

Similarly Anyemedu (2002) found that in Ghana government considers wage

restraint as a means of attracting foreign investment Hence the government and

employers have succeeded in installing the capacity to pay of employers as virtually

the only factor to be taken into account in wage determination

232 Reduction in Wage Inequality

Labor unions also exert efforts for increasing equality and reducing

discrimination in wages of workers

Freeman and Medoff (1984) opined that unions raise blue-collar earnings

relatively more than white-collar earnings thus reducing inequality between those groups

Unions by adopting pay policies that limit managerial discretion in wage-setting reduce

inequality among workers in the same establishments and among different establishments

A study of The World Bank (1995) revealed that unions eliminated discrimination

of income between workers so during a study in the Republic of Korea in 1988-90 it was

found that unions placed great value on wage equalization and as a result the degree of

wage dispersion in the unionized sector was 52 lower than in the non-unionized sector

In Mexico union action also helped to reduce discrimination and another study using wage

data for 1989 concluded that in the nonunion sector men enjoyed a 175 wage

advantage over women with identical skills and experience but there was no significant

wage differential between men and women in the unionized sector Similarly the study

25

found a significant wage disadvantage for indigenous people in the non-unionized sector

whereas no discrimination in firms covered by trade unions

Stiglitz (2000) Senior Vice president World Bank mentioned admiringly the

role played by organized labor in developed countries in stabilizing industrial

relations preserving firm-specific knowledge and organizational capital and

mitigating the income inequalities

Aidt and Tzannatos (2001) also concluded that unions reduced the wage

differences particularly between unionized workers and skilled and unskilled workers

Card et al (2003) reported similar result that within workers groups of same

skill for union workers wage inequality is always lower than nonunion workers

233 Fringe Benefits

Sennholz (1983) stated that most people expect more from their work than

wages These things are fringe benefits and provide additional remuneration to

employees in the form of vacation and holiday pay sick pay the cost of pensions and

employer contributions to various benefit systems

Cleveland et al (2003) found that the union impact on fringe benefits was in

line with union effects found in other better-compensated work and they found

substantial returns to education occupational level and firm-specific experience

George (2004) concluded that the demand of workers for social justice is

justified and workers are entitled to an equitable distribution of the nationrsquos wealth on

the reasons that labor is an equal partner with capital and management and laborers

are the primary contributors to economic growth of a nation So the workers should be

paid a fair living wage for their labor and certain fringe benefits such as free

healthcare paid holidays and job security George reported that several claims such as

bonuses overtime payments working hours shift duty allowances gratuities

uniforms transport allowances and housing vehicle loans are negotiated between the

union and the employer

26

Carty (2003) referred that in Mexico Consequence of replacement of CROC a

government backed union by an independent union workers receive a wage increase of

10 and a 5 increase in cash benefits and attendance bonuses Workers now make

up to 40 more pay than they were making under the old contract

234 Job Security and Employment

As per analysis of Inoue (1999) for Japanese trade unions safeguarding their

members from any threat of unemployment has a special importance so Japanese trade

unions do not accept lay-offs During the 1950s and1960s there were many protracted

labor disputes caused by threatened dismissal Trade unions lost most of these big

disputes but the losses incurred by the companies were also enormous Therefore in

Japan there is a tacit agreement between labor and management to avoid massive lay-

offs as far as possible This agreement is manifest in employment adjustment practices

during the recession in the 1990

Wong (2000) expressed that employment security and fair distribution of the

benefits of economic growth have been the primary concerns of the labor movement in

Singapore

Farber (2001) quoted the Freemanrsquos analysis that ldquoworkers in union jobs are

less likely to quit reflecting the higher level of wages and benefits this is due to

unions provision of mechanism for lsquovoicersquo as an alternative to lsquoexitrsquo in addressing

workplace concernrdquo

Aidt and Tzannatos (2001) also concluded that in unionized firms voluntary

job turn-over is lower and the job tenure is longer The evidence on this finding from

Australia Japan Malaysia the United Kingdom and the United States seems quite

robust On the other hand layoffs particularly temporary layoffs are more frequent in

unionized firms than in non-unionized ones

According to Lee et al (2001) Labor unions in Korea strongly opposed the

introduction of redundancy lay-off by massive nation wide strikes

27

Unions also give courage and awareness therefore according to Mishel and

Walters (2003) Union members have significantly less anxiety about losing their job

or suffering other employer-imposed penalties for taking leave

ILO (1999) reported that the trade unions cooperated in Singapore with the

state and the employers in efforts to maintain full employment to set wages at levels

which maximize employment therefore unions have accepted temporary wage cuts in

order to save employment

Vedder and Gallaway (2002) asserted that unions are associated with lower

rate of growth in income and jobs Occupations and industries with high rates of union

density have had less vibrant job growth in recent decades Widespread unionization

of an industry is often associated with initial sharp declines in employment as the

steel industry demonstrates

Addison (nd) concluded from survey in UK and reported a retarding role of

unions in employment growth as unionized establishment in 1980s tended to grow 3

percent less per year than their non unionized counterparts Union plants were more

likely to be shedding labor and unions induced reduction in employment growth in

26 for 1989-90

To overcome loss of unemployment and slow growth in employment caused

by unionization unions played role in launching unemployment insurance schemes

and unemployment benefits Katz et al (1993) reported that unions in Sweden and

Denmark have played a constructive role in the administration of unemployment

benefits

Bernhardt et al (2002) studied the Wisconsin Regional Training Partnership

(WRTP) which is an association of 125 employers and unions dedicated to family-

supporting jobs in a competitive business environment and found that the WRTP

members have stabilized manufacturing employment and contributed about 6000

additional industrial jobs to it over the past five years

28

According to Mishel and Walters (2003) unionrsquos representation increases the

likelihood of an unemployed worker in a blue-collar occupation receiving

unemployment insurance (UI) benefits by approximately 23 They also referred that

role of unions is pivotal considering unemployment insurance acts as a stabilizer for

the economy during times of recession

Unions have also operated Unemployment Insurance themselves as Zutavern

(2005) reported the existence of unions operated voluntary unemployment insurance

schemes in Denmark Finland and Sweden

Budd and McCall (2004) using and analyzing data source of January 1996

Current Population Surveys Displaced Worker Supplement of US Census Bureau

found that eligible blue-collar workers laid off from union jobs are approximately 23

more likely than comparable nonunion workers to receive unemployment insurance

benefits

235 Time Reduction (Duty Hours)

Unions have struggled to minimize the duty time and working hours which

were once more than ten hours in a day or more than 70 hours a week (even more than

3000 hours a year) in 19th century But in 20th century are 8 hours a day or 40 hours a

week and in some countries even less than this However the level of success is

different in different countries

Colman (2000) reported that in USA in 1835 General Trade Unions in a

number of cities led a successful general strike to shorten the working day from

fourteen hours or more to ten hours and in Philadelphia a group of Irish laborers

struck for time reduction and marched through the city chanting lsquosix to sixrsquo In same

year in Dover New Hampshire girls and boys struck the cityrsquos mills and won a

reduction of hours from 135 to 12 hours per day Their effort succeeded after a

century and time was reduced to eight hours As Sennholz (1983) wrote that in USA in

1938 the federal government passed Fair Labor Standards Act which imposed

minimum wage rates provided for a 40-hour week and also allowed for overtime

work if paid at time and one half and it is public opinion that all labor improvements

29

are an achievement of the combined efforts of labor legislation and union activity ILO

(1999) reported that unions in Germany have negotiated for a 35 hours week in some

sectors and regions early retirement schemes part-time work educational leave and

family leave

Japanese Labor Union Rengo presented a reduction in working hours and

adoption of policies favoring labor Rengo sought the introduction of a five-day week

In 1993 Rengo adopted the policy delineated in the New Medium-Term Working

Hour Reduction Plan with the target of 1800 working hours by fiscal year 2000

(Inoue 1999)

This time reduction was prevailing everywhere at large extent as Aidt amp

Tzannatos 2001) wrote that hours worked is lower among unionized than non-

unionized workers This is true for both total and normal hours

Buchmueller et al (2001) also found that union workers work fewer hours per

week than non unionized workers and this difference was 3 hours from 1972 to 1984

and after 1992 this difference is one hour per week

Lee et al (2001) pointed out that in 1997 in Korea flexible working hour

system was allowed with maximum of 48 hours per week cycle with the condition that

one week average will not exceed 44 hours or 8 hour a day

236 Payment of Over Time

Aidt and Tzannatos 2001) pointed out that unionized workers are more likely

to get paid for the overtime work that they do

According to Mishel and Walters (2003) employer compliance with the

overtime pay regulation rose sharply with the presence of a union because unions

often report violations to enforcement agencies

237 Paid Leaves

Budd and Mumford (2001) asserted that in UK trade union is one possible

institution for improving work-life problem and a primary mechanism for trade unions

30

in this regard is to bargain for additional employer-provided family friendly policies

including parental leave and paid family leave Unions appear to positively affect the

provisions of parental leave and job sharing options

Union workers have one week more vacation time than non-union workers

Union workers generally spend on leave slightly more time for illness their own or

illness of others which is approximately 14 week per year as compared to one week of

non-union members (Buchmueller et al 2001)

Aidt and Tzannatos (2001) stated that fringe benefits are more commonly

found among unionized workers than among non-unionized ones (in Australia Japan

Malaysia the United Kingdom and the United States) Benefits can include severance

pay paid holidays paid sick leave pension plans and so on

Mishel and Walters (2003) expressed that union workers also get more paid

time off which includes having 266 more vacation than nonunion workers and

according to another estimate the union workers enjoy 143 more paid time off

including vacations and holidays

238 Working Condition

Working conditions are of very importance for workers because they affect

their performance and productivity Khan (1992) wrote that an industrial worker

spends at least 8 hours a day three hundred days a year and about forty to fifty years

of his life period at workplace If the lives of the industrial people are generally

healthy happy and agreeable it is necessary that working conditions should be

healthy congenial and attractive and work itself should be made as interesting as

possible and relations between workplace workers and management should be

friendly and cooperative Robles et al (2004) asserted that enhancement of working

conditions in turn may increase inputsrsquo productivity Unions exert efforts for pleasant

working conditions

31

Thomas (1999) stated that trade union movement in South Korea fought for

basic labor rights and improvement of working conditions and it also has widely

known assertive role in the processes of re-structuring

Wong (2000) narrated that in Singapore the fundamental role of trade unions

remained to ensure fair wages and working conditions and to improve the standard of

living and quality of life of workers

239 Health Care and Social Security

Unionsrsquo role in securing health safety and welfare benefits for employees has

been found in following studies

Weil (1992) in his study made a comparison of OSHA enforcement in union

and nonunion construction sites and found that union sites face higher probabilities of

inspection and receive greater scrutiny during inspections than do comparable

nonunion sites

According to Buchmueller et al (1999) the role of US trade unions in

obtaining health and welfare benefits for their members dates to the 18th century and

in Britain a greater inducement for workers to join the union was support in sickness

or unemployment They also reported that in USA due to collective voice and other

factors union effects on the provision of health insurance are likely to be large

therefore unionized workers are more likely than non-unionized workers to receive

health benefits and the difference is depicted by higher probabilities of insurance

offers and higher take-up rates for union workers They further wrote that plans

offered by union establishments are about 20 percentage points more likely to be fully

financed by employers (494 percent vs 296 percent) than employers of non union

establishments They also asserted that in health plans in unionrsquos establishments

proportion of health insurance premiums paid by employers was 14 percent higher in

union settings Buchmueller et al found that in USA union establishments are 153

percentage points more likely to pay the full premium of insurance for family

coverage as compare to non-union ones (276 percent vs123 percent)

32

Stiglitz (2000) admitted that unions have played role in Health and safety

standards and had played also role in improvement of working conditions for workers

According to another study by Jose (2000) Histadrut a trade unions of Israel

grew in strength until the early 1990s with an impressive membership based on the

provision of services notably health care

According to Farber (2001) union members receive a larger fraction of their

compensation in the form of health insurance and pensions

Budd and Mumford (2001) also reported that individuals represented by a trade

union are more likely to receive traditional fringe benefits such as health insurance and

retirement plans

Adji (2002) expressed that in the Niger the union representing employees

working for the national social security scheme (CNSS) is preparing a social fund

designed to provide a supplementary pension and to pay the 20 per cent of medical

expenses which are not covered by the national scheme In Niger the USTN is

developing a health insurance project

According to Hirsch (2003) unionsrsquo workers receive more compensation for

risks than non-union workers

Mishel and Walters (2003) narrated that ldquoUnions had provided labor

protections for their members in three important ways (1) By identifying where laws

and regulations are needed and getting these laws enacted (2) Providing information

to members about workers rights and available programs and (3) By encouraging

their members to exercise workplace rights and participate in programs by reducing

fear of employer retributionrdquo Mishel and Walters concluded that unionized workers

are given employer-provided health and pension benefits far more frequently as

compare to nonunion workers and also provided with better paid leave and better

health and pension plans Unions also reduce wage inequality between workers and

workers groups because they raise wages more for low and middle-wage workers than

for higher-wage workers more for blue-collar than for white-collar workers and more

33

for workers who do not have a college degree Union members are 60 more likely

to file an indemnity claim than nonunion workers They also mentioned findings

quantitatively that 835 of unionized workers have employer-provided health

insurance and only 62 of non-unionized workers have such a benefit Unionized

workers are 244 more likely to receive health insurance coverage in their

retirement Employers with unionized workforces also provide better health insurance

paying an 111 larger share of single worker coverage and a 156 greater share of

family coverage and deductibles for unionized workers are 18 less They concluded

that in USA implementation of OSHA seems highly dependent upon the presence of a

union at the workplace

ILO (2005) reported that every year some 22 million people in the world

succumb to work related accidents or diseases so it is the daily grass root work of

labor unions to ensure the compliance of health and safety regulations at work

2310 Post Retirement Benefits (Pensions)

Unions also have an eye on the life of workers after the end of service For this

they exert efforts either in the form of arranging employer contribution or launch their

own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is

shown in the several researches where unionized workers receive better pension

options and opportunities

Freeman and Medoff (1984) opined that unions alter the entire package of

compensation substantially increasing the proportion of compensation allotted to

fringe benefits particularly to deferred benefits such as pensions and accident and

health insurance which are favored by older workers These changes are on balance

to be viewed as a social plus

Bernard (1998) was of the view that trade unions in USA had been the most

successful labor movement in the world by enjoying the highest wage premium and

winning benefits like pensions health care and paid vacations for their members that

in other industrial countries working people could win only through political and

industrial action

34

Holley jr et al (2001) expressed that in 1999 unionized US employers per

hour paid benefit costs averaging $ 853 compared to non-union employer costs $466

These costs include pension payments payments for time not worked (such as

vacations sick leave paid rest and lunch breaks) insurance costs and legally required

payments (social security unemployment compensation)

Buchmueller et al (2001) reported that in 1983 union workers were nearly

twice as likely to participate as compare to non-union workers in an employer-

sponsored pension plan (766 percent vs 388 percent) and between the years 1988 to

1993 the unionrsquos effect on employer provision of retiree benefits increased

substantially and the unadjusted union effect rose from 101 percentage points to 167

percentage points

Similarly Mishel and Walters (2003) wrote that 719 of unionized workers

have pensions provided by their employers while only 438 of nonunion workers

enjoy this facility Thus unionized workers are 539 more likely to have pension

coverage

Ebbinghaus (2002) found that in Europe trade unions have gained or

enhanced their collective bargaining role in the area of private pensions in addition to

mandatory state pensions

2311 Training Opportunities

According to some researches unions are also taking interest in workers

training education and awareness either pursuing government or employers to arrange

training or arranging training programs themselves to build their skill and enhance the

earning capacity of workers

Therefore Aidt and Tzannatos (2001) wrote that unionized workers tend to

receive more training than their non-unionized counterparts especially company-

related training

Wong (2000) stated that in Singapore unions urged employers to invest in

training of workers and also negotiated training clauses in collective agreements and

35

sought to ensure higher subsidies from SDF for training of lower- skilled lower-

income workers She further wrote that NTUC and affiliated unions urged workers to

enhance their skills as a means to ensure employment security by keeping pace with

changing job requirements and to increase their earning capability in the longer term

In December 1996 to help workers to remain employable throughout life by providing

nationally certified skill training NTUC also approached employers to sponsor their

employees for skills upgrading programs On 30th June 1999 a total of 288 companies

had committed 21800 workers for SRP programs in five general launches and nine

sectoral launches since December 1996

Katz et al (1993) wrote that in many countries unions are involved effectively

in vocational education programs so Adji (2002) reported that in Niger The USTN is

running a project to provide low-cost training to workers and one of the unions is

organizing and training workers in the sectors which it represents In January 1999 an

international cooperation project was launched (ILODANIDA) with the aim of

supporting the efforts of USTN and CNT to provide workersrsquo education in the

informal sector The USTN is also running a training school and an agricultural

project

Booth et al (2003) using data of British Household Panel Survey 1991-96

found that union-covered workers were more likely to receive training and also

received more days of training relative to non-covered workers Among workers who

received training those with union coverage enjoyed greater returns to training and

higher wage growth than did those without

Shafiq-ur-Rehman (2003) mentioned about Pakistan that capitalist

entrepreneurs including the past governments have been least interested in

development and training but this situation has improved now and many employers

with encouragement from Skill Development Fund are actively training their workers

and provide all facilities to trade unions

TUC (2006) in a briefing paper reported that union presence has a significant

impact on the incidence of training Analysis of the 2003 Labor Force which showed

that 39 of union members had been engaged in some training in the previous three

36

months compared to only 26 of non-unionized employees TUC also reported that

employees get more training when the issue is negotiated with employers by unions

rather than employers simply consulting with unions about the organizations training

strategy TUC referred research by Francis Green 1996 which demonstrated that

unionized workplaces were 17 more likely to have a training centre and 11 more

likely to have a training plan TUC referred other studies such as of Heyes et al

(1998) showing that training is more likely to deliver benefits to members when

unions not only secure recognition from the employers but also play an active role in

decisions about what is provided and Metcalfs research who found that the pay-off

from engaging in training is also much greater for union members than it is for non-

unionized employees For male union members the post-training wage was 21

higher than the pre-training wage but the corresponding increase for non-unionized

male employees was only 4

Addison (nd) wrote that there are a number of theoretical arguments

suggesting that unions may stimulate training The British work on determinants of

training has generally reported positive effects He reported positive relations of

unionsrsquo recognition with the incidence of training and union recognition also leads to

increased hours or days of training

A study of Boheim and Booth (2004) showed positive relations of union

recognition with training in private sector

2312 Workersrsquo Education

Fahlbeck (1999) reported that in Sweden the extensive training and education

programs conducted by virtually all unions LO for example has a wide range of

educational programs and runs several schools Anyemedu (2002) also reported that in

Ghana the TUC has made the education of its members one of its priority concerns

The participants of conference on sustainable development (CSD 2001) evidenced it

by acknowledging that trade unions have developed capacity for workplace centered

education because unions are the foremost providers of adult education in many

countries

37

2313 Recreational and Social Services

Unions have rendered service in provision of social benefits launching

cooperative movement and arranging recreational facilities to workers Jose (2000)

wrote that unions over the years embraced a broader agenda including health care

leisure and recreation retirement and non-wage benefits from employment

Fahlbeck (1999) reported that unions in Sweden provide services regarding the

private lives of their members for examples unionrsquos actions include contracting

insurance policies for their members such as home and accident insurance In

addition unions can arrange private bank loans or provide collateral for a loan and

Swedish union LO has recently entered in the field of utilities About recreational

services Fahlbeck wrote that unions routinely assist members in realizing meaningful

activities during time off and also help in arranging vacations One of the leading

travel and tour operators in Sweden which also runs hotels is a creature of the LO

movement

ILO (1999) observed that in the newly industrialized countries unions have

played an important role in shaping social security systems that is different from

industrialized countries For example in Singapore unions provided welfare benefits

to members Workers and employers together contributed a significant share of their

earnings to the Central Provident Fund Unions also participated in mobilizing

savings The other example is of Hong Kong where unions have also pushed for the

establishment of a pension system although this has not yet been functional In the

newly industrialized countries unions have played an important role in shaping social

security systems such as in Singapore where unions provide welfare benefits to

members and also participate in a sophisticated mechanism for mobilizing savings

Workers and employers together contribute a significant share of their earnings to the

Central Provident Fund which has become an important pillar of the Singapore

economy In Hong Kong (China) unions have also pushed for the establishment of a

pension system although this has not yet been put in place

38

Thomas (1999) reported that in Singapore trade union movement adopted new

role being associated with the implementation of welfare schemes so he terms unionrsquos

this role in Singapore as accommodating model

Virmani and Rao (1999) reported that the unions in Singapore have started on

non bargainable activities to enrich workers lives as they are promoters of

cooperatives in transportation health care consumer cooperatives insurance etc by

running 8000 taxies and 47 cooperative supermarkets

Wong (2000) expressed that in Singapore in 1969 for a socio-economic

movement contributing to workers well being in the wider community the role of

trade unions was broadened beyond collective bargaining on terms and conditions at

the workplace To start a cooperative movement decision was made to pool resources

with the objective to provide services to which private businesses were not offering to

lower-income workers and to give workers a stake in the ownership and management

of business ventures It was also decided to return any surplus to worker and union

shareholders and to the labor movement Wong further narrated about provision of

recreational facilities that in Singapore in 1986 the NTUC pooled resources to set up a

union operated Club for affordable facilities for members and their families today

there are eight outlets in the Singapore Unions with corporate support developed at

state land large-scale projects like NTUC Pasir Ris Resort NTUC Sentosa Beach

Resort and NTUC Aranda Club for affordable holiday facilities within Singapore and

also sat up the Orchid Country Club for workers golfing accessible to all through their

union or personal membership For cooperatives Wong reported that in Singapore

NTUC established its first cooperatives in 1970 to provide insurance to ignored

workers now there are ten cooperatives ie Denticare Fair Price (supermarket)

Childcare Healthcare Food fare (cooked food) Choice Homes Eldercare Media

Thrift and Loan providing services to meet the diverse needs of workers and their

families

Stiglitz (2000) also acknowledged the highly constructive social and political

roles of labor movements in many countries in promoting adult education movement

39

the mutualism movement in the form of credit unions mutual banking mutual

insurance cooperatives friendly societies and other self-help associations

Ebbinghaus (2002) found that even in Europe now unions are involved in the

social policy area and participating in self-governing bodies of national social

insurance schemes

2314 Children Education

Song (1999) wrote in research report about unionsrsquo struggle in Korea that

working conditions have gradually improved with a shorter working day and for

better fringe benefits including childrens education and housing allowances

2315 Workers Awareness

Mishel and Walters (2003) reported that unions created awareness about laws

regarding health such as in USA about FMLAs existence and regulations Unions

have also given workers awareness about their rights so union members are about 10

more likely to have heard of the FMLA (in USA) and understand whether or not they

are eligible This is because of awareness given to them by unions

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY

The co-operative role of unions towards state employer and society by

exerting efforts to increase productivity and efficiency has been studied by several

researchers as quoted in following lines

241 Productivity Efficiency and Profitability

According to Hirsch (1997) productivity simply means output for given levels

of inputs A firm that is more productive than another can produce more output using

the same combination of inputs or equivalently produces the same output using fewer

inputs When increase in productivity is referred attributable to unions it means a real

shift in the marginal product schedule Hirsch concluded from many studies both

negative and positive effects of unions on productivity Even some studies show

negative as well as positive effects of unions on productivity at different times in the

40

same study Hirsch quoted about the effect of unions upon productivity that unions

increased total factor productivity by more than 20 percent

Shafiq-ur-Rehman (2003) is of the opinion that unions provide their members

both with protection against arbitrary management decisions and voice ant work place

and this will be not only increasing wages but productivity as well He further wrote

that collective voice face of unionism suggests important ways in which unionism can

raise productivity

There are surprisingly few manufacturing-wide or economy-wide productivity

studies and none reports consistent evidence of an overall positive effect of unions

upon productivity

Maki (1983) using aggregate Canadian data concluded that the shock effects

of unionization initially increase productivity levels but that unionism is associated

with slower productivity growth British studies of Nickell Wadhwani and Wall

(1992) and Gregg Machin and Metcalf (1993) for differences in productivity growth

between unionized and non-unionized firms evidenced that unions have either a

negative effect or no effect on productivity growth during the early years of their

analysis but positive effects during the 1980s Marshall (1987) is of opinion of

negative effects of unions on productivity and economic performance

A study of Morgan (1994) who used aggregate cross-sectional manufacturing

data across time found surprising results Morganrsquos estimates for the years around

1972 were of increasing productivity but declined steadily over time and were

negative during the 1980s

Fernie and Metcaf (1995) found that for one dimension measure the union

effect is negative but only marginally significant

Hirsch (1997) referred his own study based on a sample of 531 firms and

covering the period from 1968 to 1980 and provides the most comprehensive

treatment of unions effects on productivity growth where he found that union firms

are found to have substantially slower productivity growth than nonunion firms

41

Aidt and Tzannatos (2001) are of the view that the impact of unions on

productivity levels is empirically indeterminate Some studies suggest a positive

impact but others imply a negative impact or no impact at all For example unions

appear to have a negative impact on productivity levels in the United Kingdom but a

positive impact in Malaysia Regarding profitability Aidt and Tzannatos concluded

that net company profits tend to be lower in unionized firms than in similar non-

unionized firms (in Japan the United Kingdom and the United States) There seems

to be a relatively large negative impact on profitability in firms that have product

market power

Addison (nd) wrote about UK that early British evidence shows negative

effects of unionism on the productivity of firm and establishment but according to

later researches there is no short fall in unionized establishments during period of

1979-1984 and unionized firms increased their productivity most at the end of the

1980s There are several studies showing negative albeit least effects of unionism on

productivity as Gregg et al (1993) found that unions recognition affects negatively but

statistically insignificant effect during 1984-97 but positive and statistically significant

for 1988-89 (+3 to 4 ) Study of Conyon and Freeman (2001) revealed that union

effect is negative but statistically insignificant

According to Vedder and Gallaway (2002) Labor unions in contemporary

America have harmful aggregate effects on the economy They are associated with

lower rates of growth in income and jobs On balance people move away from union-

intensive areas to areas with relatively low rates of union density Occupations and

industries with high rates of union density have had less vibrant job growth in recent

decades Widespread unionization of an industry is often associated with initial sharp

declines in employment as the steel industry demonstrates The decline in union

density in the private sector in the past generation has been sharp and that decline has

added to the vitality of the economy at the beginning of the new century The

increasing weakness of unions in the market economy has contributed to economic

growth and a rising proportion of the working age population that actually works

42

From some researches evidences have been found that unions have worked for

enhancing the efficiency and productivity of workers Freeman and Medoff (1984) are

of the view that in many sectors unionized establishments are more productive than

nonunion establishments while in only a few they are less productive The higher

productivity is due to lower rate of turnover under unionism improved managerial

performance in response to the union challenge and generally cooperative labor-

management relations at the plant level

Eaton and Voos (1992) concluded that union firms are more likely than their

nonunion counterparts to be involved in workplace innovation such as those of

cooperative arrangements like teamwork and production gain sharing which yield

higher productivity Kelley and Harrison (1992) found that unionized firms were as

much as 31 percent more productive than non-union firms

In its report the World Bank (1995) concluded that trade unionrsquos activities

could be conducive to higher efficiency and productivity because they balanced the

power relationship between workers and managers and unions limit employerrsquos

arbitrary exploitative or retaliatory behavior by establishing grievance and arbitration

procedures Unions reduce turnover and promote stability in the workforce conditions

that causes an overall improvement in industrial relations which leads to enhance

workers productivity The view that the unions can enhance productivity and

efficiency also has been supported by recently analyzing Malaysian data

Pencavel (1995) wrote that presence of union and its representation of workersrsquo

demands views and ideas before management can benefit as well as harm the firm It

benefits when productivity and efficiency is increased and causes harms when wages are

raised beyond the firmsrsquo paying level For example in many jobs the worker may be

better informed about the potential for productivity improvements within his department

than his supervisor and he will be more willing to provide that information if he is

confident that any change in organization will benefit him He can communicate his

information to management through his agent that is union The presence of an agent of

the worker may make the worker less suspicious that the information he reveals will

benefit only management There is evidence that participation by workers in a firms

43

decision-making sometimes raises productivity and if the union involves the workers in

efficiency-enhancing activities then unionism is associated with a more productive

organization However according to Pencavel there were also arguments to suggest that

unionism harms productivity particularly when a union protects indolent or careless

workers from disciplinary action or when a union opposes changes especially labor-

saving technological changes and thereby retards an organizations development or a

union may successfully negotiate capital-labor ratios that oblige the firm to use more

workers per machine than relative input prices would call for

Fashoyin (1997) is of the view that in Japan the productivity improvement

movement has had a much greater impact and unions were an important party to the

productivity improvement crusade

According to Tolentino (1997) during the Asian Regional Seminar of ILO on

Trade Unions Industrial Relations and Productivity held in Tokyo in 1982 the

participants adopted the view that the goal of high and increasing productivity in

industry agriculture and services is one to which Asian trade unions no less than

management and government can and ought to subscribe This position was a clear

exemplification of the trade unions long commitment to national development and

indeed of their perception of the leading role which they could and should play in this

process Tolentino opined that the rapidly globalizing economy calls for dramatic

changes in the roles that the trade unions have to play to improve national

competitiveness for the sake of workersrsquo well-being As representatives of workers

they could play a significant and active role in creating the national economic and

business environment that will make their countries competitive in the globalize

marketplace of capital technology products and services The trade unions as

representative organizations of workers have very important roles in the promotion of

productivity At the macro level they could participate in the creation of the policy

and general business environment conducive to productivity improvement and at the

institutional level they could exercise their influence in making productivity related

institutions such as vocational training systems industrial relation bodies etc

effective At company level trade unions can participate in the companys productivity

improvement efforts by helping to create the enterprise policies and structures that will

44

guide and facilitate productivity improvement and helping their members directly to

participate in the productivity improvement programs of the enterprise In Poland in

the last three years more than 600 enterprises have undertaken productivity

improvement programs through the joint efforts of management and trade unions and

achieved growth 2 to 5 times the growth rate of the whole Polish economy

Productivity raised by 78 (in one year) compared to 8 in the total economy The

tremendous increase of profit made bonuses possible Some of the enterprise started to

increase employment The personal income of workers increased by an average of 20

compared to 2 in the whole economy due to the 40 growth in the value added

in these enterprises compared to 6 in the whole economy

According to Human Rights Watch (1998) productivity in Malaysia is actually

higher in enterprises where the workers are organized in industrial unions than in non-

unionized companies

Cassoni et al (2002) also reported that unions promote increases in

productivity and prevent profitability increases

A study of Bernhardt et al (2002) of Wisconsin Regional Training Partnership

an association of 125 employers and unions concluded that among member firms

productivity is way up exceeding productivity growth in nonmember firms

Shafiq-ur-Rehman (2003) wrote that in some Asian countries like Korea and

Japan trade unions adopted a cooperative and assisted management in improving

efficiency

Ash and Seago (2004) examined the relationship of unionized nursing staff and

the mortality rate for acute myocardial infarction (AMI) or heart attack in acute care

hospitals in California and found that hospitals with union nurses have 55 lower

heart-attack mortality than do non-union hospitals

Doucouliagos and Laroche (2003) expressed that the economics literature

found a positive association of unions on productivity The positive association of

unions with productivity is established for the United States in general and for US

45

manufacturing in particular Eisenbrey (2007) denied the common myth that unions

hurt productivity supposedly because they impose work rules that make their

employers less efficient He quoted yearly growth of workers productivity in the form

of bar chart showing productivity increase of 18 18 15 15 14 17 23 and 17

for Belgium France Germany Italy Netherlands Spain Sweden and USA

respectively for years 1979 to 2005 Productivity in USA did not increase even as

consequence of dropping of unionization to 12 during this period while productivity

increased in the seven largest European countries with union density greater than 60

Regarding profitability Freeman and Medoff (1984) are of the view that as

compared to non-union employers unionized employers tend to earn a lower rate of

return on capital because of increase in wages and the greater amount of capital used

per worker These increased costs are not compensated for by the higher productivity

of labor associated with unionism

About profit Hirsch (1997) analyzed that union wage gains lower firm

profitability unless offset by productivity enhancements in the workplace or higher

prices in the product market He concludes from several studies that although there is

diversity in results most studies obtain estimates suggesting that unionized firms have

profits that are 10 percent to 20 percent lower than the profits of nonunion firms

Saavedra and Torero (2002) referred evidence from some studies showing

negative effect of unions on profits and also a negative albeit less robust impact on

labor productivity in Peru

Studies of Addison and Hirsch (1989) and Machin and Stewart (1996) about

North America and Meneses-Filho (1997) for the United Kingdom reveal that unions

have a negative effect on profits and on shareholders wealth About profitability

Addison (nd) expressed that almost all early British studies showed negative effects

of various indicators of presence of union on the financial performance or profitability

46

242 Work Place Harmony and Cooperative Role

Unions are blamed for harsh and quarrelsome attitude non-cooperation and

always demanding for benefits Following studies shed light on it

Katz et al (1993) concluded that despite in some cases unions have defended

the lsquotraditional waysrsquo by fighting against the lsquochangesrsquo but in some other cases unions

cooperated for saving jobs and promoting human-side benefits of more flexible work

organization Unions have also played a proactive reformist role by pushing

management toward new forms of organization such as group work

Wagar (1997) in his paper investigated the relationship between labor-

management climate and perceptions of productivity product or service quality and

customer or client satisfaction using a regional and national sample of Canadian

organizations and a regional sample of local unions Results reveal a strong

relationship between labor-management climate and measures of organizational

performance with a more positive labor-management climate associated with more

favorable scores on the performance variables

About India DeSilva (1997) concluded that the unions and management which

are social partners after decades of conflict have gradually recognized the importance

of bipartite relations which emphasizes on workplace harmony

Preuss (1998) during a study of Management Cooperation and Hospital

Restructuring in USA found that union labor-management committees improve

communication and ease the process of implementing new hospital practices in

response to changing market demands

Song (1999) wrote that South Korean unionrsquos struggled to promote worker

compliance and commitment to firms and brought the employees back from street

rallies into the workplace

ILO (1999) reported that in countries like Denmark Germany Italy and the

Netherlands governments want to associate trade unions with social and economic

policies which are translated into employmentrdquo and social pacts whereas in the UK

47

and New Zealand during last two decades trade unions and governments relations

have deteriorated and the position of the trade unions weakened by a hostile political

environment ILO report quoted instances of union and state cooperation In Italy

because of state and unions mutual affinity a tripartite pact to promote employment

with special attention to the less developed areas and agreement including significant

elements on educational reform training and the reduction of working time was signed

in September 1996 In Spain trade unions are cooperating with government policies in

regarding job creation and regional development In Greece the General Confederation

of Workers has associated with the State and with employers organizations in

committeersquos formation on the specific problems of long-term unemployment

Similarly in Germany a similar national pact was proposed in Germany but not finally

agreed

ILO report also revealed that trade unions in Singapore cooperated with the

State and the employers in efforts to maintain full employment unions cooperated

with other social partners in attempt to set wages at levels which maximize

employment Unions are members of tripartite committees including National Wage

Council and in the past have accepted temporary wage cuts in order to save

employment About unions cooperation with employer or management ILO reported

that because of trend towards decentralization importance is given to Works Councils

and new institutions like this one example is of Italy where the trade union

movement in agreement with the State and employers associations has created a new

institution in the workplace and all workers can elect representatives from within or

outside the union Majority of seats (in this have been) won by the unions The

employers are reportedly satisfied with the new institutional structure for workers

representation The other example is of South Africa where workplace forums were

created in 1996 in order to establish joint decision-making and consultation between

management and workers at shop floor level

Virmani and Rao (1999) expressed that responsible trade unions in Singapore

are one of attractions of doing business in Singapore because with industrialization

process trade unions have developed disciplinary spirit therein and became conscious

to develop the country economically

48

Wong (2000) also wrote about unions in Singapore that the unionsrsquo approach

to industrial relations moved from conflicting to cooperative after independence of

Singapore And during recent economic crisis the importance of constructive tripartite

relations and the positive role of the labor movement has been highlighted when many

union leaders had been involved in working out mutually acceptable measures to

overcome the recession in 1986 and they reached on a consensus when Government

union leaders and employers were able to gain worker support for wage cuts

Hirsch and Schumacher (2000) referred the analysis of Freeman and Medoff

1984 concluding that Unions have had success in pushing for workplace mandates

applicable to both the union and nonunion workforce as there is strong public demand

for many forms of protection in the workplacerdquo

Hence Aidt and Tzannatos (2001) wrote that unions facilitate worker-

participation and worker-manager cooperation in the workplace This can have

efficiency-enhancing effects that jointly benefit workers and management

Yates (2001) expressed promising views about role of unions in faster growth

of New Economy that unions can overcome certain inefficiencies inherent in the

marketplace and at the same time helping individual workers to fulfill their goals more

easily and at less personal cost However Yates stressed on transformation of unions

which can begin to provide an array of personal services to members and help to

negotiate and to finance contract provisions that provide skill training for workers

Presently when new employers are promoting multi-skilling for workers unions can

help the employers to attain greater flexibility by agreeing to eliminate job

descriptions and allow employers to assign workers to a variety of jobs Unions can

also support employers in their efforts to achieve greater time flexibility through the

implementation of longer work shifts and more elastic shift scheduling and they can

agree to allow the employer to schedule mandatory overtime albeit at premium pay

Unions encouraged higher wages and protected economy in USA About the

union role in economic depression of 1930s Lichtenstein (2002) quoted from his book

State of the Union A Century of American ldquoin the 1930s as political leaders saw the

value of unions Unions offered the opportunity to protect and encourage higher

49

wages resulting in increased consumption and a stronger economy Where the

Depression was seen as the failure of American capitalism labor unions offered a

countervailing force both economic and political Industrial democracy re-enforced

political democracy and so unions were seen especially by the Roosevelt

Administration as important pillars of the American identityrdquo

Labor unions are also extending cooperation in Sustainable Development

According to Conference on Sustainable Development (2001) trade unions want to

cooperate with local and national governments international agencies and other Major

Groups to bring about patterns of decision-making that are consistent with the goals

of sustainable development (CSD 2001)

About Europe Knox (2004) wrote that strikes are rare in Germany and in Volks

Wagens 67-year history there has never been a strike only warning demonstrations to

pressure management Therefore in Germany working days lost to strikes run about

five per 1000 employees a year vs about 43 days in the United States But there have

been several strikes in Germany and elsewhere in Europe in recent months as workers

protest company demands for longer workweeks for the same or less pay The

demonstrations however have been short-lived and the unions usually have backed

down against the threat of layoffs or job relocations Therefore in recent contracts

unions cooperated and gave several concessions to employers such as at Karstadt

Quelle a big retailer in Germany trade unions agreed to a three-year wage freeze in

exchange for a promise the company would cut 5500 jobs through attrition not firing

Similarly in France workers at a Robert Bosch car parts factory voted to work an

extra hour a week without pay to stop the car components company from moving the

work to the Czech Republic

50

25 STRATEGIES AND TACTICS OF UNIONS

For the achievement of objectives of securing benefits for the workers and

solution of their problems unions adopt peaceful and violent means and succeed when

they have strength or fail in their struggle if they have no strength Numerous

researches have highlighted it

Jose (2000) is of the opinion that the unionrsquos capacity to influence depends on

their strength and support among the unionized and non-unionized sections of society

Bryson (2001) opined that the employer and employeesrsquo perception of

legitimacy of union in representing workers interest is influenced by higher union

density and where unions represent most of the workforce they can represent workers

interest with a strong voice

Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos

view large and centralized unions are more functional and influential than fragmented

unions

251 Source of Strength of Unions

Thomas (1999) is of the view that trade union organizations largely derive

their characteristics heritage identity and future strategic options from the parameters

that are set by the country in which they function Jose (2000) expressed that union

success depends on its capacity to incorporate workers rights and interests into

legislation or other regulatory instruments of the labor market For building

institutional capacity the following objectives have been prominent on the agenda of

unions (i) legislative provisions guaranteeing job security unemployment insurance

and special benefits on termination of employment and social security providing for

health care and pension schemes (ii) multi-employer agreements on employment

wages working conditions hours of work and non-wage benefits of workers (iii)

ability to influence economic and social policies through consultation and dialogue

with employers and public authorities

51

2511 Unionsrsquo density and their strength to effect

Jose (2000) wrote that labor legislation collective agreements social security

and minimum wages already in place are clear indicators of the strength and influence

of trade unions They reflected a capacity to influence public opinion and mobilize

action in support of the demands of their constituents In developing countries notably

in Asia unions have had significant achievements in maintaining or upgrading

statutory safeguards on employment and working conditions Nonetheless such gains

are mostly restricted to workers in the formal sector

But to cast influence the unions should be stronger and unions can be stronger

if they have a minimum density called threshold density

Aidt and Tzannatos (2001) are of the view that Industries with high overall

union density tend to have a higher wage markup Mishel and Walters (2003) found

that 30 to 40 is the minimum level of unionsrsquo density to produce any threat effect

Therefore the unionization of 20 in a particular industry may have no impact but

40 unionization may be sufficient to make employers aware of union organizing and

union pay and practices Unionrsquos presence of 60 to 70 may provide as strong a

threat or ability to set standards as unionization of 80 or more Therefore unions

can put a greater effect when density is higher

252 Peaceful Means of Achieving Objectives

Unions adopt peaceful means like negotiation reconciliation arbitration and

suits in the courts as well as violent means like tension strikes and processions for

achieving objectives of securing benefits for workers

In Japan trade unions have achieved improvement through collective

bargaining on pay working hours fringe benefits and in house welfare programs

Unionsrsquo efforts have become more important in recent years (Inoue 1999)

Among the peaceful means of obtaining objectives is Collective Bargaining

Jose (2000) reported that the value of collective action initiated by unions for attaining

common objectives is now widely recognized by a broad spectrum of interest groups

52

But unions have moved from collective bargaining to voice in continental Europe and

Japan due to high density of unionism There is growth of trade unions from the

collective bargaining function towards a role dominated by voice and representation of

workers The broad membership base which unions commanded and the equitable

distribution which they promoted in major sectors and enterprises strengthened the

position of unions giving them more power to bargain or collaborate and to derive

successful outcomes

253 Violent Means

When the peaceful means are not successful in achieving the objectives then

unions go on strikes Unions have resorted to this option according to following

researches

Colman (2000) wrote about USA that in 1824 women and men in a textile

factory in Pawtucket Rhode Island led the countryrsquos first strike demanding the owner

to reverse his decision to increase work day by one hour and cut their wages After

four years women went on strike in Dover New Hampshire demanding the

elimination of ban on talking at work and fine to employees 125 cents for being one

minute late In 1831 1600 women tailors in union of tailorsrsquo society in New York

struck for higher wages In 1834 in Lowell Massachusetts over 800 looms and

spindle operating women in the textile mill called a strike to protest wage cut

In Israel Before 1995 the famous labor union Histadrut seldom resorted to

general strikes in the public sector but since July 1997 The New Histadrut has

called three extensive strikes In July 1997 strikes were of government owned

corporations in December 1997 and in September 1998 the entire public sector went

on strikes During the strike in September 1998 the threatened closure of Ben-Gurion

International Airport contributed to reaching an agreement (Nathanson and Associates

1999)

CLR reported that in June of 2000 workers at the Duro (a gift bags

manufacturing firm) plant in Rio Bravo (Mexico) went on strike to establish an

independent union and forced the reinstatement of their elected leaders who were

53

illegally fired as a result of strikes Mexican government officials in August 2000

granted official registration as first independent union to the Duro workers (Carty

2003)

Unions weakened due to effects of Multi National Companies and

Globalization According to UNDP (2000) report conventional weapons of strikes

boycotts and demonstrations became useless because of emergence of MNCs and

Globalization unionrsquos power has weakened In the past labor groups could combat

with economic power of employer by seeking redress at the national level appealing

to sympathetic politicians and government officials to enact protective labor

legislation or alternatively labor unions could resort to offensive strategies like

strikes boycotts and demonstrations Unions could rely on this power because capital

in the past was immobile but in present era if these techniques are exercised capital

will move across the borders therefore the labor unionrsquos conventional weapons

strikes boycotts and demonstrations have became ineffective and unions have been

rendered weak

26 CORRUPTION OF UNIONS

Though unions exerted efforts for securing benefits gaining respect and

building a fearless atmosphere for their workers but unionsrsquo history is also plagued by

corruption which has been brought to light by following researches

261 Corruption and Selfishness of Officials

Ware (1935) wrote that labor leaders in USA are trade unions officials and

they have been accused of the complete unconcern for any worker but the members of

their own craft union interest in holding their own job a close association and

cooperation with employers in dealing with industrial problems and racketeering

For unions in Pakistan Khan (1992) expressed that the numerical increase of

trade unions leads to personal rivalry of union leaders competing for command over

small unions The trade unions leaders fight among themselves instead of fighting

54

against management or government and every leader is status seeker caring more for

his own prestige and image than to cause of common worker or unionism

Pencavel (1995) opines about union pluralism that a policy permitting the

formation of more than one union per enterprise will lead to disputes and rivalry

among unions He quoted the example of the situation in the Indian sub-continent

where the strength of unions is sapped through disputes among themselves rather than

in bargaining with employers

Bezuidenhout (2002) narrated that in South Africa Industrial and Commercial

Workersrsquo Union (ICU) was also plagued by internal corruption and bureaucratization

According to a report of Weinstein (1996) in USA during two decades LIUNA

(Laborers International Union of North America) officials have recorded over 80

convictions for crimes ranging from racketeering to bribery extortion tax evasion

and even of attempted murder

Horowitz (1999) reported about USA that unionrsquos corruption is not a new

phenomenon but as government reports documented even in the 1920s among

construction trade unions in New York City a widespread corruption and racketeering

was also prevailing

262 Financial Corruption

Weinstein (1996) wrote the instances of unions financial corruption eg the

House Judiciary Committees Subcommittee on Crime (in USA) held hearings that

union official lent $100000 of LIUNA money to the Clinton Inaugural Committee

and in 1993 and 1994 the Laborers Political League (LPL) donated over $1 million to

Democratic Party congressional candidates During 1995 and the first quarter of 1996

the LPL has contributed $747000 to over 200 liberal congressional candidates

Weinstein and Wieglus (1996) expressed that unions keep the workers ignorant

from their rights for example Labor Secretary Robert Reich who frequently proclaims

the Clinton Administrations concern for workers rights told the AFL-CIO recently

that collective bargaining is not a privilege it is a right Yet the Administration has

55

cooperated with union officials to keep workers in the dark on their Beck rights They

further quoted example of AFL-CIO for the misuse of unionrsquos funds for political

campaigns as AFL-CIO has launched $35 million voter education project funded

mainly with mandatory union dues to defeat conservative members of the 104th

Congress

Horowitz (1999) brought in to light that the Federal Election Commission in

(USA) reported that soft donations by labor unions to national political parties

during the 1997-98 election cycle totaled some $8 million nearly all of it to the

Democratic Party

In the research report conducted in USA Sherk (2006) expressed that it is true

that union members elect their leaders but union leaders appear to pursue an agenda

disconnected from the concerns of their members Some unions are heavily involved

in political activism they spend their membersrsquo mandatory dues to elect candidates

favored by the union leadership which means union leaders pursue an agenda that

their members do not support Therefore several states have passed ldquopaycheck

protectionrdquo laws that require unions to obtain written permission from their members

before they can spend membership dues on political causes He further wrote that

unions received from their members annual dues averaging $125 per member in 2004

and used only a portion of that money to represent their members Americarsquos 10

largest unions used an average of only 30 percent of their dues to represent their

members and negotiate with employers and spent the other 70 percent on lobbying

political activities gifts grants overhead and compensation for their staff These

other activities might or might not reflect the priorities of the unionrsquos membership

Unions generously spend their membersrsquo mandatory dues on politics He quoted that

in 2005 a non-election year the AFSCME (American Federation of State and County

Municipal Employees) spent almost 20 percent of its budget on political activities and

lobbying The AFL-CIO spent 30 percent of its budget on the same causes In the 2004

elections both these unions gave over 97 percent of their donations to Democratic

candidates Despite of misusing members contributed funds union leaders do little to

inform their members of many of their activities and it is doubtful whether union

56

members would approve of many of the decisions of their leaders Misplaced union

priorities extend beyond six-figure salaries and comfortable retreats for union bosses

2621 Embezzlement examples

Horowitz (1999) quoted many examples of unionrsquos office bearers

embezzlement in his report such as Bernard Rubin president of South Floridarsquos

Laborerrsquos District Council was convicted in 1975 on embezzlement racketeering and

tax evasion He misappropriated more than $350000 in union funds Similarly in

April 1998 a federal court convicted Eileen Cibellis former longtime office manager

and fund administrator for the Bloomfield New Jersey-based District Council 10 of

the International Brotherhood of Painters and Allied Trades for embezzling more than

$400000 from union funds There are other examples such as Carol Sue Fisher a

former bookkeeper for the local Paintersrsquo union in Evansville Indiana in 1992

pleaded guilty to embezzling some $135000 from the union fund John Ducey the

former financial secretary and business manager of the Carpet Linoleum and Resilient

Tile Layers union received a prison sentence for embezzling more than $51000 A

federal jury of embezzling union funds found George Osley Jr secretary-treasurer of

Laborers Local 872 in Las Vegas guilty of embezzlement of unionsrsquo funds The

National Maritime Union (NMU) a representative of some 2000 unlicensed seafarers

working on US flag commercial ships deserves special mention as over the years it

has served as a private bank for its leaders In January 1997 NMU President Louis

Parise Sr had to resign and sever all connections to the union following his

conviction in federal court on racketeering and embezzlement to the tune of more than

$700000 Robert Hickerson former business manager of Local 919 in Quincy

Illinois in 1982 was sentenced to three years in prison for embezzling union funds

and hiring vandals to smash more than $250000 worth of equipment owned by non-

union contractors In Lancaster NH Paul Wilson former treasurer of United Paper

workers Local 61 in 1993 was sentenced for theft of more than $67000 in union

funds This year Robert Kellas a former official of an amalgamated Transit Union

local in Bellingham Washington pleaded guilty to embezzlement of up to $120000

from the union over a four-year period These were few examples otherwise report has

numerous other events worthy to be mentioned but they would render the thesis very

57

lengthy Horowitz in his report wrote for different types of unionrsquos corruption in USA

and quotes numerous events eg ldquoIn New York City in 1995 federal investigators

discovered that around $8 million had vanished from the pension fund of Teamsters

Local 875 Local 875 had a long history of corruption in the previous 25 years five of

its officers and financial advisers were convicted of embezzlement or accepting

payoffs to keep labor peacerdquo He further wrote ldquoFor good measure the AFL-CIO in

1957 expelled the Teamsters for corrupt practices in the light of widely-publicized

hearings before Government Operations Committee headed by John McClellan

Arkansas Democrat in the Senate

Sherk (2006) in his report about American unions also quoted examples of

suspected incomes of unionsrsquo leaders such as Gerald McEntee president of the

American Federation of State and County Municipal Employees earns $580000 a

year from the dues paid by his unionrsquos far less compensated members The president

of the National Education Association earns $439000 a year which is almost ten

times what the average teacher earns It means union elected leaders earn salaries

several times larger than those paid to members of Congress Unions also spent over

$7 million in 2005 to hold conferences and workshops at resorts including the

Pheasant Run Resort amp Spa near Chicago and the Palm Springs Riviera Resort in

California a use of funds which also may not reflect their membersrsquo priorities Sherk

further quoted that unions pay for political campaigns from members contributions

and Supreme court in a suit ldquocommunication workers versus Beck (1988)rdquo established

a precedent that workers can not be forced to donate to political causes and are

entitled to demand the refund of the portion of their dues spent for political cause but

unions erected roadblocks in front of the workers who wanted to exercise their Beck

right

263 Unionsrsquo Officers Monopoly

Union officials enjoy what amounts to a monopoly and these union

monopolies shielded from competition provide them lax from accountability toward

the people they serve and individual worker or a group of workers demanding

accountability from their union may be risking their jobs or safety Union funds to pay

58

nonexistent employees is a common way of rewarding friends at the expense of

dues-paying rank and file Horowitz (1999)

Brohawn (nd) is of the view that in some cases it can be fairly said that

unions have empowered their leaders not their members

Ghayur (1996-b) wrote that in Pakistan the labor leaders are feudal minded and

they never bothered to make their action accountable to the members

264 Bribes (Extortion and Pay-off)

Horowitz (1999) Revealed in his report with example that the Construction

trade unions are notorious for extortion from contractors by threatening labor

problems such as work slowdowns disruption sabotage or assault In the 1980s a

civil suit against Local 6A of the Cement and Concrete Workers of the Laborers

International Union of North America (LIUNA) alleged that the local its district

council their officers and certain organized crime figures extorted one percent of the

contract price from ready mix contractors by threatening labor problems For a while

that bought labor peace FBI investigation of building trades practices in Long Island

led to the indictment of the president of the District Council of Carpenters and five

other union officials connected to organized crime families for extorting more than

$100000 from a drywall contractor In Philadelphia Joseph Fiorelli founder and

former boss of Local 1955 of the Drywall Finishers Union was sentenced to more than

10 years in prison on extortion payoffs from contractors theft of union funds and

racketeering charges Fiorelli had extorted payments from 25 contractors from 1967 to

1991 Contractors testified that in exchange for their payments Fiorelli gave them

labor peace and allowed them to sometimes use nonunion workers and to delay or

avoid payments to the unions health and welfare fund

About Bribery for securing jobs Horowitz expressed that unions protect their

members from competition by non-union members But when a contractor or

employer decides to hire non-union labor the unscrupulous unions make life

uncomfortable for contractors until they hire union labor or allow the contractor to

hire nonunion labor--if the price is right In 1981 Louis Sanzo president of Local 29

59

of the Blasters Drill Runners and Mines Union in Queens NY affiliated with

LIUNA and the others took a combined $400000 in payoffs from construction firms

to buy labor peace The owner of a Florida-based construction firm said he tried to get

out of the deal but Sanzorsquos men threatened to kill him his wife and three children

The contractor would say in his bid that he needed 30 men and he would be paid for

30 men by the people who hired him to do the job But then Local 29 would send over

only 15 men They could keep the rest of the money

265 Sound Labour Relations at the Workplace no Important Concern of Employers and Unions

Unions some times do not take interest for sound labor relations - especially at

the workplace De Silva (1997) wrote that in many South East Asian countries and

republic of Korea sound labor relations have not been an important concern of

employers and unions

Bacon (2005) expressed that in USA George Meany and Lane Kirkland AFL-

CIO leaders treated unions as a business representing members in exchange for dues

while ignoring the needs of workers as a whole

CHAPTER 3

HISTORY AND LEGAL FRAME WORK OF UNIONIZATION IN PAKISTAN

According to Khan (1992) the Industrial Relations is an art It is an art of living

together for purpose of production Industrial Relations System is a sub system of the

society and studies the web of rules and regulations that binds the workers and

managers in a working group In industrial relations three actors play their part

employer through management workers through unions and consumer through state

However this system varies from country to country or region to region

ILO (1999) categorized the countries according to the degree of influence

exerted by trade unions on government policies In some countries unions have a

decisive voice and they can influence social pacts as well as the human rights agenda

through trade policies In other countries governments can ignore the unions without

incurring major problems so in these cases unions have little influence on social

policy or human rights concerns Therefore two different patterns of unionsrsquo role

emerge reflecting regional differences In developing countries trade unions are

searching for a new identity while in the industrialized countries they are trying to

gain lost ground through membership campaigns

Thomas (1999) asserted that trade union organizations largely derive their

characteristics heritage identity and future strategic options from the parameters that

are set by the country in which they function

Similarly Wong (2000) wrote that the industrial relations system in each

country is rooted in different historical political socio-economic cultural and

environmental contexts and it makes it difficult to replicate one system in another

context So this research is focused on the study of the role of Pakistani Labor Unions

working in quite different political cultural and legal environment

61

Khan (1992) expressed that every industrial relations system must fulfill

function of defining the rights responsibilities and objectives of the government

employers and employees and establishing power structure among them controlling

and channeling the responses of managers and workers that arise due to

maladjustment frustration dislocation and insecurities inherent in industrial process

and establishing a net-work of rules These rules include things like recruitment

commitment level of compensation the wage structure and procedure for settlement

of disputes

In Pakistan the system of industrial relations is legalistic and government is a

regulator and has framed out laws for industrial relations and unions are formed and

function in the same framework of laws These laws are of two types First type of law

concerns with union making and that is IRO 2002 and second type is of laws granting

rights to which unions have to get implemented and exact the rights granted therein

for workers Besides this unions have to struggle for the rights which are not given yet

in law and also have to get the laws promulgated for grant of these rights The history

of emergence and evolution of legal framework in Pakistan is given below

31 HISTORY OF LEGISLATION

According to Shafiq-ur-Rehman (2003) the history of Labor Legislation dates

back to 1875 when the government of Bombay appointed a Factory Commission on

whose recommendations the Factories Act 1884 was promulgated Committee of

Inquiry was appointed in 1906 and Factory labor commission in 1907 and upon their

recommendations Indian Factories Act 1922 was passed and subsequently Trade

Union Act 1926 and Trade Dispute Act 1929 were also passed

The laws governing the formation of unions in Pakistan have passed through a

process of evolution during last eighty years Their chronological evolutionary steps

are reported below

62

311 Laws Permitting Establishment of Unions

In 1914 in Indo-Pak subcontinent there were more than a million workers

employed in 2936 factories besides a large number of workers employed in railways

mines plantation and government departments who were originally peasants pushed

towards factories by poverty After World War - I (1914-1918) the economic

conditions of these workers went worse as wages could not keep pace with rise in

prices There was acute distress and discontent among the workers but the industries

developed over the period were experiencing prosperity This led them to form unions

to demand increase in wages

In 1919 ILO was established and that gave recognition as well as big support

to trade union movements Consequently a substantial number of unions were formed

in subcontinent of Indo-Pak (from which Pakistan parted in 1947) in 1920s but many

of them were temporary like strike committees being formed at the outbreak of

strikes and disappeared with its end The Indo-Pak Legislative Assembly passed a

resolution in 1921 in favor of registration and protection of trade unions As a result of

this resolution the legislature passed the Trade Union Act 1926 This act recognized

the workers rights to organize and form trade unions and laid down that any seven

persons or more forming trade unions could seek their registration of trade union and

this registered trade union was not to be considered a body unlawful in restraint of

trade However this law laid down penal clauses for violating any of the restrictions

imposed or for providing false information to the Registrar of Trade Unions After

independence in 1947 the government of Pakistan adopted the Trade Union Act 1926

and it remained in enforcement as major piece of legislation up to 1960 No doubt this

law has provided protection to the workers to combine for improving their

employment conditions and from being considered anti-state activity But the law has

a serious draw back that it was not providing unions the recognition of bargaining and

protection to workers from employersrsquo discrimination for union activity In 1960

Trade Union (Amendment) Ordinance 1960 was passed to amend and improve the

previous Act According to new law the recognition of trade union on employer was

obligatory and registered union was granted the right to negotiate with the employers

in matters concerning employment un-employment the terms of employment and the

63

conditions of work of all or any of its members The employer was bound to receive

and reply to letters from and to grant interviews to executives of union in connection

with any such matter The employer could with draw his recognition but with the

permission of labor court The previous maximum 50 percent limit of number of office

bearers from outsider was reduced to 25 percent in this law The trade unions were

required to maintain subscription register account books and membership list In this

law clauses for ldquounfair labor practicesrdquo both on the part of unions and employers and

the penalties in cases of breach of these clauses were also added Another ordinance

under name of Trade Unions (Amendment) Ordinance 1961 was passed to make

amendment to debar outsiders from becoming officer of union unless they were full

time paid employees of that trade union After the promulgation of Constitution of

1962 all the labor matters including legislation were transferred to provinces (East

Pakistan and West Pakistan) So a further ordinance ldquoWest Pakistan Trade Unions

Ordinance 1968rdquo was passed that made amendment to enhance powers of ldquoRegistrar

Trade Unionsrdquo empowering him to interfere with the conduct of unions even after its

registration to order an inquiry in the matters of unions if he thought that the funds of

a union were likely to be misappropriated The registrar could ask the union to curtail

the number of office bearers if it seemed disproportionate to the total number of its

membership Without the permission of the Registrar the employer was not to

discharge or dismiss or otherwise victimize an office bearer of trade union during the

pendency of its application for its registration The registration certificate could be

cancelled if the union participated in an illegal strike or go-slow A federation with

membership of at least seven registered unions could seek registration The registered

federation could have 50 percent of its office bearers from among the workers who

were not engaged industry or industries with which federation was concerned This

ordinance restricted the eligibility only to those unions which had minimum

membership of workers 10 percent of the total workmen employed or 100 whichever

is less The age to be office bearer of union was 21 years for employees and 25 years

for outsider Khan (1992)

64

312 Laws for Settlement of Disputes

Before IRO 1969 there were different sets of laws permitting union making

and for settlement of disputes The foremost law pertaining to settlement of

employers employee dispute was Employers and Workers (dispute) Act 1860 This

act provided for the determination of disputes relating to wages of workers employed

in the construction of railways canals and public works and breach of contract by

workmen was a criminal offence The cases of dispute were handled by magistrates

Later on Trade Dispute Act 1929 was enacted which provided for ad-hoc machinery

enabling the government to establish the Court of Inquiry and Conciliation boards

Industrial Dispute Act 1947 was enacted to provide hierarchy of institutions for

bringing out harmonious collective relations between the employers and the workmen

through work committees Conciliators board of conciliation Court of inquiry failing

which the settlement was arrived at by adjudication by a reference to an Ad-hoc

Tribunal The industrial establishments were classified in two categories Public

Utility Services and Non Public Utility Services Public Utility Services included any

Railway Service and section of an industrial establishment on the working of which

safety of establishment or workmen depended any postal telegraph and telephone

service any industry which supplied power water and light to public any system of

public conservancy or sanitation any undertaking establishment or installation

relating to defense services any service incidental to the operations of ports and any

such industries as transport coal cotton textile food stuff iron and steel as declared

by the government to be public utility service for a period of six months at a time

Industrial Dispute Ordinance 1959 changed industrial relations by further enlarging

the scope of term public utility services by including all types of industry later on

West Pakistan Industrial Dispute Ordinance 1968 was passed wherein provincial

government assumed the power to prohibit strike or lockout existing or apprehended

in public interest or for the maintenance of essential services or supplies (Khan 1992)

313 Industrial Relations Ordinance 1969

The Industrial Disputes Act (IDA) of 1947 was passed in April 1947 It made

no provision for procedures to determine the representative union what would

65

normally be a single bargaining unit Employers were under no legal obligation to

bargain with unions so there were no built-in incentives for either party to engage in

collective bargaining Therefore this right has been given in IRO 1969 The Industrial

Disputes Act 1947 also made it very difficult for the unions to call a legal strike

There were also problems in the Indian Trade Union Act of 1926 The Act allowed

any seven workers to register their trade union but made no provision for union

recognition (eg through a secret ballot procedure)

To remove the shortcomings of the labor legislation and address the workers

unrest because of political disturbance of ending years of regime of president Ayub

Khan and to create industrial harmony and peace government promulgated Industrial

Relations Ordinance (IRO) 1969 The objective of the IRO 1969 was to facilitate the

formation of trade unions and to provide simple procedure for their registration It was

primarily meant for regulating the employer employee relations and to determine

collective bargaining agent to arrange for the adjustment of conflicting interests by

collective bargaining to provide machinery (institutions) for just and equitable

settlement of disputes by conciliation voluntary arbitration and adjudication between

workers and employers with a right of representation by a registered trade union or

federation of trade unions or association of employees to prevent strikes and lockouts

and to provide relief of workmen in matters of employment relations

It was a comprehensive law and it consolidated the laws relating to

registrations of unions and laws relating to settlement of disputes Before this both

were dealt with different laws At different times establishments of unions were dealt

under Trade Unions Act 1926 Trade Union (Amendment) Ordinance 1960 Trade

Unions (Amendment) Ordinance 1961 and West Pakistan Trade Unions Ordinance

1968 where as trade disputes had been dealt under Employers and Workers (dispute)

Act 1860 Trade Dispute Act 1929 Industrial Dispute Act 1947and Industrial

Dispute Ordinance 1959

According to this law the formation of trade unions was expressly recognized

and there was provision for their registration A certified and duly elected registered

trade unions in industrial undertaking or an establishment could be taken as collective

66

bargaining agent and only collective bargaining agent could raise a dispute and take

bilateral negotiations within ten days of issue of charter of demand This law in

conjunctions with West Pakistan Industrial and Commercial (Standing Orders)

Ordinance1968 made it legally difficult and expensive to fire any worker and

developed a comprehensive measures relating to the terms and conditions of

employment and work procedure of handling grievances enforcement of discipline

and to regulate on the job relations within the establishment The IRO 1969 however

excluded the persons employed in Police Defence Services of Pakistan in the

Services and installation of Armed Forces and public services This Ordinance was

amended in 1971 to remove certain administrative difficulties amended twice in 1972

to insert provision of junior labor courts Amended in 1973 to allow 20 percent

workers participation in management and system of shop stewards was introduced

and a standing National Industrial Relation Commission (NIRC) was appointed Law

was amended in 1975 and a wage commission was created to determine the economic

disputes in banking industry and other financial institutions Again amended in 976 to

incorporate the principle ldquoone worker one unionrdquo to check the multiplicity of unions

to delete the provision of junior labor courts and to raise the strength of workers

representatives in Management Participation Committee to 50 percent Here the

power was taken to highest echelon through Joint Management Board To make the

works council to be a forum of joint negotiation law was amended in 1977 Final

amendment was made in 1979 This law has been repealed vide section 80 of IRO

2002

32 RIGHT OF UNIONIZATION

Right of unionization has been derived in Pakistan from UNO declarations

ILO conventions ratified by government of Pakistan and Constitution of the State

321 United Nationsrsquo Declaration of Human Rights

Articles 23 and 24 of the UNOrsquos Declaration are for workers favor besides

permitting the formation of labor unions (Wikipedia-b)

67

Article 23

1 Everyone has the right to work to free choice of employment to just and

favorable conditions of work and to protection against unemployment

2 Everyone without any discrimination has the right to equal pay for equal

work

3 Everyone who works has the right to just and favorable remuneration ensuring

for himself and his family an existence worthy of human dignity and

supplemented if necessary by other means of social protection

4 Everyone has the right to form and to join trade unions for the protection of his

interests

Article 24

1 Everyone has the right to rest and leisure including reasonable limitation of

working hours and periodic holidays with pay

322 ILO Conventions

To enable us to identify the basic union rights it is necessary to have a glimpse

of the International Labor Organization Conventions No 87 and 98

According to Convention No 87 workers and employers shall have full

freedom to organize themselves The organizations shall draw up their own

constitution and rules elect their leaders in full freedom and organize their

administration and activities without any interference by the government The

organizations shall not be dissolved or suspended by the administrative authority

which is the government

Government should impose no condition on the organizationsrsquo right to

establish or join a federation or confederation and to affiliate with international

68

organizations Granting of legal personality shall not involve restrictions on the above

rights Pakistan has ratified it on 14th February 1951

Under Convention No 98 it is the responsibility of the government to protect

workers against anti-union discrimination and victimization by employers and against

domination of workers organizations by any acts including financial contributions

The government should also establish machinery for the purpose of ensuring respect

for the right to organize Pakistan has ratified it on 26th May 1952 These rights

adopted by the ILO are more or less based on the lsquoUniversal Declaration of Human

Rightsrsquo Workers especially need these guarantees to protect themselves against

exploitation by employers who wield financial power and political influence

323 Constitution of Pakistan

The article16 and 17 of constitution of Pakistan have given a general right to

organize and form association to the workers

Article 16 is about freedom of assembly and says ldquoEvery citizen shall have the

right to assemble peacefully and without arms subject to any reasonable restriction

imposed by law in the interest of public orderrdquo

Article 17 is about freedom of association and says ldquoEvery citizen shall have

the right to form association or union subject to any reasonable restriction imposed by

in the interest of sovereignty or integrity of Pakistan public order or moralityrdquo

33 PRESENT ENFORCED LAWS

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo

Presently trade unions are formed and function according to IRO 2002 This

ordinance was promulgated in 2002 to amend consolidate and rationalize the law

relating to formation of trade unions regulation and improvement of relations between

employers and workmen and avoidance and settlement of any difference or disputes

arising between them A summery of main provisions of this ordinance regarding the

right of unionization and protections given to unions their functioning functioning

areas and limitations in IRO 2002 is given here

69

1 It allows the formation and joining of trade unions to workers and formation of

association to employers (section 3) and allows these unions and associations

to join respective federations allows federations to join confederations and

these federations and confederations can affiliate with international

confederations (section 18) However this law restricts a worker to be a

member of more than one trade union at any one time Law also binds that

every collective bargaining agent union shall have to affiliate with any

federation at the national level registered with the National Industrial Relations

Commission within two months after its determination as collective bargaining

agent or promulgation of this Ordinance whichever is earlier

2 It specifies the registration process (section 4) requirements for registration

(section 5 and 6) cancellation of registration (section 12) and appeal against

cancellation (section 13)

3 It provides safety to office bearers of trade union from victimization in the

form of transfer discharge or dismissal for applying for registration (section

10) and fine up to 20000 rupees for violation (section 65)

4 It provides the facility of Collective Bargaining Agent to a single union if it

has members not less than one-third of the total number of workmen if there

are more than one unions then who wins the referendum (section 20) and

identifies the bargaining and non bargaining issues

In Pakistan Collective Bargaining has its own Perspective Shafiq-ur-Rehman

(2003) expressed that collective bargaining in Pakistan instead of the issue of

wage rise typically covers a much wider range of issues including pecuniary

terms of employment (such as non statutory allowances and benefits) and non

pecuniary conditions of employment including job security and working

conditions (such as safety of work place and methods of production)

5 To meet the expenses this law allows the unions to collect the subscription by

check-off (section 21)

70

6 It contains provisions about workersrsquo participation in the management of

establishment For this it permits the establishment of Joint Works Council

According to section 24 every establishment which employs fifty persons or

more shall set up a Joint Works Council consisting of not more than ten

members in which workers participation shall be to the extent of forty per cent

and the Convener of the Council shall be from the management and the

employers representatives shall be from amongst the Directors or their

nominees and the workers representatives shall be the office bearers of

collective bargaining agent The Joint Works Council shall deal the matters

like (i) improvement in production productivity and efficiency (ii) provision

of minimum facilities for the workers employed through contractors as are not

covered by the laws relating to welfare of workers (iii) promoting settlement

of differences through bilateral negotiations (iv) promoting conditions of

safety and health for the workers (v) encouraging vocational training within

the establishment (vi) taking measures for facilitating good and harmonious

working conditions in the establishment (vii) provision of educational

facilities for children of workmen

7 It defines industrial disputes and provides for negotiation between employer

and workers to reach settlement (section 25) conciliation in case negotiation

fails (section 26 to 29) Arbitration in case conciliation also fails (section 30)

and finally a court award binding on all parties (section 33) It also provides

facility of appeal in high court against labor courts awards (section 48)

8 It gives right of strike to workers and lock out to employers to press for their

just demands (section 31) and authorizes government to prohibit strikes in any

public utility service establishment (section 32)

9 It contains provisions about labor courts (section 44) their functions powers

procedure and awards (section 45 46 and 47)

10 It also provides provision about National Industrial Relations Commission and

its functions and powers for registration of industry wide unions and settlement

71

of their disputes (section 49 to 53) and dealing with unfair labor practices

(section 63 and 64)

11 It identifies unfair labor practices on the part of employers (section 63) and

unfair labor practices on the part of workmen (section 64) and penalties for

unfair labor practices (section 65)

It defines rights and duties of employers and rights and duties of workers

(Schedule II) as

Employers Rights

(a) Right to conduct business-The employer shall have the right to manage

control and use the property of his enterprise and conduct his business in any manner

considered appropriate by him

(b) Right to manage-The employer shall have the right to use available resources

including human resources efficiently and effectively in the best interest of the

enterprise

Employers Duties

(a) While exercising the right to conduct business and the right to manage the

enterprise the employer shall act in accordance with the law and shall comply

with the law faithfully

(b) The employer shall protect rights of the workers as guaranteed under the law or

secured to them by any award agreement or settlement in force

(c) The employer shall protect and safeguard the interest of his workers and take

measures within his resources for their socio-economic uplift and welfare He

shall create an environment congenial for enhanced productivity of labour and

maximum output of the enterprise

(d) The employer shall respect the right of the workers to employment wages

decent living and better quality of working life

72

Workers Right

(a) Right to work wage and welfare It is the right of a worker to work

according to the job assigned and to receive wages as per agreed terms and conditions

of employment and to such welfare benefits and safety measures as one is entitled to

according to law agreement settlement and award

(b) Right to freedom of association and collective bargaining and other rights

secured or guaranteed under this Ordinance and other laws Worker has inherent

right to trade unionism and collective bargaining and the right to enjoy the benefits

guaranteed to him under the law rules and regulations settlement award or

agreement

Workers Duties

(a) Worker will perform his duty as assigned by the employer or his

representative according to his best ability with due diligence care honesty

and commitment

(b) Worker will fully observe norms of organizational discipline

(c) Worker in exercise of his right will fully respect the rights of the employer

and will cooperate with him in the efficient performance of the business of the

establishment or enterprise as the case may be

332 Labor Laws Granting Rights

3321 Workmen compensation Act 1923

This act provides for the payment by certain classes of employers to their

workmen of compensation for injury or death by accident

3322 Factories Act 1934

It governs the working conditions of the industrial workers and consolidates and

amends the law made from time to time by provincial governments for regulating labor

73

in factories It is applicable to factories where 10 or more workers are working or were

engaged to work on any day of the preceding 12 months This legislation regulates

working hours paid holidays and conditions of employment of workers It also

provides for hygienic and safe working conditions and environment labor inspection

submission of various returns by employers penalties for violation of provisions of act

and employment of welfare officer by factories employing more than 500 workers

3323 Payment of wages Act 1936

This law defines wages and regulates the conditions of payment of wages to

workers It is applicable to workers employed in factories railways transport

plantation workshops and establishments of contractors According to this law

employer shall pay wages to workmen in the current currency on a working day before

the expiry of the tenth day after the expiry of the wage period and no wage period will

exceed one month

3324 The minimum wages Ordinance 1961

There was no law to provide for the fixation of minimum wages particularly for

large number of workers of smaller establishments who had no bargaining capacity

with employer With this consideration government of Pakistan Promulgated the

Minimum Wage Ordinance 1961 with the objective to create an institution to determine

minimum wage rates for different categories of workers in different industries

Consequently Tripartite Minimum Wage Boards were formed in all the provinces with

powers to examine the general price level ability of the establishment to increase

wages and other relevant factors for determination of minimum wages and refer them

to concerned provincial government

3325 Social Security Ordinance 1965

This law is applicable to all industrial and commercial establishments and

provides for a scheme of social security of insured employees and their dependents in

the event of sickness injury or death The employers pay contribution to the provincial

Social Security Institution at the rate of 7 of the wages of insured person

74

3326 The industrial and commercial employment (standing order) Ordinance 1968

This ordinance lays down the minimum terms and conditions of employment of

workers in industrial and commercial undertakings where 20 or more workmen are

employed or were employed during the preceding 12 months The ordinance provides

for payments of bonus group incentives schemes group insurance gratuity provident

fund termination and dismissal from employment redundancy re-employment of

redundant workers etc

3327 The companies profit (workersrsquo participation) Act 1968

This law is applicable to industries or establishments employing 50 workers or

whose paid up capital is Rupees 2 million or whose value of fixed assets is 4 million

Employers of these industries are required to allocate 5 percent out of their net profit

among the workers Any amount left over after distribution of the workers shares as

laid down under the rule is transferred to the Welfare Fund established under the

provisions of workers Welfare Fund Ordinance 1971

3328 The shops and establishments Ordinance 1969

It was enforced with effect from 30th June 1969 This ordinance was to amend

and consolidate the law relating to the hours of work over time weekly and festival

holidays annual casual and sick leaves time of payment of wages and other terms and

conditions of work and employment in shops and commercial industrial and other

establishments and matters connected therewith

3329 The minimum wages for unskilled workers Ordinance 1969

Government of Pakistan promulgated this ordinance in order to provide

minimum wages to unskilled workers of the industrial and commercial undertakings

employing 50 or more workers The minimum wages have been revised from time to

time Fixation of minimum wages during last fifteen years is given here

75

Period Minimum Wage in Pak Rupees

From Ist July 1993 1500-

From 1st July 2001 2500-

From 1st July 2005 3000-

From 1st July 2006 4000-

From 1st July 2007 4600-

From 1st July 2008 6000-

33210 Workers welfare fund Ordinance 1971

This law provides for establishment of workersrsquo welfare fund for providing

residential accommodation financing other welfare measure including training re-

skilling and investment in securities approved by government For this fund initial

contribution of 10 crores rupees (100 million) was made by Federal Government and

every industrial establishment having income of one hundred thousand rupees or more

in a year is required to pay 2 percent of its income in this fund

33211 Workers children (education) Ordinance 1972

This law provides the payment of Rupees 100- per annum per worker by

employer to the provincial government and government in return provides free

education up to matriculation level and thereafter in poly technique or vocational

institutes to the children of workers

33212 Employees cost of living (relief) Act 1973

Government promulgated Employees Cost of Living (Relief) Act 1973

applicable to undertakings construction industries factories mines road transport

services newspapers establishments The purpose of this law was providing payment

of cost of living allowance to workers to overcome the adverse effects of inflation on

their purchasing power It had been amended and improved with the passage of time It

76

was promulgated first time on 17th September 1973 and enforced from 1st August

1973 but later on re-enacted by parliament in December 1973 Initially parliament was

empower to amend the allowance from time to time but later on Ministry of Labor as

empowered to grant increases in the Cost of Living Allowance through notification

33213 Employees old age benefit Act 1976

This law provides for old age benefits to persons employed in industrial and

commercial establishments This law is applicable to industry and establishment

employing 10 or more workers Employers contribute 5 of the wages of secured

person employed to the Old Age Benefit Institution The male employees after

attaining 60 years and female after 55 years can receive monthly pension The

survivors of the employees are also entitled for this

333 Labor Policies

The Industrial Relation laws of Pakistan were gradually improved through

amendments in existing laws and enacting fresh laws so that provisions may become

compatible to the changing socioeconomic conditions of the country and any further

change in future It was done through labor policies Since independence five labor

policies have been announced by the government in the years 1955 1959 1969 1972

and 2002 which laid-down the parameters for the growth of trade unionism the

protection of workersrsquo rights the settlement of industrial disputes and the redress of

workers grievances These policies covered a broad spectrum of issues and envisaged

to provide for permanent transformation of laws to meet the expanding industrial base

of the country These policies also provided for compliance with international labor

standards ratified by Pakistan The effects of policies are reflected in the

metamorphosis that the labor laws underwent after the implementation of these

policies Here is a brief of these policies

3331 First policy (1955)

It was announced in August 1955 for achieving following objectives

i The growth of healthy unionism

77

ii Settlement of disputes through joint consultation

iii Protection of workers rights

iv Maintenance of industrial peace and harmony in labor management

relations

v Speedy settlement of industrial disputes through adjudication and

effective implementation of awards and

vi Welfare of workers and avoidance of their victimization and

exploitation

3332 Second policy (1959)

It was announced in February 1959 under following guiding principles

i Promotion of healthy unionism

ii Promotion of sound labor management relation

iii Provision of settlement of industrial disputes through peaceful means

iv Provision of social amenities as health education wages etc in

relation of work

v Implementation of ratified ILOrsquos Conventions and recommendations

vi Suitable means for reducing unemployment

vii Creating employment agencies and formation of employment

programmes

3333 Third policy (1969)

Third policy was announced in 1969This policy resulted in the introduction of

legislation guaranteeing freedom of association and the right to collective bargaining

in accordance with ILO Conventions 87 and 98 ratified by Pakistan A system of

78

equitable distribution of gains was put in place in the form of enactment of laws

relating to workers welfare and minimum wage of workers Salient features of this

policy are listed below

i- Measures to encourage the growth of trade unions

ii- Introduction of concept of collective bargaining agent

iii- Strengthening the scope of collective bargaining agent by giving rights

of strikes and lockouts to workers and employers respectively

iv- Extension of the principles collective bargaining of public sector

workers

v- Fixation of minimum wages of workers

vi- Institutional arrangements for minimum wages board

vii- Establishment of workers welfare fund for providing residential

accommodation etc to workers and

viii- Mechanism for settlement of industrial disputes

3334 Fourth policy (1972)

It was announced in 1972 As a result of this policy reforms in the system of

labor legislation were made which envisaged workers participation in the

management extension in the scope of labor laws enactment of laws relating to

employees old-age benefits workers children education introduction of statutory

bonus and group insurance schemes establishment of quasi-judicial body namely

National Industrial Relations Commission and the procedure for redress of workers

individual grievances

The guiding principles of this policy were

i- Emphasis on workersrsquo participation in management of industry

79

ii- Workers participation in the management committees work councils

and joint management boards

iii- Strengthening of work council

iv- Increase of workers share in companies profit from 25 to 5

v- Ensuring job security

vi- Bonus payment as statutory obligation of employer

vii- Speedy redressal of individual grievances through shop stewards

3335 Fifth policy (2002)

The draft of this policy was announced in 1999 but policy was approved in

2002 The principles objectives and action programme of the policy concentrate on

the creation of relationship of trust and cooperation between employer and employee

under the strategy of least intervention by the state A visionary approach adopted in

the Labor policy is a focus on dignity of labor fair balance of bargaining power and

productivity-based work culture with fair and equitable distribution of gains and

proceeds of the industry amongst employees entrepreneurs and the society at large

Principles Objectives and Initiatives of policy are

1 Promotion of Healthy Trade Unionism

Healthy trade unionism based on freedom of association and an effective

collective bargaining system is a pre-requisite for industrial peace productivity and

socio-economic uplift of labor An environment for growth of healthy and responsible

trade unionism will be created by encouraging responsible and representative trade

unions

2 The system of bilateral and tripartite social dialogue shall be strengthened and

streamlined to promote industrial peace and harmonious labor-management relations

Support to bilateral and tripartite mechanisms for policy formulation self-regulation

80

and peaceful resolution of disputes Bilateralism is the core element of the new labor

policy

3 Regulatory authority of government to be exercised only when bilateral

mechanisms fail to resolve disputes

4 Consolidation and simplification of labor laws Existing voluminous labor

legislation is overlapping in its coverage in several areas and anomalous in definitions

and scope The variety and complexity of labor laws has contributed adversely to

industrial relations system Need for rationalizationconsolidation of the existing laws

was acknowledged in this policy Therefore it was proposed to simplify and

consolidate these laws into following six basic laws relating to

1 - Industrial Relations

2 - Conditions of Employment

3 ndash Payment of Wages

4 - Human Resource Development

5 - Occupational Safety and Health

6 - Labor Welfare and Social Protection

5 Structural legislative changes and restructuring simplification and

minimization of Labor Judicial System to provide speedy justice in labor

sector

6 Promotion of employeesrsquo social security and social insurance programs and

improvement of labor welfare institutions namely Workers Welfare Fund

Employees Old Age Benefit Institutions and Provincial Employees Social

Security Institutions

Institutions responsible for social protection social insurance and labor welfare

need to be made fully autonomous and effective by restructuring their respective

81

management boards to ensure adequate labor and employer representation and to

strengthen their tripartite character Policy-making coordination and monitoring of the

functioning of these institutions will be entrusted to these tripartite boards exclusively

7 Progressive extension of labor laws and welfare measures to informal and

unorganized sectors

8 Special emphasis on workersrsquo children education

9 Combating child and bonded labor

10 Elimination of gender discrimination to reinforce gender equality

11 High priority given to occupational safety and health Policy provides for

enactment of law covering all workplaces and establishment of a National

Tripartite Occupational Safety and Health Council to meet the objective of

providing adequate safety and ensuring compensation to workers

12 In this policy importance of research in labor related disciplines and labor

administration necessity of training for improvement of the system and up-

gradation of the personnel have been acknowledged Policy provides for re-

organizing the existing research and training institutes and measures to

promote research and training activities on most modern lines to meet the

present day requirements

3336 Labor Protection Policy 2005

This provides protection to workers in five areas

1 Basic Rights

2 Working Conditions

3 The Working Environment

4 Social Security

82

5 The Living Environment

3337 Labor Inspection Policy 2006

Above policies and laws although important in providing guidelines and

legally enforceable standards mean relatively little unless arrangements are in place to

ensure the highest possible degree of compliance with legal provisions

Therefore government of Pakistan framed out Labor Inspection Policy 2006

after a consultation between government officials employersrsquo and workersrsquo

representatives throughout the country It is also in compliance with ILOrsquos convention

81 ratified in 1953 by government of Pakistan

This policy provides a new direction for the nationrsquos labor inspection systems

to enable them to respond to new approaches on a wide range of labor protection

issues It is integrated labor inspection policy having a modern view of labor

inspection placing the emphasis on prevention protection and improvement with

scope in following three areas

1 The terms under which workers are employed including wages hours of work

allowances leave and other benefits established by law or agreement

including protection against unfair dismissal and protection against

victimization

2 The conditions under which work takes place with regard to the safety of

workers and the action required to identify eliminate minimize and control

safety hazards concerning machinery and equipment work processes and

substances including chemicals

3 The general environment in which work takes place with regard to heat and

ventilation dust noise illumination and related factors likely to contribute to

illness or disease arising from the workplace

In this policy institutional arrangements are proposed for its implementation

Accordingly the Ministry of Labor Manpower and Overseas Pakistanis will establish

83

a National Labor Inspectorate as the central inspection authority to serve as the focal

point for the nationrsquos inspection activities However government supports the system

of self-inspection and self-reporting which means self-responsibility with managers

and workers assuming responsibility for compliance with standards concerning safety

and health and working conditions in the workplace Under this approach managers

and workers take the necessary steps to address and resolve their problems and

disagreements over labor protection issues Where the enterprise has a trade union

self-responsibility takes place through collective bargaining where managers and

workers come together and talk to resolve their differences with the outcome of their

discussions leading to a negotiated and legally binding agreement

These laws and policies pave way of granting rights and benefits to workers

but these are got implemented by the efforts of labor unions In some cases they fix a

minimum level of benefit and unions exert efforts to secure more than this For

example a level of minimum wage is fixed by government but workers receive more

than this Government fixed maximum weekly hours 48 but unions got them reduced

and 48 hours are only in one organization and in all other organizations are less than

this

CHAPTER 4 RESEARCH METHODOLOGY

41 THEORETICAL FRAME WORK

This research study is aimed at investigating the role of labor unions in HRD

by exerting efforts in Pakistanrsquos organizations for exacting benefits for workers from

employer or management motivating and pursuing workers to perform efficiently for

interest of organization If workers are not benefited properly they would be under-

developed being physically weak unsatisfied and de-motivated so will be inefficient

human resource for their organization With inefficient human resource no

organization can gain progress The efforts of unions in this research are restricted

with in the organizations only

If unions are securing benefits for workers then workers should be satisfied

with them and if unions are also serving the ends of employers then employers should

also be satisfied with their role so unions will be successful in their role playing

Success of unions in playing the role for development of human resource of

organizations will be estimated by measuring satisfaction of workers on unionsrsquo

efforts for securing benefits for them and also satisfaction of employers on unions for

motivating workers for better performance ie productivity or efficiency increase and

making harmony at workplace

411 Research Model and Variable Formation

In Industrial Relations when unions are exerting efforts for securing interests

of their workers and also motivate workers to do job dedicatedly for employers benefit

then both workers and employer are satisfied with union then unions are successful It

means unionsrsquo success (Su) is function of satisfaction of workers (Sw) and satisfaction

of employer (Se) This is expressed mathematically in the form of equation

85

Equation -1

[Su = f (Sw Se)]

Bernard (1998) is of the view that an areas joblessness helps to determine the

ability of workers and unions to get wage rises and it is difficult to secure gains when

unemployment threatens the livelihood of workers Holley Jr et al (2001) expressed

that the ability to achieve economic gains in the form of higher wages and improved

benefits is one of the important criterion workers use to gauge the effectiveness of

unions

Therefore in determination of the facts about role of unions or success one

variable used in this research is satisfaction of workers (Sw) on the efforts of unions in

securing benefits for them

For determining satisfaction of workers (Sw) on efforts of unions in securing

benefits for them 15 variable giving direct benefits to workers have been made base

These fifteen variables are showing unionsrsquo efforts for securing workers benefit

Satisfaction of workers is a moderating variable Because satisfaction of workers is

independent variables for purpose of determining unionsrsquo success (Su) as unionsrsquo

success depends on it but it further dependent on 15 variables for its own

determination

The satisfaction of the workers on the performance of unions in this research is

estimated by taking lsquocombine mean of 15 independent variables as shown in the

following equation (ie equation 2) It is a lsquocombine meanrsquo because values of these

fifteen variable have also been calculated as arithmetic mean of the data collected for

variables

86

Equation 2

SW = (Wris + Fbft + Jsec + Td + Linc + Wcon + Ot +

Hfac + Ced + We + Wdf + Prb+ Rfac + Top + Ir) 15

Where Sw is Satisfaction of Workers

Wris is Wag-Rise

Fbft is Fringe Benefits (bonus Allowances)

Jsec is Job Security

Td is Time Reduction

Hfac is Health Facilities

Ced is Children Education

Ot is Over Time

Wcon is Working Conditions

Linc is Leaves Increase

Prb is Post retirement Benefits Pension

Rfac is Recreation Facilities

Top is Training opportunities

Wdf is Wage Difference Reduction

Ir is Informing Workers about their Rights

We is Workersrsquo Education

15 is number of variables in this equation

In unionsrsquo HRD Model equation satisfaction of employers is also essential

and according to lsquoexisting problemrsquo of this research unions have been alleged and

there are misconceptions about them so satisfaction of employers is also to be

determined

87

For determining satisfaction of employers on efforts of unions in protecting

their interest motivating workers for increase of productivity or efficiency of workers

and workplace peace and harmony have been made base These are two variables

measuring unionsrsquo efforts for employersrsquo direct benefit Satisfaction of employers (Se)

is also moderating variable Because it is independent variables for purpose of

determining unionsrsquo success (Su) as unionsrsquo success depends on it but it further

dependent on 2 variables for its own calculation This is expressed in equation 3

Equation 3

Se = (Pin + Wph)2

Where Se is Employersrsquo Satisfaction

Pin is Workersrsquo Productivity Efficiency improvement

Wph is Work Place Harmony

2 is number of Independent variables in the equation

[Sources of variables Bernard (1998) Wong (2000) Holley Jr et al (2001) Aidt amp

Tzannatos 2001) Mishel and Walters (2003) George (2004)]

The conceptual frame work is illustrated in Figure 1

About these variables extensive literature references have been cited in chapter

two Concerned sections of every variable are given below

88

Variables Concerned Sections in Literature Review Page

Wris 231 Wag-Rise 21

Fbft 233 Fringe Benefits 25

Jsec 234 Job Security and Employment 26

Td 235 Time Reduction (Duty Hours) 28

Hfac 239 Health Care and Social Security 31

Ced 2314 Children Education 39

Ot 236 Payment of Over Time 29

Wcon 238 Working Conditions 30

Linc 237 Paid Leaves 29

Prb 2310 Post retirement Benefits (Pension) 33

Rfac 2313 Recreation and Social Services 37

Top 2311 Training Opportunities 34

Wdf 232 Reduction in Wage Inequality 24

Ir 2315 Workers Awareness 39

We 2312 Workersrsquo Education 36

Pin 241 Productivity Efficiency amp Profitability 39

Wph 242 Work Place Harmony amp Cooperative Role 46

89

Figure 1 Showing sequence of variables effect

Information of rights

Worker Education

Training Opportunities

Recreation Facilities

Post retirement Benefit

Children Education

Health Facilities

Working Conditions

Over Time

Wage Rise

Fringe Benefits

Job Security

Leaves Increase

Time Decrease

Productivity Increase

Workplace Harmony

Employerrsquos Satisfaction

Workerrsquos Satisfaction

Unionrsquos Success

Wage Differences

90

412 Research Hypotheses

The null hypothesis depends on 17 variable hypotheses (H1 to H17) to be

proved true so before testing null hypothesis it is essential to test these variable

hypotheses

Hypothesis 1- Unions did not exert efforts for wage rise of workers

Hypothesis 2- Unions did not exert efforts for fringe benefits like bonus and

allowances of workers

Hypothesis 3- Unions did not exert efforts for Job Security of workers

Hypothesis 4- Unions did not exert efforts for Time decrease or offer

resistance against time increase of workers

Hypothesis 5- Unions did not exert efforts for exacting health facilities

Hypothesis 6- Unions did not exert efforts for workers education facilities for

children of workers

Hypothesis 7- Unions did not exert efforts for Overtime payment for over

working

Hypothesis 8- Unions did not exert efforts for better working conditions

Hypothesis 9- Unions did not exert efforts for Leaves increase or offer

resistance against leaves decrease

Hypothesis 10- Unions did not exert efforts for post retirement benefits like

pension

Hypothesis 11- Unions did not exert efforts for arranging recreation facilities

Hypothesis 12- Unions did not exert efforts for arranging training opportunities

Hypothesis 13- Unions did not exert efforts for decreasing wage inequalities

91

Hypothesis 14- Unions did not exert efforts for informing workers about their

rights

Hypothesis 15- Unions did not exert efforts for workersrsquo education

Hypothesis 16- Unions exerted no efforts for motivating workers to increase

productivity

Hypothesis 17- Unions exerted no efforts for workplace harmony

On the basis of above Variablesrsquo Hypotheses the null hypothesis has been

developed If the above statements are proved true then null hypothesis will be proved

true otherwise alternate hypothesis will be accepted

Hypotheses Statement

Null Hypothesis H0 Unions are not beneficial bodies in industrial relations

for HRD

Alternate Hypothesis HA Unions are beneficial bodies in industrial relations for

HRD

42 POPULATION AND SAMPLING

Labor unions of public and private sector organizations their members office

bearers of the unions employers or management or their representatives and union

non-member temporary employees of Pakistanrsquos organizations are population for this

study

The selection of sample was completed in two stages In first stage

Organizations to be studied were sampled and in second stage individuals to be

interviewed (respondents) were sampled

421 Stage-lsquoIrsquo Sampling of Organizations

Due to limitations of access to all the unions only the organizations of

Islamabad and Rawalpindi (twin cities) being capital territory were targeted for

92

sampling Because the Head Offices or Head Quarters of almost all national level

countrywide organizations are situated in the Islamabad Therefore samples of big

public semi public and private organizations having their head offices in Islamabad

the federal capital of the country and some private institutions have been picked

These organizations have different activities such as manufacturing exploring oil

refining printing and publishing telecommunication telecasting town planning and

rendering municipal services power supply gas supply and banking (see appendix D-

1)

422 Stage-lsquoIIrsquo Sampling of Respondents

From sampled organizations the office bearers of CBA unions as unionsrsquo

representative Human Resource officials as management or employersrsquo

representative permanent workers and contract temporary workers were sampled

4221 Sampling of union office bearers

For union views about unionrsquos role respective President or General Secretary

were interviewed from each CBA union General Secretary or President were sampled

because of being most influential and aware about unionrsquos working and performance

their fully engagement in negotiation with management comparatively more dealing

with workers and well awareness with unionsrsquo matters and problems (appendix A-11)

4222 Sampling of permanent (Unionized) workers

For the view point of workers who are the actual partners of the activity and on

whose behalf and for whose benefit unions are formed thirty to seventy workers were

randomly picked from each organization in their head offices different sub offices or

branches or field offices of the organization and personally interviewed by the

researcher on the designed questionnaires (appendix A-1 to A-10)

93

4223 Sampling of management

For management or employers views point about role of labor unions

respective human resource officials having official interaction and dealing with unions

were interviewed from each organization (appendix A-11)

4224 Sampling of temporary (Non-unionized) workers

Ten temporary workers who were not members of union were also randomly

picked and interviewed from organizations except PCP where no temporary worker is

employed

Sampling details of permanent and temporary workers are in appendix D-2

43 DATA COLLECTION INSTRUMENTS

Questionnaires were used as research instruments for data collection

431 Questionnaires and their Structure

Four questionnaires were framed (see appendices G1 to G-4) First for Office

Bearers of the unions (Questionnaires-1) second for Permanent Workers of

organizations (Questionnaires-2) third for Employers (Questionnaires-3) and fourth

for Temporary Workers not covered by unions (Questionnaires-4)

Questionnaire 1 2 and 3 comprise all 20 questions designed in the alignment

with research questions variables Questionnaire 4 comprises only 10 questions

In questionnaires 1 2 and 3 first 17 questions are common In questionnaire-1

from office bearers of union first fifteen questions are about their efforts for direct

benefits of workers such as 1- Increase of workers Wages 2- for any Fringe Benefit of

workers 3- for Job Security 4- for Duty hoursTimings 5- for increase of workers

Leaves 6- for payment of Overtime to workers 7- for improving Working Conditions

8- for Health care of workers and their families 9- for facilities provided for

Education of workers Children 10- for Post Retirement Benefits of Workers such as

pensions 11- for Recreational Facilities for workers 12- for Training facilities for

94

workers 13 is about Unionsrsquo efforts for decreasing workers officers Wagesalary

difference 14- is for unionrsquos efforts for informing workers about their Rights as

worker and 15- is about unions efforts for arrangements for workers education These

are questions giving direct benefit to workers

First these questions were asked from unionrsquos office bearers that what they did

for benefit of workers It is unionsrsquo claim of efforts exerted and the same questions

were asked in second questionnaire from workers whether unionsrsquo claim is right or

false and workers answer is to certify unions claim of efforts and satisfaction level of

workers will be a measure of unionsrsquo efforts In the third questionnaire the same

questions were asked from management whether unionsrsquo officials have really resorted

to management for gaining benefits for workers from management and answer of

management will be an evidence supporting or denying unionsrsquo claim

Two questions 16 and 17 are about unionsrsquo efforts for the benefits of

organization or employer as 16- efforts to increase workers Productivity Efficiency

and 17- is about unionsrsquo efforts to increase workplace Harmony

First these questions were asked from Unionrsquos office bearers that what they did

for benefit of employer or management actually it is their claim and the same

questions were asked in second questionnaire from workers whether unions claim is

right or falsersquo about exertion of unionsrsquo efforts and workers answer is an evidence for

confirming or falsifying unionsrsquo claim of efforts In the third questionnaire the same

questions were asked from management whether union motivates workers to benefit

employer (by improvement of productivity or efficiency of workers and work place

harmony) and what is satisfaction level of management on unionsrsquo efforts Answers of

management will certify unionsrsquo claim and its satisfaction level will be a measurement

of unionsrsquo efforts

In first questionnaire other three questions are general as 18- is about existence

of Work Council in the organization 19- is about unionsrsquo signing of charter of demand

and 20- is about provision of any training to office bearers as unionist by any agency to

conduct unionrsquos matters

95

In second questionnaire question 18 is about essentiality of unions 19 is about

inter union relations if there are two or more unions in the organization and question 20

is about comparison of unionsrsquo strength or weakness over the passage of time

In questionnaire lsquo3rsquo first 17 questions are common to questionnaire 1 and 2

While questions 18- is about existence of Work Council in the organization 19- is

about union signing charter of demand 20-is about Union acceptance of any wage cut

in difficult financial days of the organization for its benefit

Questionnaire lsquo1rsquo provides information about unionsrsquo claim of efforts exerted

for the benefits of workers as measured by variables eg wage rise fringe benefits job

security time reduction leave with pay payment of over time working conditions

health facilities children education facilities pension post retirement benefits

recreation facilities workersrsquo training decrease of wage salary difference of workers

and officers informing them about their legal rights and workers educational

opportunities It also provides information about efforts of unions for benefit of

organization or employer measured by the variables like their contribution for

improvement of productivity and efficiency and work place harmony By responding

these questions unionrsquos representative claim their efforts and struggle for securing

interest of employees and employer which is proved or disproved by the responses of

workers in questionnaire 2 and by management in questionnaire 3

Questionnaire 2 provides information about the responses of workers about the

claims of union office bearers about their effort for betterment of workers as measured

by variables eg wage rise fringe benefits job security time reduction leave with

pay payment of over time working conditions health facilities children education

facilities pension post retirement benefits recreation facilities workersrsquo training

decrease of wage salary difference of workers and officers informing them about

their legal rights and workers educational opportunities In this questionnaire workers

confirm or reject the unionsrsquo claims of exerting efforts for workers betterment and

stand witness for unions claim of exerting efforts for benefit of employer like

motivating for improvement of productivity and efficiency work place harmony In

this questionnaire permanent workers have been interviewed

96

Questionnaire 3 provides responses of management about the same 17

variables showing contribution of unions for benefit of employer by improvement of

productivity and efficiency and work place harmony (question 16 and 17) besides

showing management responses on questions about the benefit of workers In this

questionnaire employer or managementrsquos representative confirms or rejects the

unionrsquos claim of exerting efforts for the benefits of organization (questions 16 and 17)

and stand witness for unions claim of struggle for workers benefit (questions 1-15)

because when ever they seek any benefit for workers they have to demand it from

management Here heads of HR departments or members of management and senior

officials who have to deal with unions or unionized employees have been

interviewed because unions negotiate to them for securing benefits for workers

In fourth questionnaire temporary workers (non members or non covered

employees) provide the data about the variable of workers interest eg wage rise job

security time reduction improvement of working condition children education

facilities health facilities leave with pay bonus payment overtime payment effects

of unions efforts on temporary workers and essentiality of unions etc have been found

to know the difference between facilities of unionized and non unionized employees

Questions in these questionnaires regarding variables were designed to get

response in two forms I- Yes and No and then the satisfaction level of the respondent

on the provision of respective benefit Unions representatives in Questionnaire-I reply

all the 20 questions in Yes or No

Workers in Questionnaire-2 reply all the questions regarding 15 variables

(questions 1 to 15) measuring unions efforts for securing their benefits in Yes or No

and also by expressing their satisfaction level on five points scale ranging from very

unsatisfied to very satisfied but reply as witness in Yes or No by endorsing or

rejecting for questions (16 and 17) regarding management benefits as witness

Management representatives in Questionnaire-3 reply all the questions

regarding 2 variables measuring their benefits in Yes or No and also express their

satisfaction level on five points scale ranging from very unsatisfied to very satisfied

as main beneficiary (question 16 and 17) but for other questions which are for benefit

97

of workers (question 1 to 15) management representatives reply in Yes or No

endorsing or rejecting as witness the claims of union

All the data were collected from sampled respondents by researcher by paying

visits to every respondent

44 PREPARATION OF SATISFACTION LEVEL SCALE

In the present research researcher proposed 17 variables 15 measuring unionsrsquo

efforts for workers and 2 measuring unionsrsquo efforts for employersrsquo benefits On these

efforts the satisfaction of relevant respondent is measured on 5 points Satisfaction

Level Scale (SLS) on Likert Sacle as suggested by Emory (1980) and Cooper amp

Schindler (nd) In this scale weight 5 is allotted to Very Satisfied 4 is allotted to

Satisfied 3 is allotted to Indifferent 2 is allotted to Un-Satisfied and 1 is allotted to

Very Un-Satisfied

45 PILOT STUDY

To test the completeness of questionnaires with respect to information

collection and validity of the instruments a pilot study was conducted in first week of

December 2006 It was found that due to Name workers were reluctant to respond

Besides this the question number 6 regarding the overtime was not included and

questions 18 19 and 20 about unions essentiality inter union relations (between CBA

and non CBA unions) and comparison of unions strength or weakness as compared to

past were also not present So later on name was deleted and question 6 about

overtime and questions 18 19 and 20 were added

46 CODES AND ABBREVIATIONS

In tables due to space limitation formula terms column captions and row stubs

have been abbreviated For abbreviations see appendix E-1) Variable have also been

coded for equations preparation and for writing in the tables in appendix E-2

98

47 STATISTICAL METHODS APPLIED

Collected raw data were converted in to meaningful data by tabulation for

applying statistical techniques of Percentage Arithmetic Mean ( ) Chi square (χ2) and

Comparisons to draw conclusions Then these statistical techniques were applied Both

Statistical Techniques ie Descriptive Statistics in the form of Percentages and

Arithmetic Mean and Inferential Statistical Techniques in the form of Chi square χ2

were used Simple statistical methods have been used so that those readers who have no

statistical background specially workers unionsrsquo office bearers and employers may also

understand and take benefit of this study Data collected on YesNo responses were

analyzed by using percentages and data collected on five points satisfaction level Likert

Scale were analyzed by using Weighted Arithmetic Mean as suggested by Emory

(1980) and Chi square test

The fourth method of comparison by comparing data of permanent workers

with temporary workers was also used to see the unionsrsquo role for seeking benefits for

workers

The formulae of Percentage Arithmetic Mean and Chi square are

471 Percentage

Percentage of Yes responses = Number of Yes responses 100 Number of

total responses

And

Percentage of No responses = Number of No Responses 100 Number of

total responses

472 Arithmetic Mean

Simple Arithmetic Mean is calculated by formula

99

Arithmetic Mean of frequency data is ( ) = ΣfXi n when mean is of one

organization (organizational means) or is of one variable (variable mean) of all

the organizations

Here lsquoΣ fXirsquo is total of responses multiplied by their respective value (weight)

from 1 to 5 (1 for VUS 2 for US 3 for IND 4 for S and 5 for VS) as

suggested by Emory (1980)

For estimation of mediating variables Combine mean of the weighted

arithmetic means of all the variables is to be calculated by application of

formula

Combine Mean = Σ i N

Where Σ i is sum of all the arithmetic means of all the variables and N is

number of variables which is 15 for combine mean calculation of workersrsquo variables

and 2 for combine mean calculation of employer variables

By the value of combine mean of variable-wise means of all the variables the

success of unions will be estimated If the value of the combined mean lies in the

satisfactory region being greater than lsquo3rsquo the value of indifferent weight then unions

are successful and beneficial bodies and are playing role in HRD of the organizations

If it is equivalent to indifferent then they are tolerable and if it lies in the

unsatisfactory region being less than lsquo3rsquo being below indifferent level then unions are

failed organizations and workers or employers are not satisfied with them and we can

conclude that unions are non-beneficial bodies in the organizations and are playing no

role in HRD of the organizations

100

473 Chi Square (χ2)

Formula for Chi square is χ2 = Σ (fo-fe)2fe or

χ2 = Σ (fo-fe)2fe

Σ = (sum of values)

fo = (observed value) calculated by adding all the vales in a column

fe = (expected value) calculated by dividing grand total by number of

columns

df (degree of freedom) = (c-1) (r-1)

df stands for degree of freedom

fo stands for observed frequency

fe stands for expected frequency

c stands for column

r stands for row

In this research Chi square as suggested by Emory (1980) and Cooper amp

Schindler (nd) has been applied on the totals of the columns of variable pertaining to

workers only and not on variables for employers because of limited number of

responses

The level of significance selected for making inference about population was

005

If calculated value of Chi square is more than table value at 005 significance

level at respective degree of freedom then our statement of assumption for respective

variable will be rejected and alternative view will be established

101

474 Comparison

Comparison has been made of admissible facilities enjoyed by permanent

(unionized) workers with temporary (non-unionized) workers in two lsquocomparison

tablesrsquo These comparable facilities were Wage Rise Fringe Benefits (bonus and

allowances) Job Security Weekly Working Hours Working Conditions Children

Education Facility Health Facilities Miscellaneous Allowances and Yearly Leaves

48 CALCULATIONS BY APPLYING STATISTICAL METHODS

For analyzing the data methods of percentage calculation arithmetic mean

calculation and chi square have been applied

481 Percentage Calculation of Yes No Responses

Questions 18 19 and 20 in the questionnaire 2 were answered in Yes No For

estimation of views percentage method has been applied For question 18 about the

essentiality of unions for the organizations if total of percentages of lsquoYesrsquo answers is

more than 50 then it means majority of workers is acknowledging the need of unions

for the cause of workers If the percentage of Yes answers for question 19 about the

inter unions relations is more than 50 percent it means that unionsrsquo mutual

relationships are good For Question 20 about the unionsrsquo strength as compared to

unions in the past if the percentage of Yes answers is more than 50 percent it means

that unionsrsquo of today are weaker than unions in the past

482 Means Calculations

Arithmetic Mean has been calculated of five point satisfaction level of

respondents as described by Emory (1980) and Cooper amp Schindler (nd) by giving

Value 5 to Very Satisfied (VS) 4 to Satisfied (S) 3 to Indifferent (IND) 2 to Un-

Satisfied (US) and 1 to Very Un-Satisfied (VUS) and accordingly multiplying their

frequencies with their respective value Then adding them and dividing them by

respective total frequency ldquonrdquo In Organization wise means n is obtained by

multiplying number of respondents of that organization with number of variables as in

case of ARL for workers satisfaction it will be 35 15= 525 (here 35 is number of

102

respondents and 15 is number of variables) For variable wise mean for workerrsquo

variable n will be 525 which is total number of respondents for any variable being

sample size When mean is calculated for organization it is lsquoorganizational meanrsquo and

when calculated for variable (in variable wise calculation) it is lsquovariable meanrsquo Then

all the variable means are added to each other and divided by number of variables

(total number of variables for workers is 15) to calculate lsquoCombined Meanrsquo of all the

variables of all the organizations

Organizational mean of variables for management variables have been

calculated organization wise by adding weights of responses of that organization and

dividing the sum by 2 which is number of variables benefiting employer for any

organization

Similarly lsquovariable meanrsquo of variables for unionsrsquo efforts for employers were

calculated by adding weighted values of responses of all the respondents for every

variable and then dividing it by 10 then these all variable means were added to each

other and divided by 2 to calculate lsquoCombined Meanrsquo which is direct measure of

employersrsquo satisfaction and consequently of unionsrsquo success

If Combined Mean is below Indifferent level by bearing value less than 3 than

it means workers or employers of organizations are not satisfied with unions efforts

and unions are not successful so unions are not beneficial bodies for organizations If

Combined Mean is equivalent to lsquoIndifferentrsquo by bearing value equal to 3 then it

means unions workers or employers of organizations are neither happy nor unhappy or

number of satisfied and unsatisfied workers is equal So unions if exist have no benefit

or harm or if not existing even then have no benefit or harm but if Combined Mean is

more than ldquoIndifferentrdquo level then majority of workers or employers of organizations

is satisfied with their efforts so their existence is required and we can conclude that

unions are beneficial bodies for organizations

These means have been calculated for responses of workers and for responses

of employermanagement organization-wise of all variables as well as variable-wise

of all the organizations

103

At every stage may be Organization Means Variable Means or Combined

Mean if its value is below 3 (which is weight allotted to ldquoIndifferentrdquo response level)

then it shows clearly that union is not efficient and beneficial It will prove the Null

Hypothesis that unions are not beneficial bodies for organizations and it is to be

accepted If the Mean is above 3 then it shows that the union is efficient and its

presence is beneficial so null hypothesis is to be rejected and Alternate hypothesis is to

be accepted

483 Chi Square Applications

To see the significance and to test assumption statements for every variable

Chi square technique has also been applied for variables pertaining to workers at 005

level of significance as has been applied for testing of statements by Ahmed (2004)

Aleem (2004) Where calculated value of Chi square is more than table value then the

assumption statement is to be rejected and accepted the alternate view point for that

variable It is another parameter to check the efficiency and efforts of unions for

seeking benefits for their workers Chi Square has been applied only on responses of

workers and not on responses of management because of very small number of

respondents

484 Comparison Applications

Comparison has also been made of facilities availed by unionized workers with

non-unionized temporary workers to see their efforts whether facilities had been won

by unions efforts or it was merely blessing of employer or government If there was no

difference than unions were also not beneficial bodies but if unionized workers were

enjoying more facilities and better terms of employment than unions are beneficial

bodies in the organizations

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS

According to theoretical frame work fifteen variables have been targeted for

measuring the efforts of union for benefits of workers These are Wages-rise (Wris)

Job-security(Jsec) Time-decrease (Td) Working-conditions (Wcon) Children-

104

education (Ced) Health-facilities (Hfac) Financial-benefits(Fbft) Over time payment

(Ot) Leaves Increase (Linc) Post Retirement and pension benefits (Prb) Recreation

facilities (Rfac) Training opportunities (Top) Decrease of wage salary difference

gape of workers and officers (Wdf) Informing workers about rights (Ir) and Workers

education These variables have been measured at five scale satisfaction level ie Fully

Satisfied valued as 5 Satisfied valued as 4 Indifferent valued as 3 Unsatisfied valued

as 2 and Fully Unsatisfied valued as 1 The Frequency of variables has been multiplied

with concerned value and then valued frequencies added and their sum has been

divided with sample size of the concerned organization for calculation of organization

mean and with whole sample for sampled mean

For every variable as value of Indifferent satisfaction level is 3 so if sample

mean is 3 then it means union is neither beneficial nor non-beneficial but tolerable and

there is no harm of union if not giving any benefit and no loss if not existing If mean

is less than three than union is not beneficial body and if mean is more than 3 than

union is a beneficial body More it is bigger than 3 the more beneficial is the union for

workers or more union has put efforts for acquiring workers benefit

Combine mean of all the variables means is obtained by putting their values in

equation 2 Details of codes used in the equation is in appendix E-2

SW = (Wrise + Fbft +Jsec + Td + Wcon + Ced + Hfac +

+ Linc+ Ot + Prb + Rfac + Top + Wdf + Ir + We+)15

This combined mean is measure of satisfaction level of workers and a

component of unionsrsquo success equation lsquoSu = f Sw Sersquo If combined mean is above

3 (indifferent level) unions are successful with reference to putting efforts for workers

benefits and value of combined mean above 3 will be a scale of level of success If

combined mean is 3 then unions are neither successful nor harmful If mean is below 3

then unions are failed and there presence in the organization is not benefiting so there

existence should be avoided

105

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits

Two variables have been targeted for measuring the efforts of unions for

employersrsquo benefits

These are efforts to increase workers productivity or efficiency (productivity in

manufacturing efficiency in non manufacturing and services) (Pin) and efforts for

work place peace and harmony (Wph) The Frequency of variablesrsquo is multiplied with

concerned weight and then weighted frequencies are added and their sum is divided

with sample size for calculation of sampled mean

As weight of indifferent satisfaction level is 3 so if sample mean is 3 then it

means union is neither beneficial nor non-beneficial but tolerable and there is no harm

of union if not benefited If mean is less than three than union in not beneficial body

and if mean is more than 3 than union is a beneficial body More it is bigger than 3 the

more beneficial is the union for workers Weighted average of all the variables has

been obtained and then all these means have been put in the equation

Se = (Pin + Wph)2

Here 2 is number of variables This gives the combined mean of employersrsquo

variables Combined mean is measure of satisfaction of employer with the unions

If combined mean is three then union has neither benefit nor harm or equally

satisfying and un-satisfying if less than 3 then employer is unsatisfied union is not

beneficial body for the employer of the organization and if it is bigger than 300 then

the employer is satisfied so union is beneficial body for the employer of the

organization

CHAPTER 5

DATA ANALYSIS AND RESULTS

This chapter is dedicated to present and analyze collected data by applying

statistical operations

51 DATA PRESENTATION

Data obtained from respondents by asking questions 1 to 17 in questionnaire 1

2 and 3 are tabulated in appendices F-1 to F-10

In appendices F-1 to F-10 every table has 11 columns First column contains

coded name of variable Columns 2 and 3 show answers of workers about unionsrsquo

role column 2 contains number of respondents replying in Yes and column 3 contains

number of respondents replying in No Columns 4 to 8 express satisfaction level of

workers from very satisfied to very unsatisfied Column 9 represents unionsrsquo response

on the same question It is claim of union about the services they rendered and it is

answered in YesNo Column 10 contains the managementsrsquo answers on unionsrsquo

performance as witness for efforts exerted for benefit of workers and certifier for

variables for benefit of management itself Column 11 shows the numerical value of

managementrsquos answer of variables pertaining to employersrsquo interest protected by

unions Data for all other tables drawn for analysis have been taken from these tables

Replies of questions 18 19 and 20 of questionnaire 2 are presented in table in

appendix F-11 replies of question number 18 19 and 20 of questionnaire 1 are

presented in table in appendix F-12 and replies of question number 18 19 and 20 of

questionnaire 3 are presented in table in appendix F-13

511 Organization-Wise Description of Respondents

Data collected from respondents pertaining to questions numbers 1 to 17 of all

the organizations have been tabulated organization wise in the appendices F-1 to F-10

Their description is given below

107

5111 Description of respondents of ARL

For Attock Refinery Limited (ARL) for unionrsquos opinion general secretary of

the union in the presence of president for managementrsquos view point manager HR and

among workers 30 permanent workers and 10 temporary or contract workers were

interviewed in Head office and Refinery at Morgah Rawalpindi Because of

difficulties of gaining access to the workplace only 30 workers of different trades were

randomly contacted in the parking administrative offices and outside of refinery at

different times randomly Majority of workers were interviewed during breaks and

after end of duty (appendices A-1 and B-1) Ten temporary workers were interviewed

similar way

5112 Description of respondents of CDA

In Capital Development Authority (CDA) for unionrsquos opinion president of the

union for managementrsquos view point Deputy Director Labor Affairs and among

workers 70 permanent workers were interviewed in head office and at divisional and

directorates offices field complaint office and rest-house workers (appendices A-2

and B-2)

For temporary workersrsquo opinion ten temporary workers were interviewed in

different offices

5113 Description of respondents of IESCO

In Islamabad Electric Supply Company (IESCO) for unionrsquos opinion general

secretary of the union for managementrsquos views manager HR and among workers 70

permanent workers and 10 temporary or contract workers were interviewed in head

office in various circle offices (office of Executive Engineer) divisional offices (office

of Sub Divisional Officer) grid stations and customer services centers Islamabad and

Rawalpindi (appendices A- 3 and B-3)

108

5114 Description of respondents of KTM

In Kohinoor Textile Mills (KTM) for unionrsquos opinion general secretary of the

union for managementrsquos views manager HR and among workers 35 permanent

workers and 10 temporary or contract workers were interviewed in Head office and

workers residential colony at Rawalpindi Because of difficulties of gaining access to

the workplace only 35 workers of different trades were randomly contacted in the

colony and in surroundings of the factory (appendices A- 4 and B-4)

5115 Description of respondents of OGDCL

In Oil and Gas Development Company Limited (OGDCL) for unionrsquos opinion

General secretary of the union and for managementrsquos view point manager HR and

among workers randomly picked 50 permanent workers and 10 temporary or contract

workers were interviewed in head office Islamabad at store I-9 Staff College (OGTI)

Islamabad and in different oilfields (appendices A-5 and B-5)

5116 Description of respondents of PCP

In Printing Corporation of Pakistan (PCP) for unionrsquos opinion general

secretary of the union and for managementrsquos views point Director Administration and

from workers randomly picked 50 permanent workers were interviewed from head

office and printing press Islamabad There is no temporary worker in the organization

(appendices A-6 and B-6)

5117 Description of respondents of PTCL

In Pakistan Telecommunication company Limited (PTCL) for unionrsquos opinion

General Secretary of the union and for managementrsquos view point General Manager

Human Resource and among workers randomly picked 70 permanent workers and 10

temporary or contract workers were interviewed in head office G-8 Islamabad

divisional engineers offices telephone exchanges revenue offices customers services

centers in Islamabad and Rawalpindi and line men working in the field (appendices

A- 7 and B-7)

109

5118 Description of respondents of PTV

In Pakistan Television Corporation (PTV) for unionrsquos opinion general

secretary of the union and for managementrsquos view point controller HR and

administration and among workers randomly picked 50 permanent workers and 10

temporary or contract workers were interviewed in head quarter (administration office

head office) PTV Main telecasting Station F-5 Islamabad at PTV ONE and ETV at H-

9 Islamabad (appendices A- 8 and B-8)

5119 Description of respondents of SNGPL

In Sui Northern Gas Pipe Line Limited (SNGPL) for unionrsquos opinion General

Secretary of the union and for managementrsquos views manager HR and among workers

randomly picked 50 permanent workers and 10 temporary or contract workers were

interviewed in General Manager office I-9 Islamabad in different departments such as

construction department billing department connection department meter reading

department sales department recovery department administration department and

marketing department and in revenue offices of Saddar Rawalpindi and Satellite Town

Rawalpindi and workers in the fields (appendices A- 9 and B-9)

51110 Description of respondents of ZTBL

In Zarhi Tarraqqiatti Bank Limited (ZTBL) for unionrsquos opinion general

secretary of the union and for managementrsquos view point Senior Vice President

administration and HR and among workers randomly picked 50 permanent workers

and 10 temporary or contract workers were interviewed in head office Zero Point

Islamabad at zonal office G-7 Islamabad and in some branches (appendices A- 10 amp

B-10)

51111 Workers responses of the questions about essentiality inter unions relations and unions status as compared to past

To find out whether unions are essential in the organizations or not what are

inter union relationships of unions where if unions are more than one in the

organization and what happened with the strength of unions with the passage of time

110

workers of the organizations were asked questions 18 19 and 20 respectively

Responses of workers are presented in table in appendix F-11 Three organizations

ARL PCP and ZTBL have single union so in analysis of question 18 their respondents

will not be considered in sample

51112 Unionsrsquo office bearersrsquo responses of the questions about work council charter of demand and unionistsrsquo training

These responses are tabulated in table in appendix F-12 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

51113 Management responses about work council charter of demand and wage cut

These responses are tabulated in table in appendix F-13 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA

Here data tabulated in appendices F-1 to F-10 have been analyzed Tables have

been constructed for this purpose Tables 1 to 10 are meant for variables pertaining to

workers Where unions are claimer workers are certifier as actual party and

management is witness Every table comprise 7 columns first column contains

variables column 2 to 6 contain workersrsquo responses with satisfaction level valued

from 5 for very satisfied (VS) to 1 very un-satisfied (VUS) about any effort and

column 7 contains total number of respondents for any variable Total of all the

columns has been multiplied by its value to obtain valued total and valued totals of all

columns from 2 to 6 added (such as in table-1 total of column two ie 32 multiplied by

its value ie 5 so valued total came 160 and valued total of column three that is 944

valued total of column four that is 402 and valued total of column five that is 96 and

their grand valued total is 1602 ) and divided by number of all the responses (450

111

which is product of number of respondents ie 30 multiplied by number of variables

ie 15) to get organizationrsquos mean that is 356 It is measure of satisfaction of workers

on efforts of union of the organization for their benefits

Tables from 11 to 20 are meant for calculating arithmetic means of responses of

variables pertaining to employer and contain 3 columns Column one is for variable

name column 2 contains responses of employer and column 3 contains values of these

responses Values in the column 3 have been added and their total has been divided by

number of variables ie 2 to calculate mean of responses of employer It is really

measure of satisfaction of employer on efforts of union of one organization for

employerrsquos interest

521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES

Organization wise arithmetic means and percentages of all the organizations on

the basis of the variables pertaining to workers have been calculated below in tables 1

to table 10

112

Table-1 Responses of Workers of ARL Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 2 20 8 - - 30

Fbft 8 16 4 2 - 30

Jsec 8 18 4 - - 30

Td 16 14 - - 30

Linc 24 6 - - 30

Ot 20 10 - - 30

Wcon 4 22 4 - - 30

Hfac 20 6 4 30

Ced 2 14 10 4 30

Prb - 2 14 14 30

Rfac 2 10 8 10 30

Top 18 8 4 30

We 12 14 4 30

Wdf 6 8 12 4 30

Ir 16 12 2 30

Total = f 32 236 134 48 450

fXi 160 944 402 96 1602 Organizational Mean (ARL) = Σ fXi450= 1602450 = 356

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 356 which is more than 3 (Indifferent level) showing union of ARL is

exerting efforts for exacting benefits for workers

Union of ARL claimed for exertion of efforts for securing all benefits for workers and

management confirmed it (see column 9 and 10 of appendix F-1)

113

Table 2 Responses of Workers of CDA (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris 40 14 16 70

Fbft 62 6 2 70

Jsec 48 18 4 70

Td 36 32 2 - 70

Linc 35 33 2 70

Ot 30 32 8 70

Wcon 30 28 12 70

Hfac 40 14 16 70

Ced 13 48 9 70

Prb 14 50 6 0 70

Rfac 58 12 70

Top 10 20 40 70

We 28 34 8 70

Wdf 28 28 14 70

Ir 54 10 6 70

Total = f 14 504 381 151 1050

fXi 70 2016 1143 302 3531 Organizational Mean (CDA) = Σ fXi1050 =35311050 = 336

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 336 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts for exacting benefits for workers

Union of CDA claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for time decrease leaves increase

recreation facilities and workersrsquo education (see column 9 and 10 of appendix F-2)

114

Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris - 26 22 22 - 70

Fbft 2 12 56 - 70

Jsec 7 40 13 10 - 70

Td - 40 23 7 - 70

Linc - 40 25 5 - 70

Ot 36 20 14 - 70

Wcon 50 10 10 - 70

Hfac 26 24 20 - 70

Ced 9 44 17 - 70

Prb 4 46 20 - 70

Rfac 47 23 70

Top 22 34 14 - 70

We 36 24 10 70

Wdf - 2 37 31 - 70

Ir - 49 10 11 - 70

Total = f 7 382 391 270 1050

fXi 35 1528 1173 540 3276 Organizational Mean (IESCO) = Σ fXi1050 = 32761050 = 312

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 312 which is more than 3 (Indifferent level) showing union of IESCO is

exerting efforts for exacting benefits for workers

Union of IESCO claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for fringe benefits leaves increase

workersrsquo education and reduction of officers workers salary difference (see column 9

and 10 of appendix F-3)

115

Table 4 Responses of Workers of KTM (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris - 10 4 21 35

Fbft - 17 17 1 35

Jsec - 15 10 10 35

Td - 13 13 9 35

Linc - 10 16 9 35

Ot - 12 15 8 35

Wcon - 30 5 - 35

Hfac 6 25 4 - 35

Ced 4 20 11 - 35

Prb - 17 10 8 35

Rfac - 16 10 9 35

Top 22 13 35

We 12 17 6 35

Wdf 2 7 26 35

Ir 20 12 3 35

Total = f 10 219 173 123 525

fXi 50 876 519 246 1691 Organizational Mean (KTM) = Σ fXi525= 1691525 = 322

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 322 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts for exacting benefits for workers

Union of KTM claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for wage rise time decrease leave

increase overtime payment recreation facilities training opportunities and reduction

of officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

116

Table 5 Responses of Workers of OGDCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris - 35 15 - - 50

Fbft 2 34 10 4 - 50

Jsec - 45 5 - - 50

Td - 40 10 - - 50

Linc - 40 10 - - 50

Ot - 22 16 12 - 50

Wcon 4 33 10 3 - 50

Hfac 17 28 5 - - 50

Ced - 8 36 06 - 50

Prb - 27 13 10 - 50

Rfac 18 14 14 04 - 50

Top 4 19 20 7 - 50

We 21 19 10 - 50

Wdf 5 26 14 5 - 50

Ir - 34 12 4 - 50

Total = f 50 426 209 65 750

fXi 250 1704 627 130 2711

Organizational Mean (OGDC) = Σ fXi750 = 2711750 = 361

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 361 which is more than 3 (Indifferent level) showing that union of

OGDC is exerting efforts for exacting benefits for workers

Union of OGDC claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-5)

117

Table 6 Responses of workers of PCP (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 37 4 9 50

Fbft 33 8 9 50

Jsec 4 40 4 2 50

Td 40 4 6 50

Linc 38 7 5 50

Ot 37 9 4 50

Wcon 39 6 5 50

Hfac 40 5 5 50

Ced 11 16 23 50

Prb 5 30 15 50

Rfac 30 20 50

Top 24 26 50

We 30 20 50

Wdf 5 37 8 50

Ir 20 21 9 50

Total = f 4 375 225 146 750

fXi 20 1500 675 292 2487 Organizational Mean (PCP) = Σ fXi750 = 2487750 = 332

Weighted Arithmetic Mean of Satisfaction Level of the responses of workers

for all the variables is 332 which is more than 3 (Indifferent level) showing union of

PCP is exerting efforts for exacting benefits for workers

Union of PCP claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities

recreation facilities training opportunities workersrsquo education and reduction of

officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

118

Table 7 Responses of workers of PTCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 28 18 24 - 70

Fbft 14 16 40 70

Jsec 2 39 15 14 - 70

Td 40 20 10 - 70

Linc 36 24 10 - 70

OT 10 38 22 - 70

Wcon 36 24 10 - 70

Hfac 44 16 10 - 70

Ced 11 32 27 - 70

Prb 4 44 22 - 70

Rfac 40 30 - 70

Top 16 40 14 - 70

We 19 39 12 70

Wdf 32 38 - 70

Ir 18 34 18 70

Total = f 2 315 432 301 1050

fXi 10 1260 1296 602 3168 Organizational Mean (PTCL) = Σ fXi1050 = 31681050 = 302

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 302 which is very marginally bigger than 3 (Indifferent level) showing

that union of PTCL is exerting efforts for exacting benefits for workers but the

situation is hardly satisfactory and union is approximately at tolerance level Thus

PTCL union has much to do for workers

Union of PTCL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities post

retirement benefits recreation facilities (see column 9 and 10 of appendix F-7)

119

Table 8 Responses of workers of PTV (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 6 26 14 4 50

Fbft - 36 12 2 50

Jsec 7 39 3 1 50

Td 37 10 3 50

Linc 38 9 3 50

Ot 41 6 3 50

Wcon 39 11 50

Hfac 37 5 8 50

Ced 13 20 17 50

Prb 21 24 5 50

Rfac 10 34 6 50

Top 16 24 10 50

We 33 8 9 50

Wdf 23 14 13 50

Ir 30 10 10 50

Total = f 13 439 204 94 750

fXi 65 1756 612 188 2621 Organizational Mean (PTV) = Σ fXi750 = 2621 750=350

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 350 which is more than 3 (Indifferent level) showing that union of PTV

is exerting efforts for exacting benefits for workers

Union of PTV claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for recreation facilities (see column 9

and 10 of appendix F-8)

120

Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 7 30 10 3 50

Fbft 5 30 12 3 50

Jsec 5 34 11 50

Td 34 16 50

Linc 32 18 50

Ot 3 21 23 3 50

Wcon 3 40 4 3 50

Hfac 4 34 10 2 50

Ced 6 22 22 50

Prb 37 8 5 50

Rfac 16 30 2 2 50

Top 10 34 6 50

We 15 25 10 50

Wdf - 17 28 5 50

Ir 25 14 11 50

Total = f 43 395 237 75 750

fXi 215 1580 711 150 2656 Organizational Mean (SNGPL) = Σ fXi750 = 2656750 = 354

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 354 which is more than 3 (Indifferent level) showing that union of

SNGPL is exerting efforts for exacting benefits for workers

Union of SNGPL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for time decrease and leaves increase

(see column 9 and 10 of appendix F-9)

121

Table 10 Responses of workers of ZTBL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables

Wris - 32 14 4 - 50

Fbft 28 14 8 - 50

Jsec 26 20 4 - - 50

Td 28 16 6 - 50

Linc 28 14 8 50

Ot 16 12 22 - 50

Wcon 32 14 4 - - 50

Hfac 1 38 4 7 - 50

Ced 22 22 6 - 50

Prb 2 18 30 - 50

Rfac 28 22 - 50

Top 26 20 4 - 50

We 28 18 4 50

Wdf 2 20 22 6 - 50

Ir 4 34 7 5 - 50

Total = f 65 336 217 132 750

fXi 325 1344 651 264 2584 Organizational Mean (ZTBL) = Σ fXi750 = 2584750= 345

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 345 which is more than 3 (Indifferent level) showing that union of ZTBL

is exerting efforts for exacting benefits for workers

Union of ZTBL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-10)

122

522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES

Organization wise arithmetic means of all the organizations on the basis of the

two variables pertaining to management have been calculated below in tables 11 to

table 20

Table 11 Responses of Management of ARL

Management Responses

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (ZTBL) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing that union of

ARL is exerting efforts in exhorting workers to work for the interest of employer

Therefore union is successful

123

Table 12 Responses of Management of CDA

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (CDA) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts in exhorting workers to work for the interest of employer

124

Table 13 Responses of Management of IESCO

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph FS 5

Total 9

Mean 92 = 45

Organizational Mean (IESCO) = Σ Xi2 = 92 = 45

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 45 which is more than 3 (Indifferent level) showing union of IESCO

is exerting efforts in exhorting workers to work for the interest of employer

125

Table 14 Responses of Management of KTM

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 84 = 400

Organizational Mean (KTM) = Σ Xi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts in exhorting workers to work for the interest of employer

126

Table 15 Responses of Management of OGDC

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 3 5

Organizational Mean (OGDC) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL

is exerting efforts in exhorting workers to work for the interest of employer

127

Table 16 Responses of Management of PCP

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PCP) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is

exerting efforts in exhorting workers to work for the interest of employer

128

Table 17 Responses of Management of PTCL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph ND 3

Total 6

Mean 62 = 30

Organizational Mean (PTCL) = Σ Xi2 = 62 = 30

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 3 which is equivalent to Indifferent level showing employer of PTCL

is at indifferent level and union is tolerable for employer Here again unionsrsquo

performance needs much improvement

129

Table 18 Responses of Management of PTV

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PTV) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PTV is

exerting efforts in exhorting workers to work for the interest of employer

130

Table 19 Responses of Management of SNGPL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (SNGPL) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL

is exerting efforts in exhorting workers to work for the interest of employer

131

Table 20 Responses of Management of ZTBL

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 82 = 400

Organizational Mean (ZTBL) = Σ fXi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is

exerting efforts in exhorting workers to work for the interest of employer

132

53 VARIABLE-WISE ANALYSIS

In this section performance of unions has been estimated by measuring

satisfaction level of respondents ie workers and employers in the lights of their

responses for every variable by applying arithmetic mean and Chi squire

Mean of satisfaction level of workers of all the sample for all 15 variables has

been calculated individually in tables from table 21 to table 35 and then combine mean

of satisfaction level of all variable has been calculated in lsquotable 36rsquo by adding these

individual variable means and dividing it on 15 which is total number of variable

In tables 21 to 35 totals of columns 3 to 7 have been multiplied by their

respective value (given in top row stubbed lsquoValuersquo) to obtain valued total and these

valued totals of all columns have been added and divided by lsquoNrsquo which is total of

respondents (total of sample) and equal to 525 the outcome is lsquovariable meanrsquo for

concerned variable This mean measures the satisfaction level of all the sampled

workers on the efforts of unions exerted for that single benefit

Chi square test has been applied on 15 variables in tables 37 to 51 on totals of

columns fetched from tables 21 to 35 respective variable at significance level of 005

and degree of freedom according to data of variable Calculated values of Chi square

have been compared with table value at 005 significance level and respective degree

of freedom In case calculated value is greater than table value the hypothesis for that

variable is to be rejected and alternative view is to be accepted

133

531 MEAN CALCULATION OF VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERSrsquo BENEFITS

Variables that are measuring unionsrsquo efforts for securing benefits for workers

are fifteen These have been analyzed by constructing tables and calculating their

arithmetic mean

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 21 Mean calculations-wage rise (Wris)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 20 8 - -

CDA 70 40 14 16

IESCO 70 - 26 22 22 -

KTM 35 - 10 4 21

OGDCL 50 - 35 15 - -

PCP 50 37 4 9

PTCL 70 28 18 24 -

PTV 50 6 26 14 4

SNGPL 50 7 30 10 3

ZTBL 50 - 32 14 4 -

Total (f) 525 15 284 123 103 -

fXi 75 1136 369 206 - 1786

Variable Mean = Σ fXi 525 =1786 525 = 340

134

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization (ten organizations) for Wage rise of workers

is 340 which is bigger than 3 (Indifferent Level) showing unions as a whole have

exerted effective efforts for rise in wages of worker

Efforts of unions for wage rise can be estimated from this fact that at time of

survey (December 2006) minimum wage was Rupees 4000 but 324952 workers

were earning wages between Rupees 5000 and 10000 and 4952 between 10000

and 20000 and 118 percent were getting wages even more than rupees 20000

(Appendix C-3) Rise in wages was 15 to 35 except of KTM (see Appendix C-1)

This is really an achievement at the part of labor unions proving their success

Out of 525 respondents 15 were very satisfied 284 satisfied 123 indifferent

and only 103 were unsatisfied (see Table 21 and Figure2)

Management of all the organizations Except KTM also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

So Hypothesis 1 that unions did not exert efforts for wage rise of workers is

rejected and alternate view is established

Figure-2 - Satisfaction Level of Workers on Wage Rise

Very Satisfied 15

3

Satisfied 284 54

Indifferent 123 23

un-Satisfied 103 20 Very Satisfied

SatisfiedIndifferentun-Satisfied

135

Hypothesis 2 (H2) Unions did not exert efforts for financial benefits like bonus of Workers

Table 22 Mean Calculations - Bonus (Financial Benefits) (Fbft)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 16 4 2 -

CDA 70 62 6 2

IESCO 70 2 12 56 -

KTM 35 - 17 17 1

OGDCL 50 2 34 10 4 -

PCP 50 33 8 9

PTC) 70 14 16 40

PTV 50 - 36 12 2

SNGPL 50 5 30 12 3

ZTBL 50 28 14 8 -

Total (f) 525 15 272 111 127

fXi 75 1088 333 254 1750

Variable Mean = Σ fXi 525 =1750 525 = 333

136

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Fringe Benefits (Bonus) of workers is

333 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for obtaining bonuses for worker So Hypothesis 2 that

unions did not exert efforts for financial benefits like bonus of workers is rejected and

alternate view is established

Except PCP workers of all other organizations are getting bonuses and in some

organizations bonuses are two or more ARL paid 5 and KTM has paid 4 bonuses in

previous charter (Appendix C-1) ARL KTM and OGDCL pay 5 percent of their

profit to workers and KTM besides this also makes payment to social security and 5

percent equivalent of workersrsquo salary to Employees Old Age Benefit department

(Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Out of 525 respondents 15 were very satisfied 272 satisfied 111 indifferent

and only 127 were unsatisfied (see Table 22 and Figure-3)

Management of all the organizations except IESCO also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

Figure-3 - Satisfaction Level of Workers on Financial Benefits

Very Satisfied 15

3

Satisfied 272 52Indifferent

111 21

un-Satisfied 127 24 Very Satisfied

SatisfiedIndifferentun-Satisfied

137

Hypothesis 3 (H3) Unions did not exert efforts for Job Security of workers

Table 23 Mean Calculations Job Security (J-sec)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 18 4 - -

CDA 70 48 18 4

IESCO 70 7 40 13 10 -

KTM 35 - 15 10 10

OGDCL 50 - 45 5 - -

PCP 50 4 40 4 2

PTC) 70 2 39 15 14 -

PTV 50 7 39 3 1

SNGPL 50 5 34 11

ZTBL 50 26 20 4 - -

Total (f) 525 59 338 87 41 0

fXi 295 1352 261 82 1990

Variable Mean = Σ fXi 525 =1990 525 = 379

138

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Job Security of workers is 379which is

bigger than 3 (Indifferent Level) showing unions as a whole have exerted effective

efforts for Job Security of worker

Out of 525 respondents 59 were very satisfied 338 satisfied 87 indifferent and

only 41 were unsatisfied (see Table 23 and Figure-4)

Employees of all the organizations under study are enjoying job security due to

unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts of

unions for job security only 41 workers were unsatisfied (Table23)

Management of all the organizations also confirmed that unions have been

exerting efforts for workers job security (see tables in appendices F-1 to F-10 column

management responses)

So hypothesis 3 that unions did not exert efforts for Job Security of workers is

rejected and alternative view is established

Figure-4 - Satisfaction Level of Workers on Job Security

Very Satisfied 59

11

Satisfied 338 64

Indifferent 87 17

un-Satisfied 41 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

139

Hypothesis 4 (H4) Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 24 Mean Calculations Time Reduction (Td)

Satisfaction Level No VS S IND US VUS Σ fXi

values (Xi) 5 4 3 2 1

Organization

ARL 30 16 14 - -

CDA 70 36 32 2 -

IESCO 70 - 40 23 7 -

KTM 35 - 13 13 9

OGDCL 50 - 40 10 - -

PCP 50 40 4 6

PTCL 70 40 20 10 -

PTV 50 37 10 3

SNGPL 50 34 16

ZTBL 50 28 16 6 -

Total (f) 525 - 324 158 43

fXi 1296 474 86 1856

Variable Mean = Σ fXi 525 = 1856525 = 354

140

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Reduction in daily duty hours or

resistance offered for increase of time duration of workers is 354 which is bigger

than 3 (Indifferent Level) showing that unions as a whole have exerted effective

efforts for timings of worker

Only one organization KTM has 48 working hours per week at the rate of 8

hours per day Two organizations ARL and PCP have 40 working hours per week and

other seven organizations have weekly working hours less than 40 (Appendix C-2)

This time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation Out of 525 respondents 324 were

satisfied 158 indifferent and only 43 were unsatisfied (see Table 24 and Figure-5)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except management of

CDA PTV and SNGPL (see tables in appendices F-1 to F-10 column management

responses)

So the hypothesis 4 that unions did not exert efforts for time decrease or

offered resistance against time increase of workers is rejected and alternative view is

established

Figure-5 - Satisfaction Level of Workers on Time Reduction

Very Satisfied 0

0

Satisfied 324 62

Indifferent 158 30

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

141

Hypothesis 5 (H5) Unions did not exert efforts for health facilities Table 25 Mean Calculations - Health Facilities (Hfac)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 6 4

CDA 70 40 14 16

IESCO 70 26 24 20 -

KTM 35 6 25 4 -

OGDCL 50 17 28 5 - -

PCP 50 40 5 5

PTCL 70 44 16 10 -

PTV 50 37 5 8

SNGPL 50 4 34 10 2

ZTBL 50 1 38 4 7 -

Total (f) 525 28 332 93 72 -

fXi 140 1328 279 144 1891

Variable Mean = Σ fXi 525 = 1891525 = 360

142

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Health Facilities of workers is 360

which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for Health Facilities of worker

All the organizations are providing medical treatment facilities to their workers

(Appendix C-2) and out of 525 responding workers 28 were very satisfied 332

workers were satisfied 93 indifferent and 72 were un-satisfied (Table-25 amp figure-6 )

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 5 that unions did not exert efforts for health facilities is

rejected and alternative view is established

Figure-6 - Satisfaction Level of Workers on Health Facilities

Very Satisfied 28

5

Satisfied 332 63

Indifferent 93 18

un-Satisfied 72 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

143

Hypothesis 6 (H6) Unions did not exert efforts for workersrsquo children education facility

Table 26 Mean calculations- Children Education (Ced)

Variable Mean = Σ fXi 525 = 1583525 = 302

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 14 10 4

CDA 70 13 48 9

IESCO 70 9 44 17 -

KTM 35 4 20 11 -

OGDCL 50 - 8 36 06 -

PCP 50 11 16 23

PTCL 70 11 32 27 -

PTV 50 13 20 17

SNGPL 50 6 22 22

ZTBL 50 22 22 6 -

Total (f) 525 6 127 261 131

fXi 30 508 783 262 1583

144

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Children Education Facilities for

workers is 302 which is very slightly bigger than 3 (Indifferent Level) showing that

unions as a whole have exerted efforts for Education Facilities for children of workers

The satisfied workers 133 (6+127) and unsatisfied workers 131 are almost

equal with 261 indifferent workers on this facility which shows that unions need to put

more efforts for this facility (Table-26 amp Figure -7)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

PCP (see tables in appendices F-1 to F-10 column management responses)

So the hypothesis 6 that unions did not exert efforts for workersrsquo children

education facility is rejected and alternate view is established

Figure-7 - Satisfaction Level of Workers on Children Education Facilities

Very Satisfied 6

1Satisfied

127 24

Indifferent261 50

Un-Satisfied 131 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

145

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 27 Mean Calculations - Over Time Payment (Ot)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 10 - -

CDA 70 30 32 8

IESCO 70 36 20 14 -

KTM 35 - 12 15 8

OGDCL 50 - 22 16 12 -

PCP 50 37 9 4

PTCL 70 10 38 22 -

PTV 50 41 6 3

SNGPL 50 3 21 23 3

ZTBL 50 16 12 22 -

Total (f) 525 3 245 181 96

fXi 15 980 543 192 1730

Variable Mean = = Σ fXi 525 1730525 = 330

146

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Over Time Payment of workers is 330

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for Over Time Payment to worker

On unionsrsquo efforts 3 workers were very satisfied 245 were satisfied and 96

workers un-satisfied while 181 workers were indifferent (Table-27 amp figure 8)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 8 that unions did not exert efforts for overtime payment for

over working is rejected and alternate view is established

Figure-8 - Satisfaction Level of Workers on Over Time Payment

Very Satisfied 3

1Satisfied 245 47

Indifferent 181 34

un-Satisfied 96 18

Very SatisfiedSatisfiedIndifferentun-Satisfied

147

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions Table 28 Mean Calculations - working conditions (Wcon) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 4 22 4 - -

CDA 70 30 28 12

IESCO 70 50 10 10 -

KTM 35 - 30 5 -

OGDCL 50 4 33 10 3 -

PCP 50 39 6 5

PTCL 70 36 24 10 -

PTV 50 39 11

SNGPL 50 3 40 4 3

ZTBL 50 32 14 4 - -

Total (f) 525 43 333 106 43

fXi 215 1332 318 86 1951

Variable Mean = Σ fXi 525 = 1951525 = 372

148

Analysis

The overall mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Working Conditions of workers is 372

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for arrangements of better working conditions for workers

On unionsrsquo efforts 43 workers were very satisfied 333 workers were satisfied

as compared to 43 un-satisfied workers while 106 were indifferent (Table-28 amp Figure

9) It means unions have really exerted efforts for working conditions

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 8 that the unions did not exert efforts for better working

conditions is rejected and alternate view is established

Figure-9 - Satisfaction Level of Workers on Working Conditions

Very Satisfied 43

8

Satisfied 333 64

Indifferent 106 20

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

149

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 29 Mean Calculations- leaves facility (Linc) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 24 6 - -

CDA 70 35 33 2

IESCO 70 - 40 25 5 -

KTM 35 - 10 16 9 -

OGDCL 50 40 10 - -

PCP 50 38 7 5

PTCL 70 36 24 10

PTV 50 38 9 3

SNGPL 50 32 18 -

ZTBL 50 28 14 8 -

Total (f) 525 0 321 162 42

fXi 1284 486 84 1854

Variable Mean = Σ fXi 525 = 1854525 = 353

150

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for increasing annual leaves of workers or

offering resistance against decrease of leaves is 353 which is bigger than 3

(Indifferent Level) showing that unions as a whole have exerted effective efforts for

increase of Leaves of worker

Annual paid leaves for seven organizations are 68 and for IESCO are 73 where

as only for two organizations are 40 This is a reasonable time for rest and enjoyment

On unionsrsquo efforts 321 workers were satisfied as compared to 42 un-satisfied workers

which shows that unions have really exerted efforts for exacting this facility (Table-

29 amp Figure 10)

Management of all the organizations also confirmed that unions have depicted

their intention to resist the decrease of leaves (see tables in appendices F-1 to F-10

column management responses)

So the hypothesis 9 that unions did not exert efforts for leaves increase or

resist against leaves decrease is rejected and alternate view is established

Figure-10 - Satisfaction Level of Workers on Leave Facilities

Very Satisfied 0

0

Satisfied 321 61

Indifferent 162 31

un-Satisfied 42 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

151

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 2 14 14 78

CDA 70 14 50 6 0 - 288

IESCO 70 - 4 46 20 - 194

KTM 35 - 17 10 8 - 114

OGDCL 50 - 27 13 10 - 167

PCP 50 - 5 30 15 - 140

PTCL 70 4 44 22 192

PTV 50 21 24 5 166

SNGPL 50 - 37 8 5 - 182

ZTBL 50 2 18 30 - 122

Total = (f) 525 14 169 213 129

fXi 70 676 639 258 0 1643

Variable Mean = Σ fXi 525 =1643 525 = 313

152

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Post Retirement Benefits (Like pension)

of workers is 313 which is greater than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for post retirement benefits of worker

The satisfied workers are 183 (14 + 169) but unsatisfied workers 129 are also

not less while 213 workers are indifferent which shows that unions need to put more

efforts for this facility (Table-30 amp Figure-11)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

However the hypothesis 10 that the unions did not exert efforts for

postretirement benefits like pension of workers is rejected and alternate view is

established

Figure-11 - Satisfaction Level of Workers on Post Retirement Benefits

Very Satisfied 14

3

Satisfied 169 32

Indifferent 213 40

un-Satisfied 129 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

153

Hypothesis 11 (H11) Unions did not exert efforts for arranging recreation

facilities

Table 31 Mean Calculations -Recreation facilities (Rfac) Satisfaction Level No VS S IND US VUS Σ fXi

Value (Xi) 5 4 3 2 1

Organization

ARL 30 2 10 8 10

CDA 70 58 12

IESCO 70 47 23 -

KTM 35 - 16 10 9

OGDCL 50 18 14 14 04 -

PCP 50 - - 30 20 -

PTCL 70 40 30

PTV 50 10 34 6

SNGPL 50 16 30 2 2 -

ZTBL 50 28 22 -

Total (f) 525 36 80 271 138 -

fXi 180 320 813 276 1589

Variable Mean = = Σ fXi 525 1589525 = 303

154

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Recreational Facilities of workers is

303Which is slightly greater than 3 (Indifferent Level) showing that unions as a

whole have some exerted efforts for Health Facilities of worker

The satisfied workers are 116 (36 + 80 ) but unsatisfied workers 138 while

271 workers are indifferent which shows that unions need to put more efforts for this

facility (Table-31 amp Figure 12) The mean being more than 3 is due to the fact that 36

workers were very satisfied which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except in CDA KTM

PCP and PTCL (see tables in appendices F-1 to F-10 column management responses)

However the hypothesis 11 that the unions did not exert efforts for arranging

recreation facilities is rejected and alternate view is established

Figure-12 - Satisfaction Level of Workers on Recreational Facilities

Very Satisfied 36

7

Satisfied 80 15

Indifferent 271 52

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

155

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 32 Mean Calculations - training opportunities (Top) Satisfaction Level No VS S IND US VUS Σ fXi Values (Xi) 5 4 3 2 1 Organization ARL 30 18 8 4 CDA 70 10 20 40 IESCO 70 22 34 14 - KTM 35 22 13 OGDCL 50 4 19 20 7 - PCP 50 - - 24 26 - PTCL 70 16 40 14 PTV 50 16 24 10 SNGPL 50 - 10 34 6 - ZTBL 50 26 20 4 - Total (f) 525 4 137 246 138 fXi 20 548 738 276 1582

Variable Mean = Σ fXi 525 = 1582525 = 301

156

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Training Opportunities of workers is 301

which is very marginally bigger than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for training opportunities of worker but need to exert

more efforts

The satisfied workers 141 (4 + 137) and unsatisfied workers 138 are almost

equal with 246 indifferent workers showing that unions need to put more efforts for

this facility (Table-32 amp figure 13) The mean being more than 3 is due to the fact that

246 workers were indifferent which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except KTM (see tables in

appendices F-1 to F-10 column management responses)

However the as hypothesis 12 that unions did not exert efforts for arranging

training opportunities for workers is rejected and alternate view is established

Figure-13 - Satisfaction Level of Workers on Training Opportunities

Very Satisfied 4

1 Satisfied 137 26

Indifferent 246 47

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

157

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers

wagessalary difference

Table 33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 6 8 12 4

CDA 70 28 28 14

IESCO 70 - 2 37 31 -

KTM 35 2 7 26

OGDCL 50 5 26 14 5 -

PCP 50 5 37 8

PTCL 70 32 38

PTV 50 23 14 13

SNGPL 50 - 17 28 5

ZTBL 50 2 20 22 6 -

Total (f) 525 13 131 231 150

fXi 65 524 693 300 1582

Variable Mean = Σ fXi 525 =1582 525 = 301

158

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for decreasing workers officers wage salary

gap is 301 which is very marginally greater than 3 (Indifferent Level) showing that

unions as a whole have exerted some efforts for decreasing gap of remunerations

between officers and worker

The satisfied workers 144 (13 + 131) are slightly less than 150 unsatisfied

workers with 231 workers indifferent (Table-33 amp Figure 14) The mean touching to

indifferent level is due to the fact that 13 responses are of very satisfied This demands

that unions need to put more efforts for exacting this facility

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

IESCO KTM and PCP (see tables in appendices F-1 to F-10 column management

responses)

However the hypothesis 13 that unions did not exert efforts for decreasing

workersofficers wagessalary difference is rejected and alternate view is established

Figure-14 - Satisfaction Level of Workers on Decreasin Wage Difference

Very Satisfied 13

2

Satisfied 131 25

Indifferent 231 44

un-Satisfied 150 29

Very SatisfiedSatisfiedIndifferentun-Satisfied

159

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 34 Mean calculations - informing about rights (Ir) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

(ARL) 30 16 12 2

(CDA) 70 54 10 6

(IESCO) 70 49 10 11

KTM 35 20 12 3

(OGDCL) 50 34 12 4

(PCP) 50 20 21 9

(PTCL) 70 18 34 18

PTV 50 30 10 10

(SNGPL) 50 25 14 11

(ZTBL) 50 4 34 7 5

Total (f) 525 4 300 142 79

fXi 20 1200 426 158 1804

Variable Mean = Σ fXi 525 =1804525 = 344

160

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations giving awareness to workers for their rights

is 344 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted efforts for informing worker about their rights as worker

On unionsrsquo efforts 304 (4 + 300) workers were satisfied as compared to 79 un-

satisfied workers which shows that unions have really exerted efforts for exacting this

facility (Table-34 amp Figure 15)

So the hypothesis 14 that unions did not exert efforts for informing workers

about their rights is rejected and alternate view is established

Figure-15 - Satisfaction Level of Workers on Informing About Rights

Very Satisfied 4

1

Satisfied 300 57

Indifferent 142 27

un-Satisfied 79 15

Very SatisfiedSatisfiedIndifferentun-Satisfied

161

Hypothesis 15 (H15) Unions did not exert efforts for workersrsquo education Table 35 Mean calculations - workersrsquo education (We)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 12 14 4

CDA 70 28 34 8

IESCO 70 - 36 24 10 -

KTM 35 12 17 6

OGDCL 50 - 21 19 10 -

PCP 50 - 30 20 -

PTCL 70 19 39 12

PTV 50 33 8 9

SNGPL 50 15 25 10

ZTBL 50 28 18 4

Total (f) 525 234 218 73

fXi 936 654 146 1736

Variable Mean = Σ fXi 525 = 1736525 = 331

162

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for workersrsquo education is 331 which is

bigger than 3 (Indifferent Level) showing that unions as a whole have exerted efforts

for workersrsquo education facilities

On unionsrsquo efforts 234 workers were satisfied as compared to 73 un-satisfied

workers with 218 indifferent responses which shows that unions have really exerted

efforts for exacting this facility (Table-35 amp Figure-16) though there is need of more

efforts

Management of all the organizations also confirmed that unions have been

requesting for making arrangements for workers education (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 15 that unions did not exert efforts for workers education

facilities is rejected and alternate view is established

Figure-16 - Satisfaction Level of Workers on Workers Education

Very Satisfied 0

0Satisfied 234 44

Indifferent 218 42

Un-Satisfied 73 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

163

5311 Combined Mean of All Workers Variables = (Sw)

By using means of the individual variables calculated in tables 21 to 41

Combine Mean has been calculated by arranging this data in Table 42 and using the

Equation

Table 36 Summary of means of workers variables and calculation of combined mean

Variables (to measurement of unionrsquos efforts for workers)

Means of Satisfaction Level of Workers ( i)

Wris 340

Fbft 333

Jsec 379

Td 354

Linc 353

Ot 330

Wcon 372

Hfac 360

Ced 302

Prb 313

Rfac 303

Top 301

We 331

Wdf 301

Ir 344

Total = Σ i 5016

Combined Mean (Sw) = (Workers Satisfaction) 50615 = 334

164

Data from Tables 21 to 35

By putting values of the total second column in the equation

Combine Mean = Σ i N

SW = (Wris + Fbft +Jsec + Td + Hfac + Ced + Ot +Wcon +

+ Linc + Prb + Rfac + Top + Wdf + Ir + We)15

Sw = 501615 = 334 (approximately)

As the Combine Mean is 334 which is greater than 3 the lsquoindifferent levelrsquo so

it is accepted that workers are satisfied with the unionsrsquo efforts and unions are

successful in securing benefits for workers

165

Figure 17a Diagrammatic Presentation of Means of Workers Variables (Bar

Diagram)

(Height of bars indicates mean of variable)

0

1

2

3

4

5

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

Figure 17b Diagrammatic Presentation of Means of Workers Variables (Line Graph)

012345

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

166

532 CHI SQUARE TEST APLICATION

For testing the correctness of Hypotheses H1 to H15 Chi square has also been

applied in tables 37 to 51 on the data of respective variable Expected values (fe) have

been subtracted from (fo) observed values and squared and then divided by expected

values added to each other to obtain calculated value of chi square Then calculated

value is compared with table value If it is greater than table value then it is significant

so hypothesis of respective variable is to be rejected and opposite view is to be

established Observed values for chi square application have been fetched from row

stubbed lsquoTotal (f)rsquo in tables 21 to 35

167

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 37 Chi square calculations Wage rise (Wris)

Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-( χ2)

(fo) 15 284 123 103 - 525

(fe) 13125 13125 13125 13125 - 525

(fo-fe)2 131514 2333256 6806 79806 -

χ2cal =

(fo-fe)2 fe 10296 17777 055 608 28686 28686

(Figures used in this table fetched from row stubbed Total (f) in table 21)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 28686 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

1 that unions did not exert efforts for wage rise of workers is rejected and the

alternate view that unions have exerted efforts for wage rise of workers is established

168

Hypothesis 2 (H2) Unions did not exert efforts for fringe benefits like bonus of workers Table 38 Chi square calculations - Bonus (financial benefits) (f-bft)

Satisfaction Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 15 272 111 127 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1339781 1981056 41006 18062

χ2cal =

(fo-fe)2 fe 10296 15093 312 013 25714 25714

(Figures used in this table fetched from row stubbed Total in table 22)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 25714 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis2 is

rejected and the alternate view that unions did exert efforts for exacting fringe

benefits like bonuses for the workers is established

169

Hypothesis 3(H3) Unions did not exert efforts for Job Security of workers

Table 39 Chi square calculations ndash Job security (Jsec)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 59 338 87 41 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 522006 4274556 195806 814506

χ2cal =

(fo-e)2 fe 3977 32630 1491 6214 44312 44312

(Figures used in this table fetched from row stubbed Total in table 23)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 44312 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis3 that unions did not exert efforts for job security of the workers is reject

and the alternate view that unions did exert efforts for job security of the workers is

established

170

Hypothesis 4 Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 40 Chi square calculation - Time reduction (Td) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) - 324 158 43 - 525

(fe) 175 175 175 525

(fo-fe)2 22201 289 17424

χ2cal =

(fo-fe)2 fe

12686 165 9956 22807 22807

(Figures used in this table fetched from row stubbed Total in table 24)

Significant df = 2 χ2tab at 005 = 599

The calculated value of Chi Square test 22807 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

4 is rejected and the alternate view that unions did exert efforts for decreasing

working hours of the workers is established

171

Hypothesis 5 (H5) Unions did not exert efforts for health facilities

Table 41 Chi square calculations - Health facilities (Hfac)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 28 332 93 72 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1066056 4030056 146306 351056

χ2cal =

(fo-fe)2 fe 8122 30705 1114 2674 42615 42615

(Figures used in this table fetched from row stubbed Total in table 25)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 42615 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

5 that unions did not exert efforts for exacting health facilities for the workers is

rejected and the alternate view is established

172

Hypothesis 6 (H) Unions did not exert efforts for workersrsquo children education facility

Table 42 Chi square calculations - Children education (Ced)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 6 127 261 131 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1568756 18062 1683506 0625

χ2cal =

(fo-fe)2 fe 11952 137 12826 0004 24791 24791

(Figures used in this table fetched from row stubbed Total in table 26)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 24791 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis 6 is

rejected and the alternate view that unions did exert efforts for exacting children

education facilities for the workers is established

173

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 43 Chi square calculations - Over time payment (Ot) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 3 245 181 96 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1644806 1293906 247506 124256

χ2cal =

(fo-fe)2 fe 12531 9858 1885 946 2522 2522

(Figures used in this table fetched from row stubbed Total in table 27)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 2522 is greater than table value of Chi

square 782 at 005 significance level and 3 degree of freedom so the Hypothesis 7

that unions did not exert efforts for overtime payment for over working is rejected and

alternate view is established

174

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions

Table 44 Chi square calculations - working conditions (Wcon)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 43 333 106 43 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 778806 4070306 63756 778806

χ2cal =

(fo-fe)2 fe 5933 31011 485 5933 43362 43362

(Figures used in this table fetched from row stubbed Total in table 28)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi square test 43362 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

8 that unions did not exert efforts for better working conditions is rejected and

alternate view is established

175

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 45 Chi square calculations - Leaves facility (Linc) Satisfaction

Level VS S IND US VUS Total Chi Sq-χ2

(fo) 321 162 42 525

(fe) 175 175 175 525

(Fo-fe)2 21316 169 17689

χ2cal =

(fo-fe)2 fe

12180 096 18108 22384 22384

(Figures used in this table fetched from row stubbed Total in table 32)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 22384 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

9 that unions did not exert efforts for leaves increase or resist against leaves decrease

is rejected and alternate view is established

176

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 46 Chi square calculations - post retirement benefits facility (Prb)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 14 169 213 129 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1374756 142506 668306 506

χ2cal =

(fo-fe)2 fe 10474 1085 5091 003 16653 16653

(Figures used in this table fetched from row stubbed Total in table 33)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 16653 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis10 that the unions did not exert efforts for postretirement benefits like

pension of workers is rejected and alternate view is established

177

Hypothesis 11(H11) Unions did not exert efforts for arranging recreation facilities Table 47 Chi square calculations - Recreation facilities (Rfac) Satisfaction

Level VS S IND US VUS TOTAL Chi Sq-χ2

(fo) 36 80 271 138 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 907256 262656 1953006 4556

χ2cal =

(fo-fe)2 fe 6912 2001 1488 0347 23827 8663

(Figures used in this table fetched from row stubbed Total in table 34)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 23827 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

11 that the unions did not exert efforts for arranging recreation facilities is rejected

and alternate view is established

178

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 48 Chi square calculations - Training facilities (Top) Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-

χ2

fo 4 137 246 138 525

fe 13125 13125 13125 13125 525

(fo-fe)2 161925 33062 1316756 4556

χ2cal =

(fo-fe)2 fe 12337 251 10032 347 22428 22428

(Figures used in this table fetched from row stubbed Total in table 35)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 22428 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

12 that unions did not exert efforts for arranging training opportunities for workers is

rejected and alternate view is established

179

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers wagessalary difference Table 49 Chi square calculationsndashDecreasing workers officers wage salary gap (Wdf)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 13 131 231 150 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1398306 0625 995006 35156

χ2cal =

(fo-fe)2 fe 10653 0004 7581 267 18501 18501

(Figures used in this table fetched from row stubbed Total in table 36)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 18501 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

13 that unions did not exert efforts for decreasing workersofficers wagessalary

difference is rejected and alternate view is established

180

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 50 Chi square calculations - Informing about rights (Ir)

Satisfaction

Level

VS S IND US VUS TOTAL Chi Sq- χ2

(fo) 4 300 142 79 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1619256 2847656 11556 273006

χ2cal =

(fo-fe)2 fe 12337 21696 088 2080 36201 36201

(Figures used in this table fetched from row stubbed Total in table 37)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 36201 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

14 that unions did not exert efforts for informing workers about their rights is rejected

and alternate view is established

181

Hypothesis 15 (H15) Unions did not exert efforts for arranging education facilities for workers

Table 51 Chi square calculations - workersrsquo education (We)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 234 218 73 525

(fe) 175 175 175 525

(Fo-fe)2 3481 1849 10404

χ2cal =

(fo-fe)2 fe

1989 1056 5945 899 899

(Figures used in this table fetched from row stubbed Total in table 38)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 8989 is greater than table value of Chi

square 599 at 005 significance level and 2 degree of freedom so the Hypothesis 15

that unions did not exert efforts for arranging education facilities for workers is

rejected and alternate view that the unions exerted efforts for arranging education

facilities for workers is established

182

533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS

Efforts of unions for benefits and interest of employers have been measured by

Two variables These variables are Productivity or Efficiency increase (Pin)

Enhancement of workplace harmony (Wph) Three tables (table 52 to 54) have been

constructed In table 52 and 53 Means of individual variables are calculated and in

third table combine mean is calculated

First column contains the name of organizations column two contains

response of employersrsquo representative on the variable in the form of satisfaction level

and column three contains the value of the response In the last row all these values of

third columns are added and divided by number of respondents ie 10 to calculate the

variable mean If mean is equal to 3 then aggregately all the respondents are

indifferent and if variables mean is greater than indifferent level ie 3 then employers

are satisfied on unionsrsquo efforts and unions are successful to the extent of this variable

If mean of variable is less then 3 then unions are failed to the extent of this variable

Combined mean of two variables has been calculated in third table 54

Combine mean more than 3 shows satisfaction of management with unionsrsquo

performance and value of combine mean less than 3 indicates that unionsrsquo have not

exerted efforts for employers benefits so unions are not beneficial and value of

combine mean equal to 3 shows that employers is indifferent and unionsrsquo presence is

neither beneficial nor harmful

183

Hypothesis 16 (H16) Unions exerted no efforts for motivating workers to increase productivityefficiency

Table 52 Calculation of mean of management responses for unionsrsquo

efforts for productivity efficiency increase) (Pin)

Organization Name Management Responses

Value of Responses (Xi)

ARL IND 3

CDA IND 3

IESCO S 4

KTM S 4

OGDCL IND 3

PCP IND 3

PTCL IND 3

PTV IND 3

SNGPL IND 3

ZTBL S 4

Total 33

Variable Mean 3210 = 33

Variable Mean = Σ Xi N = 3210 = 33

184

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for increase of productivity or efficiency (by working in better way

with minimum loss and of good quality in minimum possible time) is 33 which is

slightly more than 3 (indifferent level) indicating that unions are exerting slight

efforts

Therefore the hypothesis 16 that unions exerted no efforts for motivating

workers to increase productivity is rejected and alternative view unions exerted efforts

for motivating workers to increase productivity is established

On viewing individually employers of only three organizations are satisfied

and of seven organizations are indifferent So these unions need to put more efforts in

motivating workers for increasing productivity efficiency

Figure-18 - Satisfaction Level of Employers on ProductivityEfficienc Increase

Indifferent 7 70

Satisfied 330

un-Satisfied 0 0

Very Satisfied 0

0Very SatisfiedSatisfiedIndifferentun-Satisfied

185

Hypothesis 17 Unions exerted no efforts for workplace harmony Table 53 Calculation of mean of management responses for workplace harmony

(Wph) Organization Name

Management Response

Values of Responses (Xi)

ARL S 4

CDA S 4

IESCO FS 5

KTM S 4

OGDCL S 4

PCP S 4

PTCL IND 3

PTV S 4

SNGPL S 4

ZTBL S 4

Total 40

Variable Mean = Σ Xi N = 4010 = 4

186

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for creating harmony at workplace is 4 which is more than 3

(indifferent level) Therefore the hypothesis 17 that unions exerted no efforts for

workplace peace and harmony is rejected and alternative view unions exerted efforts

for workplace peace and harmony is established

Viewing individually employer of one organization ie IESCO is fully

satisfied and of eight organizations are satisfied Management of only one

organization ie PTCL is indifferent So union of PTCL needs to put more efforts in

creating peace and harmony at workplace Otherwise over all performance of unions is

satisfactory

Figure-19 - Satisfaction Level of Employers on Work Place Harmony

Satisfied 8 80

Indifferent 1 10

un-Satisfied 0 0

Very Satisfied 1

10

Very SatisfiedSatisfiedIndifferentun-Satisfied

187

Table 54 Calculation of Combined Mean of Management Responses (Se)

Variables (for measurement of

unionsrsquo efforts for Employers)

Means of Satisfaction Level of

Employer ( i)

Organization

Pin 33

Wph 4

Total of Means 73

(Data from calculations of tables 52 amp 53

By putting the values of means of columns in the equation

Combine Mean = Σ i N = Se = (Pin + Wph)2

Se = (33 + 40)2 = 732

Se = 732 = 365

In this analysis PTCL management has lowest level of satisfaction on unionsrsquo

role because union recently called an unsuccessful strike lasting for 13 days against

the government of Pakistanrsquos decision of privatization of the company Performance

of unions of other organizations is satisfied with mean greater than indifferent level

ie 3

As the combined mean of all the variable measuring unions efforts for

developing human resources for the benefit of employer is 365 that is greater than 3

the indifferent level so it is established that unions are working for interest of

employers and they are satisfied with them and unions are successful in satisfying

employers

188

Figure 20a Diagrammatic Presentation of Means of Employers Variables

(Bar Diagram)

012345

Pin Wph Se

(Height of bars indicates mean of variable)

Figure20b Diagrammatic Presentation of Means of Employers Variables

(Line Graph)

0

1

2

3

4

5

Pin Wph Se

189

No Success

Partial Success

Partial Success

Success S e = 365 Sw = 334

Figure 4 Diagrammatic Presentation of success of unions (Success Matrix)

5 1 5 2 5 3 5 4 Sw = 5 Se = 5

Sw = 5 Se = 1

Sw = 4 Se = 1

Sw = 3 Se = 1 Tolerable

Sw = 2 Se = 1

Sw = 1 Se = 1

11 12 13 14 Sw = 1 Se = 5 In the success matrix of diagram 4 satisfaction of workers is represented vertically

and satisfaction of employers is represented horizontally The dark grey portion of the

matrix shows no success or failure zone In this cage both Sw and Se are less than 3

(these are 11 21 31 22 32 or 12 13 ) Two light grey portions are areas of partial

success The upper light grey cage where Sw is greater than 3 showing workers are

satisfied but Se is less than 3 showing employers are unsatisfied While the Lower

light grey portion where Se is greater than 3 showing employers are satisfied but Sw is

less than 3 showing workers are unsatisfied also indicates partial success Joining

point of all four cages is tolerable point where both Sw and Se are 3 White cage

where both Sw and Se are more than 3 is success zone Values of both Sw (334) and

Se (365) are lying in success cage

190

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED WORKERS

To assess the unions role in securing the benefits for workers comparison of

facilities availed by permanent workers and temporary workers working in the same

organization has been made It is to determine whether facilities availed by unions

members are really due to unionsrsquo efforts or just because of government blessings For

this comparison of facilities ie Wage rise Job Security Daily working hours

Working conditions Facilities for children education Health care or medical treatment

facilities Fringe benefits like bonus Other of financial benefits and Yearly paid leaves

for both categories of workers has been made in the tables 55 and 56 Table 55 is for

facilities availed by Temporary workers and table 56 is for facilities by permanent

workers

Table 55 Facilities of temporary workers (Not Union Members)

Org Name

Wris Jsec Weekly Hours

Wcon Child education

Health facilities

Fringebft Bonus

Misc-All

Yearly Leaves

ARL Little No 46 Right No No No No 32

CDA Little No 39 Right No Yes Yes Yes 48

IESCO Little No 375 Right No No No No 22

KTM Little No 48 Right No Yes No No 18

OGDCL Little No 385 Right No Yes Yes No 40

PCP - - - - - - - - -

PTCL Little No 41 Right No No No No 36

PTV Little No 365 Right No Yes Yes No 21

SNGPL Little No 39 Right No No No No No

ZTBL Little No 39 Right No No No No No

No temporary worker in the organization

191

Table 56 Facilities of Permanent Workers (Union Members)

Org Name

Wris

Jsec Weekly Hours

Wcon Child educati

on

Health facilities

Fringebft

Bonus

Misc-All

Yearly Leaves

ARL 18 Yes 40 Right Little Yes 4+ Yes 29-40

CDA 20 Yes 39 Right Little Yes 2 Yes 68

IESCO 15 Yes 375 Right Little Yes No Yes 73

KTM - Yes 48 Right Little Yes 1 Yes 40

OGDCL 20 Yes 385 Right Little Yes 2+ Yes 68

PCP 15 Yes 40 Right Little Yes No Yes 68

PTCL 35 Yes 41 Right Little Yes 1 Yes 68

PTV 25 Yes 365 Right Little Yes 1 Yes 68

SNGPL 15 Yes 39 Right Little Yes 2 Yes 68

ZTBL 15 Yes 39 Right Little Yes 2 Yes 68

Wage Rise Permanent unionized workers are availing increase in wages in every

charter of demand that is from 15 to 35 percent whereas temporary non unionized

workers receive very little wage rise Wage rise sometimes received by permanent

workers announced by government in annual budget is besides this Where as

temporary workers are also deprived from this blessing as mater of right

Job Security Temporary workers do not have job security while permanent workers

have full job security and when 750 staff members ZTBL were forcefully retired in

December 2005 their union went on strike which lasted for 33 days and management

had to reinstate them

Daily Working Hours Working hours are same for both categories of workers as

usually time is fixed by government and not demanded in charter of demand

192

Working Conditions Working conditions are same for both categories of workers

because both work in the same premises

Children Education Facilities Temporary workers have no employerrsquos provided

facility at all for children education whereas permanent workers are having it though

condition for them is not very satisfactory

Health Facilities All the permanent workers are enjoying health facilities usually

for self and for family but temporary workers in four organizations avail it for self

only

Financial Benefits Permanent workers of 8 organizations are enjoying bonus

facilities whereas temporary workers only in three organizations are enjoying it and

workers commented that this is also because of unions efforts

Miscellaneous Allowances Permanent workers of all the organizations are enjoying

any of small financial allowance or facility but temporary workers of only one

organization CDA are enjoying it

Yearly Paid Leaves Permanent workers of all the organizations are enjoying yearly

leaves facility much more than their temporary colleagues In majority of

organizations leaves facilities are 68 (20 casual leaves and 48 privileged earn leaves)

Privilege leaves are encashable at the time of retirement Temporary workers in some

organizations have no leave facility and if they go on leave it is treated as with out

pay As in SNGPL and ZTBL and situation in other organizations is also poor

It is revealed from comparison of both the tables that these facilities are

enjoyed by majority of unionized workers while non-unionized workers are not

availing these facilities if these facilities are enjoyed by non-unionized workers in any

organization beneficiaries admitted that this is because of unionsrsquo efforts

193

56 WORKERS RESPONSES FOR QUESTIONS ABOUT ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS STATUS AS COMPARED TO PAST

These all points have been assessed by asking questions given in the table 57

and calculating percentage of the responses

Table 57 Essentiality inter union relations and unions status as compared to past

QNO18 Is union Essential in your organization

QNO 19 Are inter union relations good in your organization

QNO 20 Are unions of today weaker than unions in the past

Number of Number of

Responses

Number of

Responses

Number of

Responses

Org Name Res Unions in Org

Yes No Yes No Yes No

ARL 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

AGE 100 96 4 14 86 81 19

194

Ninety six percent workers are favoring the need of unions for workers in the

organizations and commented that unions provide job security and exert efforts for

financial benefits and also provide courage and lessens the fear of employers

However they stressed on the need of exertion of more efforts by unions for exacting

benefits for workers Few workers also groused for unionsrsquo partiality and inter union

rivalry Only 4 percent replied that unionsrsquo existence or non-existence makes no

benefit or harm to the workers

Eighty six percent workers replied that unions remain in conflict with each

other where unions in the organization are more than one This inter union rivalry

weakened their power and damaged their efforts for securing benefits for workers

Eighty one percent workers commented that unions of present day are

comparatively weaker than unions of a decade before and during interview

commented that unions in the democratic regime work well while in non-democratic

regime they become weak and less effective

CHAPTER 6

DISCUSSION CONCLUSION AND RECOMMENDATIONS

61 DISCUSSION

In the light of analysis of data made in chapter four the role of labor unions in

working for benefits of workers and employers is discussed here for arriving at a

conclusion This role is discussed in two ways ie organization-wise performance of

every union and variable-wise collective performance of all unions

611 Organization-Wise Performance of Unions

Analysis of unionsrsquo performance in context of efforts for securing benefits for

workers and protecting their interest has been made in tables 1 to 10 and of unionsrsquo

performance in context of efforts for protecting interest of employer has been made in

tables 11 to 20 Employerrsquos endorsement on unionsrsquo performance is revealed in

columns of employer responses by Y or N in tables in appendices F-1 to F-10

Performance of the unions is discussed below in the light of data analysis of

previous chapter

6111 ARL Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level organizational mean 356 more than 3 It means

majority of workers are satisfied and union is successful Employer has also confirmed

their efforts

In employerrsquos context the performance of union is satisfactory for establishing

work place peace and harmony but at indifferent level in productivity or performance

increase However as a whole performance of ARL union is satisfactory with 35 value

196

of mean of satisfaction level of all the variables of employer Majority of workers

confirmed exertion of unionrsquos efforts for employer Its means union is successful

6112 CDA Union

In workers context the performance of union is satisfactory with satisfaction

level mean 336 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for Time Decrease

Leave increase Recreation facilities and workers education facilities

In employerrsquos context the performance of union is satisfactory for establishing

work place harmony while at indifferent level in Productivity or performance increase

but as a whole performance of CDA union is satisfactory with 35 value of mean of

satisfaction level of all the employerrsquos variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

6113 IESCO Union

In workers context the performance of union is satisfactory with satisfaction

level mean 312 more than 3 As the score of union is hardly above the indifferent

level and union needs to put more efforts Employer has also confirmed their efforts

except for financial benefits workersrsquo officersrsquo wage difference leave increase and

Workersrsquo education

In employerrsquos context the performance of union is satisfactory for

improvement of Efficiency of workers and establishing work place harmony as a

whole performance of IESCO union is satisfactory with 450 value of mean of

satisfaction level of all the variables Majority of workers confirmed exertion of

unionrsquos efforts for employer It means employer is satisfied and union is successful

6114 KTM Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level weighted mean 322 more than 3 Employer has

197

also confirmed their efforts except for wage rise workers officers wage difference

time decrease leave increase overtime payment recreation facilities and training

opportunities Wages in textile sector are fixed by Wage Board where union union has

no representation so wages are not fixed properly Unionrsquos efforts in social services

health facilities were acknowledged by workers

In employerrsquos context the performance of union is satisfactory for every

variable with 400 value of mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6115 OGDC Union

In workers context the performance of union is satisfactory with satisfaction

level weighted mean 361 more than 3 It means majority of workers are satisfied and

union is successful Employer has also confirmed their efforts

In employersrsquo context the performance of union is satisfactory as a whole with

350 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

6116 PCP Union

In workers context the performance of union is satisfactory with satisfaction

level mean 332 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for workers officers wage

difference education of workers children recreation facilities training opportunities

and workersrsquo education

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

198

6117 PTCL Union

In workers context the performance of union in exerting efforts for securing

benefits for workers is hardly satisfactory with satisfaction level mean 302 which is

negligibly more than 3 It means satisfactory and unsatisfactory workers are almost

equal and union is marginally successful and needs improvement in efforts Employer

has confirmed their efforts except for children education post retirement benefits and

recreation facilities

In employerrsquos context the performance of union is 3 only equivalent to

indifference level as value of weighted mean of satisfaction level of all the variables

A marginal majority of workers confirmed exertion of unionrsquos efforts for employer It

means employer is indifference with unionrsquos performance and PTCL union needs

much improvement in this area

6118 PTV Union

In workers context the performance of union is satisfactory with satisfaction

level mean 350 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for recreation facilities

In employerrsquos context the performance of union is satisfactory as a whole with

350 value of weighted mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6119 SNGPL Union

In workers context the performance of union for securing benefits for workers

is satisfactory with satisfaction level mean 354 more than 3 It means majority of

workers are satisfied and union is successful Employer has also confirmed their

efforts except for time decrease and leaves increase

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

199

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

61110 ZTBL Union

In workers context the performance of union is satisfactory with satisfaction

level mean 345 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts

In employerrsquos context the performance of union is satisfactory for all the

variables and as a whole performance of ZTBL union is satisfactory with 400 value of

weighted mean of satisfaction level of all the variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

612 Variable-Wise Performance of Unions

How unions have been exerting efforts for workers benefits has been enquired

from workers and responses of workers analyzed by obtaining their weighted

lsquoarithmetic meanrsquo in tables 21 to 35 and by applying lsquochi squarersquo in tables 37 to 51

Because one point of the lsquoExisting Problemrsquo was that unionsrsquo membership is declining

and it was assumed that this might be because unions are not exerting efforts for

securing benefits or protecting interest of workers

Similarly how unions have been exerting efforts for employerrsquos interest have

been enquired from employers and analyzed their responses by obtaining their

arithmetic mean in tables 52 and 53 Because other point of the lsquoExisting Problemrsquo

was that unions only talk about workers rights and ignore their obligations are

responsible for low productivity and it was assumed that it might be because unions

are not exerting efforts for exhorting workers for taking care of employersrsquo interest

200

6121 Workers relating variables

Wage Rise Over all sample mean of the satisfaction level of workersrsquo responses is

340 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for wage rise

Efforts of unions for wage rise can be estimated from this fact that at time of survey

(December 2006) minimum wage was Rupees 4000 but more than 324952

workers were earning wages between Rupees 5000 and 10000 and more than 4952

between 10000 and 20000 and 118 percent were getting wages even more than rupees

20000 (Appendix C-3) Rise in wages was 15 to 35 except of KTM (see

Appendix C-1) This is really an achievement at the part of labor unions

Fringe Benefits Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 333 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

securing fringe benefits of workers Except PCP workers of all other organizations are

getting bonuses and in some organizations bonuses are two or more ARL paid 5 and

KTM has paid 4 bonuses in previous charter (Appendix C-1) ARL KTM and

OGDCL pay 5 percent of their profit to workers and KTM besides this also make

payment to social security and 5 percent of workers salary to Employees Old Age

Benefit department (Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Job Security Over all sample Mean of the Satisfaction Level of workersrsquo responses is

379 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for Job Security

of workers Employees of all the organizations under study are enjoying job security

due to unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts

of unions for job security only 41 workers were unsatisfied (Table23)

Time Reduction Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 354 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

reduction in daily duty hours or resisting the increase of working hours by employer

201

Only one organization KTM has 48 working hours per week at the rate of 8 hours per

day Two organizations ARL and PCP have 40 working hours per week and other

seven organizations have weekly working hours less than 40 (Appendix C-2) This

time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation On unionsrsquo efforts for time decrease

324 respondents expressed satisfaction and only 43 workers expresses un-satisfaction

(Table-24)

Health Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 360 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

Health facilities for workers All the organizations are providing medical treatment

facilities to their workers (Appendix C-2) and 360 workers expressed their satisfaction

as compared to 72 un-satisfied workers (Table-25)

Children Education Over all sample Mean of the Satisfaction Level of workersrsquo

response is 302 which is minutely more than indifferent level (ie 3) Chi square test

for this is significant resulting that unions as a whole have been exerting efforts for

children education facilities for workers but performance of unions of five

organizations is not satisfactory and they need to improve their efforts in this regard

The satisfied workers 133 and unsatisfied workers 131 are almost equal with 261

indifferent workers on this facility which shows that unions need to put more efforts

for this facility (Table-26)

Over Time Payment Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 330 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

payment of overtime if workers work more than duty hours On unionsrsquo efforts 248

were satisfied as compared to 96 workers while 181 workers were indifferent (Table-

27)

Working Conditions Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 372 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for better

202

working conditions On unionsrsquo efforts 376 workers were satisfied as compared to 43

un-satisfied workers (Table-28) It means unions have really exerted efforts for

working conditions

Leave Facility Over all sample Mean of the Satisfaction Level of workersrsquo responses

is 353 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for increasing

yearly leaves or resisting against the decrease of yearly leaves of workers Annual paid

leaves for seven organizations are 68 and for IESCO are 73 where as only for two

organizations are 40 This is a reasonable time for rest and enjoyment On unionsrsquo

efforts 321 workers were satisfied as compared to 42 un-satisfied workers which

shows that unions have really exerted efforts for exacting this facility (Table-29)

Post Retirement benefits (Pension) Over all sample Mean of the Satisfaction Level

of workersrsquo responses is 313 which is more than indifferent level (ie 3) Chi square

test for this is also significant resulting that unions as a whole have been exerting

efforts for Post retirement benefits for workers The Mean of satisfaction level of

workers for unionsrsquo efforts for this variable is hardly more than 3 so unions need to

improve their efforts in this regard The satisfied workers are 183 but unsatisfied

workers 129 are also not less while 213 workers are indifferent which shows that

unions need to put more efforts for this facility (Table-30)

Recreational Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 303 which is hardly more than indifferent level (ie 3) Chi square test

for this is also significant resulting that unions as a whole have been exerting efforts

for recreational facilities The Mean of satisfaction level of workers for unionsrsquo efforts

for this variable is hardly more than 3 so unions need to improve their efforts in this

regard The satisfied workers are 116 but unsatisfied workers 138 while 271 workers

are indifferent which shows that unions need to put more efforts for this facility

(Table-31) The mean being more than 3 is due to the fact that 36 workers were very

satisfied which put more weight in satisfaction side

Training Opportunities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 301 which is hardly more than indifferent level (ie 3) Chi square test

203

for this is resulting that unions as a whole have been exerting efforts for training

opportunities for workers The Mean of satisfaction level of workers for unionsrsquo

efforts for this variable is hardly more than 3 so unions need to improve their efforts in

this regard The satisfied workers 141 and unsatisfied workers 138 are almost equal

with 246 indifferent workers showing that unions need to put more efforts for this

facility (Table-32) The mean being more than 3 is due to the fact that 246 workers

were indifferent which put more weight in satisfaction side

Decreasing Workers Officers Wage gap Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 301 which is hardly more than indifferent level (ie

3) Chi square test for this is also significant resulting that unions as a whole have

been exerting efforts for decreasing gap of workers and officersrsquo wages The Mean of

satisfaction level of workers for unionsrsquo efforts for this variable is hardly more than 3

so unions need to improve their efforts in this regard The satisfied workers 144 are

slightly less than 150 unsatisfied workers with 231 workers indifferent (Table-33)

The mean touching to indifferent level is due to the fact that 13 responses are of very

satisfied This demands that unions need to put more efforts for exacting this facility

Information (Awareness) about Rights Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 344 which is more than indifferent level (ie 3) Chi

square test for this is also significant proving that unions as a whole have been

exerting efforts for awareness of workers about their rights On unionsrsquo efforts 304

workers were satisfied as compared to 79 un-satisfied workers which shows that

unions have really exerted efforts for exacting this facility (Table-34)

Workersrsquo Education Collective Mean of the Satisfaction Level of workers

responsesrsquo is 331 which is more than indifferent level (ie 3) Chi Square test for this

is also significant proving that unions as a whole have been exerting efforts for

arranging workers education On unionsrsquo efforts 234 workers were satisfied as

compared to 73 un-satisfied workers with 218 indifferent responses which shows that

unions have really exerted efforts for exacting this facility (Table-35) though there is

need of more efforts

204

The Combined Mean of satisfaction level of workers on efforts of unions for

securing benefits for them or protecting their rights is 334 (SW = 334) and Chi square

tests for all variables are also significant acknowledging the exertion of unionsrsquo efforts

for workersrsquo benefits

Hypotheses from H1 to H15 for all the variables have been rejected and

alternate view has been established This proves that unions as a whole have satisfied

their workers and they are successful in this respect

6122 Employer relating variables

Productivity Increase or Efficiency Improvement Over all sample Mean of the

Satisfaction Level of employersrsquo responses is 330 which is more than indifferent level

(ie 3) proving that unions as a whole have been exerting efforts by exhorting

workers for productivity increase performance or efficiency improvement of the

workers of the organizations Except employer of IESCO KTM and ZTBL employers

of other organizations are indifferent with union performance So these unions need to

improve the efforts in this respect

Work Place Harmony Over all sample Mean of the Satisfaction Level of employersrsquo

responses is 400 which is more than indifferent level (ie 3) proving that unions as a

whole have been exerting efforts for improvement of workplace peace and harmony of

the organization Only the management of PTCL was indifferent with union

performance So this union needs to improve the efforts in this respect

The Combined Mean of satisfaction level of employers on efforts of unions for

securing benefits for them is 365 (Se = 365 More than 50 percent workers also

confirmed that unions have been exerting efforts by exhorting and motivating them for

improving performance (increase of productivity and efficiency) and workplace

harmony It has also been confirmed by workers (see YES responses of respective

variables in column 2 of table in appendices F-1 to F10) The Hypotheses 16 and 17

have been rejected This proves that unions as a whole have satisfied the employers

and this is success of unions

205

613 Comparison with Non-Unionized Workers

All the benefits secured by unions for their workers were not enjoyed by

temporary workers (comparison of facilities in tables 55 amp 56) and if they are availing

a facility or favor they admitted that it is because of unions struggle for them such as

medical treatment or bonus facility in some organizations

Besides this ninety six percent of workers replied that unions are necessary for

organizations for watching the interest of workers and obtaining benefits for them

(Question 18 of the questionnaire 2 and table 57)

However unions have some weakness at their parts and unions could not play a

beneficial role in obtaining some facilities such as

1 Education facilities for the children of workers in the form of Education

allowance Scholarships or establishment of quality schools Mean of

satisfaction of workers on unionsrsquo struggle for this facility is 302 which is

marginally above the required level and unions need much to do in this regard

2 Post retirement benefits amp Pension Mean of satisfaction of workers on unionsrsquo

struggle for this facility is 313 which is slightly above the required level

showing that satisfaction level mean is not good and unions need to put more

efforts in this respect

3 Recreation facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility is 303 which is marginally above the required level and unions are

required to exert more efforts for this

4 Training facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility was 301 which is poorly above the required level Training is of vital

importance for HRD so unions need to put more efforts for this

5 In struggle for decreasing officers workers wage gap the Mean of satisfaction

of workers on unionsrsquo struggle for this facility is 301 which is marginally

above the required level and requires more struggle

206

Unions no doubt as a whole were marginally successful in arranging four out

of fifteen facilities ie Education facilities for children of workers Recreation

facilities Training opportunities and Decreasing gap between officers salaries and

workers wages even though few unions were successful in securing these facilities as

well but unions collectively remained very successful in wining other eleven facilities

and as a whole the mean of all fifteen facilities is 334 Values of Chi Squires of all the

variables were significant compelling to accept alternate hypothesis which is other

name of significant unionsrsquo role for exerting efforts to secure workers benefits and

playing a positive role in HRD It means unions did arrange many facilities for

workers and when it is compared with temporary workers who were not getting these

facilities and benefits and if they could avail some benefits even these are because of

unionsrsquo efforts or unionsrsquo Therefore Declining in membership is not because of

unionsrsquo failure so causes of unionsrsquo membership decline are to be sought somewhere

else

Unionsrsquo role for serving the purpose of employers is also very significant as

the combine mean of all variable showing employers interest is 365 above the union

tolerable level of 300 So unions are playing a positive role for workers benefits as

well as for employers benefit and have built positive industrial relations

Ninety six percent workers commented that unions are necessary for them it is

to be admitted that unions are necessary for organizations However 86 workers

expressed their unhappiness on inter union rivalry rendering them weak because 81

workers were of the opinion that present unions became weaker than unions in the past

decade so they should get rid of this weakening vice

As a consequence of information obtained as responses from workers and

management of the sampled organizations and above detailed discussion the opinion

that was developed in chapter one (in the paragraph of Existing Problem) ie cause of

membership decline might be unions are not exerting efforts for securing facilities

and benefits for workers and the allegation that unions only talk about workers rights

and ignore responsibilities and largely responsible for low productivity now has

changed to new opinion that unions

207

1 Exert efforts for securing benefit for their workers

2 Do talk about workersrsquo rights but do not ignore their obligations

3 Motivate the workers for increase of productivity efficiency as acknowledged

by management with satisfaction level mean 32

4 Do struggle to improve work place harmony (managementsrsquo mean of

satisfaction level is 40) As they try to motivate workers to improve work

place harmony so they do not interfere in the administration and smooth

working at the workplace

Analysis of data and discussion also gave answers of research questions

62 ANSWERS OF RESEARCH QUESTIONS

1 To much extent the unions in Pakistan are effective in securing benefits and

facilities for workers like

i- Rise in wages salaries ranging from15 to 35 with satisfaction level

mean 34

ii- Fringe benefits such as bonus with satisfaction level mean 33

iii- Providing job security with satisfaction level mean 379

iv- Relief in working hours if not successful in time reduction but successful

in resisting increase of working hours with satisfaction level mean 354

v- Successful in procuring health facilities for workers with satisfaction

level mean of 360

vi- played marginal role in procuring educational facilities for children of

workers and the mean value of workers satisfaction on their struggle is

302 Unions need to improve their efforts in this respect

208

vii- Successful in procuring overtime facility with satisfaction level mean

330

viii- Successful in arranging good working conditions with workers

satisfaction level mean 372

ix- If not successful in Leaves increase but successful in resisting decrease of

leaves The satisfaction level of workers is 353

x- As whole slightly successful in procuring post retirement benefits for

their workers with workers satisfaction level mean of 313 and need to

put more efforts

xi- As a whole marginally successful in procuring recreational facilities for

their workers with workers satisfaction level mean of 303 Unions need

to exert more efforts

xii- As a whole marginally successful in procuring training opportunities for

their workers with workers satisfaction level mean of 301 Unions need

to exert more efforts

xiii- As whole were marginally successful in decreasing gap of workersrsquo

wages and officersrsquo salaries and workers satisfaction level mean is 301

Unions need to exert more efforts

xiv- Playing satisfactory role in giving the workers awareness about their

rights with workers satisfaction level mean of 344

xv- Unions also played satisfactory role in affording education facilities for

workers with satisfaction level mean 331

2- To much extent the unions in Pakistan are effective in protecting employersrsquo

interests by

i) Increasing productivity or improving efficiency of workers with

employersrsquo satisfaction level mean of 330

209

ii) Improving harmony at workplace with employersrsquo satisfaction level

mean of 400

63 CONCLUSION

By viewing results of data analysis and detailed discussions it is found that

unions under study have been proved successful in securing benefits for workers

which is apparent from satisfaction level of the workers with numeric value 334 at 5

point Likert scale Similarly it is also found that unions under study have exerted

efforts in protecting interest of employers which is apparent from satisfaction level of

the employers with numeric value of 365 at the same scale Though the performance

might have been very satisfactory if these averages were either 5 (which is ideal and

highest level of satisfaction) or near to five These are overall average result because

performance of some unions for some variables is not satisfactory Particularly

performance of unions in securing benefits like lsquochildren educationrsquo lsquorecreation

facilitiesrsquo lsquotraining opportunitiesrsquo and decreasing difference of remunerations (wages

and salaries) of workers and officers is not very appreciable and needs more efforts to

be done by unions As the scale for success is means of satisfaction levels more than

3 and both these combine means are greater than 3 so unionsrsquo overall performance is

satisfactory It has further been found that workers deem that presence of unions in the

organization is necessary which they expressed with 96 percent majority and inter

unions relations are needed to be improved because 86 percent workers opined that

inter union relations are not good Further more according to IRO 2002 work council

comprising representatives of both management and workers is necessary but

presently out of ten organizations studied work council exists only in three

organizations which is 30 percent of sample and unions are required to exert efforts to

establish work council in rest of 70 percent organizations

In the light of above lines it is concluded that Null Hypothesis is rejected and

alternate hypothesis is proved right that the unions are beneficial bodies for

organizations and ultimately for Human Resource Development Although there is

210

room for improvement in exerting efforts for securing benefits for workers as well as

for protecting employersrsquo interest and improvement of their inter unions relations

64 SUGGESTIONS AND RECOMMENDATIONS

Unions no doubt are playing a positive role in industrial relations for HRD

being successful in exacting benefits and facilities from employers for their workers

and are also protecting interests of employers by stressing workers to increase

productivity improve discipline enhancing workplace peace and harmony and

keeping good attitude with employer or management But still there are weak areas

where more efforts are needed so they should

1- Exert efforts to exact better facilities for education of workersrsquo children

2- Exert efforts to arrange training opportunities for workers to build their

skill which will make them more productive workers for the

organization and also cause to increase their remuneration

3- Exert efforts to arrange recreational facilities for workers Where these

facilities are available need improvement and where these are not

available are needed to be demanded by respective unions and arranged

by managementemployers in the form of Recreation allowances

Entertainment allowance Sports clubs Picnic parties etc

4- Unions should arrange training for office bearers from some agency to

have better know how of handling labor affairs and workersrsquo problems

5- When overall performance of unions is viewed unions claim the exertion

of efforts for every benefit (appendices F-1 to F-10 column 9) whereas

mean value of satisfaction level of workers is 34 So unions should

improve by exerting more efforts so that workers may be more satisfied

6- When overall performance of unions is viewed unions claim for exerting

efforts for benefits of employers (column 9 of tables in appendices F-1 to

F-10) whereas mean value of satisfaction level of employers is 365

211

Unions should improve by exerting more efforts so that satisfaction level

of employers may be very satisfied

7- Eighty six percent workers commented that intra organizational unions

are rivals to each other So unions should cooperate to each other if

unions are more than one in the organization Their rivalry harms them

and also to workers cause

8- Unions of today are weaker than unions a decade ago No doubt one

reason as workers told during interviews for this is non-democratic

regime but inter unions rivalry is also a reason for this so unions should

co-operate to each other in struggle for workers cause

9- Office bearers of four unions were not trained by any agency as unionists

to handle unionsrsquo matters Therefore Ministry of Labor amp man Power

should arrange training through any agency like (ILO NILAT) so that

they may be proved better unionist

10- There are Work Councils in only three organizations where as it is a legal

obligation according to section 24 of IRO 2002 Therefore unions should

demand and Government of Pakistan should arrange to form Work

Councils for prompt solution of workers problems

11- Unions sign charter of demand but intervals are different either 2 or

3years and of CDA union are not regular Unions and Employers should

sign charter of demand with regular intervals and this interval should be

two years

212

65 SUGGESTIONS FOR FURTHER RESEARCH

It is neither necessary nor easy that a research can determine causes of all the

problems or can explore all the aspects of a problem or can seek the solutions of a

problem for ever So any research can not be a final or comprehensive and there is

always need to explore better solutions of a problem or other facets of any discovery

Therefore researcher feels and admits that much work is to be done in presently

researched area In this regard for further researchers it is suggested to

1- Determine the causes of declining membership of labor unions in Pakistan

particularly in private sector after privatization

2- Determine the role of labor unions in politics of the country and in

movement of freedom of Pakistan

3- Explore the role of legislation and labor judiciary in providing relief to

labor unions or employers in the matter of conflicts

4- Enquire the social role of labor unions in solving social problems of

workers beyond collective bargaining

5- Estimate the role of labor unions in smaller industries or establishments in

solving the problems of workers by securing financial and non financial

benefits for workers

6- Search the affects of privatizations on the strength and activities of unions

in Pakistan

7- Explore the affects of globalization on the unionization unionsrsquo activities

and workers

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224

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University

Nathanson R and Associates (1999) Union responses to a changing environment

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October 11 2005 from httpwwwiloorgpublicenglish bureau

instpapers1999dp104indexhtm

Nickell S J Sushil W and Martin W (1992) Productivity Growth in UK

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Pencavel J (1995) The Role of Labor Unions in Fostering Economic Development

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Preuss G (1998) Committing to Care Labor-Management Cooperation and Hospital

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Quah J S T (1993) Human Resource Development in Four Asian Countries Some

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Rao TV (1995) Human Resources Development Experiences Interventions

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Social and Economic Research Karachi Pakistan

Robles B S Sanchez N S and Millan P C (2004) Unions Wages and

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225

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Saavedra J and Torero M (2002) Union Density Changes and Union Effects on Firm

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httpwwwiadborgrespublicationspubfilespubR-465pdf

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Song H K (1999) Labour unions in the Republic of Korea Challenge and choice

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htm

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226

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227

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229

APPINDICES

Appendix A-1

Workers by Designation of ARL

Designation Number Of Workers Interviewed

Supervisor 1

Driver 4

Photographer 1

Personal Assistant 1

Petrol Pump Operator 2

Sign Board Writer 1

Senior Fitter 3

Senior Gas Fitter 2

Fitter 4

Pump Operator 4

Plant Operator 7

Total 30

230

Appendix A-2

Workers by Designation of CDA

Designation No of Workers Interviewed

Helper 10

Firemen 10

Cook 2

Work Supervisor 1

Beldar 8

Mali (Gardner) 3

Guage Reader 1

Frash (Sweepers) 5

Security Guard 5

Mate 4

Electrician 2

UpperLower Div Clerk 8

Assistant 2

Forest Guard 4

Driver 2

Telephone Operator 1

Sub Engineer 1

Draftsman 1

Total 70

231

Appendix A-3

Workers by Designation of IESCO

Designation No of Workers

Interviewed

Assistant Sub Station Attendant 8

Security Guard 2

Assistant Line Man amp Line Man 19

Computer Operator 2

Meter Reader 4

Driver 2

Line Superintendent 4

Assistant Foreman 2

Sub Station Operator 8

Guard 2

Commercial Assistant 4

Upper Division Clerk 2

Naib Qasid 8

Draftsman 1

Safety Inspector 2

Total 70

232

Appendix A-4

Workers by Designation KTM

Designation No of Workers

Interviewed

Assistant Operator 2

Checker 2

Assistant Fitter 2

4-C- Sider 2

Pifcer 2

8-C-Sider 4

Electritian 2

Power House Operator 1

Ring Operator 10

Plant Operator 2

Helper 6

Total 35

233

Appendix A-5

Workers by Designation of OGDCL

Designation No of Workers Interviewed

Helper 15

Driver 4

Lower Division Clerk 4

Lift Operator 2

Engine Driver 4

Auto Electrician 1

Dispatcher 4

Supervisor 2

Store Assistant 2

Admin Assistant 4

Procurement Assistant 4

Naib Qasid 4

Total 50

234

Appendix A-6

Workers by Designation of PCP

Designation No of Workers Interviewed

Assistant 2

Store Keeper 2

Computer Operator 6

Proof Reader 3

Copy Holder 4

Steno Grapher 2

Typist 4

Machine Man 7

Lower Division Clerk 5

Upper Division Clerk 5

Security Guard 4

Naib Qasid 6

Total 50

235

Appendix A-7

Workers by Designation PTCL

Designation No of Workers Interviewed

Technician 14

Accounts Clerk 8

UDCLDC 8

Wireman 2

Lineman 15

Key Punch Operator (KPO) 8

Assistant 3

Naib Qasid 6

Walk Messenger 2

Plumber 2

Teleprinter Printer 2

Total 70

236

Appendix A-8

Workers by Designation PTV

Designation No of Workers Interviewed

Store Assistant 4

Driver 4

Electrician 5

Admin Assistant 4

Accounts Assistant 4

Producer 3

Publishing Machine Operator 2

Typist 4

Dispatch Rider 4

Stenographer 2

Camera Man 4

Sanitary Worker 4

Naib Qasid 6

Total 50

237

Appendix A-9

Workers by Designation of SNGPL

Designation No of Workers Interviewed

Associate Engineer 2

Supervisor Admin Cash Billing Revision

Sales Fittier

12

Typist 3

Record Keeper 3

Drivers 4

Meter Mechanic 4

Fitter 4

UDC LDC 4

Meter Readers 6

Helpers 6

Tracers 2

Total 50

238

Appendix A-10

Workers by Designation of ZTBL

Designation No of Workers Interviewed

Naib Qasid 14

Assistant 18

Cashier 4

Typist 6

StenographersSecretary 6

TelephoneOperator 2

Total 50

239

Appendix A-11

Representatives of Unions and Employers Interviewed

Organization Employersrsquo

Representative

Unionsrsquo

Representative

ARL Manager Human Resource General Secretary

CDA Deputy Director

Administration amp Labor

President

IESCO Manager Human Resource General Secretary

KTM Manager Human Resource General Secretary

OGDCL Manager Human Resource General Secretary

PCP Manager Human Resource President

PTCL General Manager Human

Resource

General Secretary

PTV Controller Administration

amp personnel

President

SNGPL Manager Human Resource General Secretary

ZTBL SVP amp Head H R amp

Operations Division

General Secretary

240

Appendix - B-1

Workers by EstablishmentPlace of Posting Interviewed ARL

Name Of Office Site Or Establishment Number Of Persons

Administrative Offices 4

Main Factory 20

Parking and petrol pump 6

Total 30

241

Appendix B-2

Workers by EstablishmentPlace of Posting Interviewed CDA

Name Of Office Site Or Establishment Number Of Persons

Environment Directorate 14

Sanitation Directorate 14

Administration Directorate 14

Enforcement Directorate 14

Revenue Directorate 14

Total 70

242

Appendix B-3

Workers by EstablishmentPlace of Posting Interviewed IESCO

Name Of Office Site Or Establishment Number Of Persons

Head Office Islamabad 6

Executive Engineer Office G-7 Islamabad 4

Executive Engineer Office Rawalpindi

Cantt

5

SDO Office Islamabad 10

SDO Office Rawalpindi Cantt 10

Grid Station Chishtia Abad Rawalpindi 5

Grid Station Zero Point Islamabad 5

Grid Station I-9 Islamabad 5

Grid Station H-11 Islamabad 5

Customer Service Centre Islamabad 5

Complaint Office Islamabad 5

Executive Engineer Office I-9 Islamabad 5

Total 70

243

Appendix - B-4

Workers by EstablishmentPlace of Posting Interviewed KTM

Establishment Place Number of Workers

Main Factory 32

Power House 3

Total 35

244

Appendix B-5

Workers by EstablishmentPlace of Posting Interviewed OGDCL

Name of Office Site or Establishment Number of Persons

Procurement Deptt 4

Administration Deptt 4

Engineering Deptt 4

Survey Deptt 4

Marketing Deptt 4

Stores ndashI9 Deptt 3

Training (OGTI) 1

Jand Oil Field 4

Loti Oil Field 4

Rahim Yar Khan Oil Field 4

Chaknaurang Oil Field 4

Lkot Satang Oil Field 4

Einkasar Oilfield 4

Service Station 2

Total 50

245

Appendix B-6

Workers by EstablishmentPlace of Posting Interviewed PCP

Name of Office Site or Establishment Number of Persons

Head Quarter PCP Islamabad 21

PCP Press Islamabad 29

Total 50

246

Appendix B-7

Workers by EstablishmentPlace of Posting Interviewed PTCL

Name of Office Site or Establishment Number of Persons

PTCL Head Quarter G-8 Islamabad 10

DE Office F-8 Islamabad 7

DE Office Westridge Rawalpindi 7

DE Office Cantt Rawalpindi 7

Telephone Exchange Westridge Rawalpindi 6

Telephone Exchange Cantt Rawalpindi 7

DE Office Satellite Town Rawalpindi 2

Revenue Office Rawalpindi 7

Civil Maintenance Office Rawalpindi 2

Customer Services Centre Rawalpindi 2

Customer Services Centre G-9 Islamabad 2

Customer Services Centre Zero Point Islamabad 5

Telephone Exchange F-8 Islamabad 6

Total 70

247

Appendix B-8

Workers by EstablishmentPlace of Posting Interviewed PTV

Name of Office Site or Establishment Number of Persons

Head Quarter Administration Offices 11

Ptv Head Qurter Telecasting 30

Ptv-1 Etv 9

Total 50

248

Appendix B-9

Workers by EstablishmentPlace of Posting Interviewed SNGPL

Name of Office Site or Establishment Number of Persons

Construction Department 7

Connection Department 7

Meter Reading Department 7

Billing Department 8

Sales Department 7

Recovery Department 7

Administration Department 7

Total 50

249

Appendix B-10

Workers by EstablishmentPlace of Posting Interviewed ZTBL

Name of Office Site or Establishment Number of Persons

Credit Division 6

Law Division 6

Recovery Division 6

General Services Division 6

Human Resource Division 6

Audit Division 6

Zonal Office 4

Zero Point Branch 4

G- 7 Branch 4

Sensa Branch 2

Total 50

250

Appendix C-1

Financial Benefits of Workers (by Unionsrsquo Efforts)

W-rise Percentage Number of

Bonuses

Other Allowances

Org

Name

Previous

Charter

Present

Charter

Previous

Charter

Present

Charter

ARL 22 18 5 41 5 of profit also paid to workers

CDA 20 20 2 22 Talwar All Dress All Washing All

IESCO 15 15 - - Hardship All and free electricity2

KTM - - 4 13 -5 of profit paid to workers

-Employer contributes Equivalent to

5 of salary to Employees Old Age

Benefit Institute

- Employer contributes Equivalent to

5 of salary to Social Security

OGDCL 191

20 2 24 Field Allowance for field staff amp 5

of profit to workers

PCP 15 15 - - Tea Allowance Capital Allowance

Night Allowance

PTCL - 35 1 15

PTV 25 25 1 1 Technical Allowance Heavy Duty

Allowance etc

SNGPL 15 15 2 2 Recreation All Half basic

ZTBL 15 15 2 2 Interest free loans

251

1- 4 four bonuses are compulsorily paid but more than are depending on profit

2- Tow bonuses are paid every year on Eid occasion and every bonus is of Rs

2000 only

3- In KTM profit decreased because of crisis in textile sector so bonus reduced to

one

4- Two bonuses are compulsory and if there is discovery in the year then

discovery bonus is also paid and called Discovery Award

5- In PTCL one Bonus is paid every year In 2005 bonus amount was Rs 16000

but in 2006 it reduced to Rs 9000 only and union filed a suit in NIRC for this

reduction

252

Appendix C-2

Non Financial Facilities of Workers (by Union Efforts)

OrganizAtion

Name

J-sec Hours

week

Annual Leaves Others

ARL Yes 40 40 Cheapest canteen

Medical Treatment

CDA Yes 39 68 Plots

Medical Treatment

IESCO Yes 375 73 Free Electricity

Medical Treatment

KTM Yes 48 40 Free House Free Gas

Free Electricity

Medical Treatment

OGDCL Yes 385 68 Recreation Clubs

Medical Treatment

PCP Yes 40 68 Medical Treatment

PTCL Yes 41 68 Call of 200 units free

Medical Treatment

PTV Yes 365 68 Medical Treatment

SNGPL Yes 39 68 Medical Treatment

ZTBL Yes 39 68 Medical Treatment

253

Appendix C-3

Monthly Wages of Workers (on December 31 2006)

Name of Org

Less Than Rs

4000-

Rs4000- to Rs 5000-

5000- To

10000

10001 to

15000-

15001 to

20000-

20001 to

25000

Above Rs

25000-

Total

ARL - - - 25 3 2 - 30

CDA - 6 52 12 - - - 70

IESCO - 2 36 28 4 - - 70

KTM - 20 13 2 - - - 35

OGDC - - 15 14 5 14 2 50

PCP - 2 36 12 - - - 50

PTCL - - 8 32 28 2 - 70

PTV - - 5 7 15 5 18 50

SNGPL - - - 19 18 9 4 50

ZTBL - - 8 20 16 4 2 50

Total - 30 173 171 89 36 26 525

Percentag

e

0 571 3296 3257 1695 686 495 100

Up to Rs 10000- 3867

From 10000 to 20000- 4952

Above Rs 20000 1181

254

Appendix D-1

Nature of Sampled Organizations

S

No

Name of

Organization

Organization

ActivityBusiness

Nature

Legal Status

Owned Controled

by

1 Attock Refinery Ltd

(ARL)

Oil Refining Public Limited Private

2 Capital Development

Authority (CDA)

Town Planning

City Municipal

Services

Government

Autonomous Body

Government of

Pakistan

3 Islamabad Electric

Supply Company

(IESCO)

Electric Power

Supply

Government

Autonomous Body

Government of

Pakistan

4 Koh-i-Noor Textile

Mills Ltd

Textile

Manufacturing

Public Limited Private

5 Oil amp Gas

Development

Corporation Ltd

(OGDCL)

Oil amp Gas

Exploration and

extraction

Semi Government

Autonomous Body

Government of

Pakistan

6 Printing Corporation

of Pakistan (PCP)

Printing and

Publication

Government

Autonomous Body

Government of

Pakistan

7 Pakistan

Telecommunication

Corporation Ltd

(PTCL)

Telephone Services Public Limited Private

8 Pakistan Television

Corporation

Telecasting

Information

Government

Autonomous Body

Government of

Pakistan

9 Sui Northern Gas Pipe

Line Ltd (SNGPL)

Natural Gas Supply Semi Government

Autonomous Body

Government of

Pakistan

10 Zari Tarraqiati Bank

Ltd (ZTBL)

Banking Government

Autonomous Body

Government of

Pakistan

255

Appendix D-2

Sampling Detail

S No

Name of

Organization

Total

Unions

Total

Permanent

Workers

Permanent

Workers

Sampled

Total

Temporary

Workers

Temporary

Workers

Sampled

1 (ARL) 1 438

30 157 10

2 (CDA) 3 14000

70 1300 10

3 (IESCO) 2 12700

70 854 10

4 (KTM) 2 1940

35 1655 10

5 (OGDCL) 2 9338

50 752 10

6 (PCP) 1 545

50 - -

7 (PTCL) 4 59700

70 2430 10

8 (PTV) 2 870

50 365 10

9 (SNGPL) 2 7600

50 610 10

10 (ZTBL) 1 2520

50 325 10

Total 20 109661

525 8448 90

256

Appendix E-1

Abbreviations for Words Used in Analysis Tables

Abbreviation Explanation

FREQ or Freq Frequency

IND Indifferent

ORG Organization

RES Respondents

S Satisfied

US Un-satisfied

UN Union

VAR Variables

VS Very Satisfied

VUS Very Un-satisfied

WT or Wt Weight or weighted

Y YES

N NO

Σ Sum Total

257

Appendix E- 2

List and Codes of Variables Used

Name of Variable Code of

Variable

Type of

Variable

Variable

Pertaining to

Success of Union Su Dependent Union

Satisfaction of Workers Sw Mediating Workers

EmployersManagement Satisfaction Se Mediating Employers

Management

Wag-Rise Wris Independent Workers

Financial Benefits (bonus) Fbft Independent Workers

WorkerOfficer Wage Salary Difference

Reduction

Wdf Independent Workers

Job Security Jsec Independent Workers

Time Reduction Td Independent Workers

Leaves Increase Linc Independent Workers

Over Time Ot Independent Workers

Working Conditions Wcon Independent Workers

Health Facility Hfac Independent Workers

Children Education Ced Independent Workers

Post retirement Benefits Pension Prb Independent Workers

Recreation Rfac Independent Workers

Training opportunities Top Independent Workers

Workers Education We Independent Workers

Workersrsquo Productivity Efficiency

performance improvement

Pin Independent Management

Work Place Harmony Wph Independent Management

Informing workers about Rights Ir Independent Workers

and mediating variables because act as independent as unionrsquos success depends

on them but they are further dependent on independent variables comprising

workersrsquo and employersrsquo responses respectively

258

Appendix ndash F-1

Responses of Union Workers and Management of ARL

(Attock Refinery Limited)

Respon dents

Workers Union

Manage-ment

VAR

YES NO VS

S

IND

US

VUS

UN RES

MGT RES

WT

Wris 30 - 2 20 8 - - Y Y -

Fbft 28 2 8 16 4 2 - Y Y -

Jsec 30 - 8 18 4 - - Y Y -

Td 4 26 16 14 - - Y Y -

Linc 26 4 24 6 - - Y Y -

Ot 26 4 20 10 - - Y Y -

Wcon 30 4 22 4 - - Y Y -

Hfac 30 - 20 6 4 Y Y -

Ced 22 8 2 14 10 4 Y Y -

Prb 8 22 - 2 14 14 Y Y -

Rfac 12 18 2 10 8 10 Y Y -

Top 10 20 18 8 4 Y Y -

We 16 14 12 14 4 Y Y -

Wdf 18 12 6 8 12 4 Y Y -

Ir 24 6 16 12 2 Y - -

Pin 26 4 Y IND 3

Wph 28 2 Y S 4

259

Appendix ndash F-2

Responses of Union Workers and Management of CDA

(Capital Development Authority)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGE RES

WT

Wris 44 26 40 14 16 Y Y -

Fbft 70 62 6 2 Y Y -

Jsec 54 16 48 18 4 Y Y -

Td 23 47 36 32 2 - Y N -

Linc 23 47 35 33 2 Y N -

Ot 36 34 30 32 8 Y Y -

Wcon 46 24 30 28 12 Y Y -

Hfac 44 26 40 14 16 Y Y -

Ced 18 52 13 48 09 Y Y -

Prb 64 6 14 50 6 0 Y Y -

Rfac 4 66 58 12 Y N -

Top 12 58 10 20 40 Y Y -

We 44 26 28 34 8 Y N -

Wdf 28 42 28 28 14 Y Y -

Ir 56 14 54 10 6 Y - -

Pin 36 34 Y IND 3

Wph 55 15 Y S 4

260

Appendix ndash F-3

Responses of Union Workers and Management of IESCO (Islamabad Electric Supply Company)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 53 17 - 26 22 22 - Y Y -

Fbft 8 62 2 12 56 - Y N -

Jsec 59 11 7 40 13 10 - Y Y -

Td 52 18 - 40 23 7 - Y Y -

Linc 50 20 - 40 25 5 - Y N -

Ot 54 16 36 20 14 - Y Y

Wcon 56 14 50 10 10 - Y Y -

Hfac 52 18 26 24 20 - Y Y -

Ced 29 41 9 44 17 - Y Y -

Prb 16 54 4 46 20 - Y Y -

Rfac 17 53 47 23 - Y Y -

Top 27 43 22 34 14 - Y Y

We 43 27 - 36 24 10 - Y N -

Wdf 18 52 - 2 37 31 - Y N -

Ir 54 16 - 49 10 11 - Y - -

Pin 50 20 - Y S 4

Wph 57 13 - Y FS 5

261

Appendix ndash F-4

Responses of Union Workers and Management of KTM (Koh-i-Noor Textile Mills Limited)

Respondents

Workers Union Manage-ment

VAR YES NO VS S IND US

VUS

UN RES

MGT RES

WT

Wris 10 25 - 10 4 21 Y N -

Fbft 27 8 - 17 17 1 Y Y -

Jsec 20 15 - 15 10 10 Y Y -

Td - 35 - 13 13 9 Y N -

Linc - 35 - 10 16 9 Y N -

Ot 16 19 - 12 15 8 Y N -

Wcon 30 5 - 30 5 - Y Y -

Hfac 31 4 6 25 4 - Y Y -

Ced 35 4 20 11 - Y Y -

Prb 22 13 - 17 10 8 Y - -

Rfac 19 16 - 16 10 9 Y N -

Top 35 22 13 Y N -

We 17 18 12 17 6 Y Y -

Wdf 2 33 2 7 26 Y N -

Ir 25 10 20 12 3 Y -- -

Pin 19 16 Y S 4

Wph 29 6 Y S 4

262

Appendix ndash F-5

Responses of Union Workers and Managementof OGDC (Oil and Gas Development Company Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 35 15 - - Y Y -

Fbft 46 4 2 34 10 4 - Y Y -

Jsec 50 - - 45 5 - - Y Y -

Td 50 - - 40 10 - - Y Y -

Linc 45 5 - 40 10 - - Y Y -

Ot 28 22 - 22 16 12 - Y Y -

Wcon 43 7 4 33 10 3 - Y Y -

Hfac 50 - 17 28 5 - - Y Y -

Ced 22 28 - 8 36 06 - Y Y -

Prb 29 21 - 27 13 10 - Y Y- -

Rfac 37 13 18 14 14 4 - Y Y -

Top 27 23 4 19 20 7 - Y Y -

We 30 20 - 21 19 10 - Y N -

Wdf 34 16 5 26 14 5 - Y Y -

Ir 46 4 - 34 12 4 - Y - -

Pin 39 11 - Y IND 3

Wph 45 5 - Y S 4

263

Appendix ndash F-6

Responses of Union Workers and Management of PCP (Printing Corporation of Pakistan)

Respon

dents

Workers Union Manage-

ment

VAR YES NO VS S IND US V

US

UN

RES

Mgt

Res

Valu

e

Wris 44 6 37 4 9 Y Y -

Fbft 44 6 33 8 9 Y Y -

Jsec 47 3 4 40 4 2 Y Y -

Td 50 40 4 6 Y Y -

Linc 50 38 7 5 Y Y -

Ot 45 5 37 9 4 Y Y -

Wcon 41 9 39 6 5 Y Y -

Hfac 42 8 40 5 5 Y Y -

Ced 11 39 11 16 23 Y N -

Prb 33 17 5 30 15 Y Y -

Rfac - 50 30 20 Y N -

Top - 50 24 26 Y N -

We 26 24 30 20 Y N -

Wdf 5 45 5 37 8 Y N -

Ir 38 12 20 21 9 Y - -

Pin 41 9 Y IND 3

Wph 44 6 Y S 4

264

Appendix ndash F-7

Responses of Union Workers and Management of PTCL

(Pakistan Telecommunication Corporation Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO

VS S IND US VUS

UN RES

MGT RES

WT

Wris 56 14 28 18 24 - Y Y -

Fbft 42 28 14 16 40 Y Y -

Jsec 50 20 2 39 15 14 - Y Y -

Td 42 28 40 20 10 - Y Y -

Linc 40 30 36 24 10 - Y Y -

Ot 18 52 10 38 22 - Y Y -

Wcon 51 19 36 24 10 - Y Y -

Hfac 50 20 44 16 10 - Y Y -

Ced 34 36 11 32 27 - Y N -

Prb 24 46 4 44 22 - Y N -

Rfac 70 40 30 - Y N -

Top 26 44 16 40 14 - Y Y -

We 22 48 19 39 12 - Y N -

Wdf 14 56 32 38 - Y Y -

Ir 36 34 18 34 18 Y - -

Pin 34 36 - Y IND 3

Wph 40 30 - Y IND 3

265

Appendix ndash F-8

Responses of Union Workers and Management of PTV (Pakistan Television Corporation)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 45 5 6 26 14 4 Y Y -

Fbft 40 10 - 36 12 2 Y Y -

Jsec 48 2 7 39 3 1 Y Y -

Td 42 8 37 10 3 Y Y -

Linc 40 10 38 9 3 Y Y -

Ot 43 7 41 6 3 Y Y -

Wcon 44 6 39 11 Y Y -

Hfac 39 11 37 5 8 Y Y -

Ced 32 18 13 20 17 Y Y -

Prb 37 13 21 24 5 Y Y -

Rfac 12 38 10 34 6 Y N -

Top 16 34 16 24 10 Y Y -

We 39 11 33 8 9 Y Y -

Wdf 32 18 23 14 13 Y Y -

Ir 99 11 - 30 10 10 Y -

Pin 43 7 Y IND 3

Wph 47 3 Y YS 4

266

Appendix ndash F-9

Responses of Union Workers and Management of SNGPL (Sui Northern Gas Pipe Line Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 47 3 7 30 10 3 Y Y -

Fbft 47 3 5 30 12 3 Y Y -

Jsec 48 2 5 34 11 Y Y -

Td 44 6 34 16 Y N -

Linc 40 10 32 18 Y N -

Ot 44 6 3 21 23 3 Y Y -

Wcon 45 5 3 40 4 3 Y Y -

Hfac 39 11 4 34 10 2 Y Y -

Ced 11 39 6 22 22 Y Y -

Prb 46 4 37 8 5 Y Y -

Rfac 47 23 16 30 2 2 Y Y -

Top 15 35 10 34 6 Y Y -

We 22 28 15 25 10 Y Y -

Wdf 32 18 - 17 28 5 Y Y -

Ir 37 13 25 14 11 Y - -

Pin 39 11 Y IND 3

Wph 47 3 Y S 4

267

Appendix ndash F-10

Responses of Union Workers and Management of ZTBL (Zarhi Tarraqiatti Bank Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS

S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 32 14 4 - Y Y -

Fbft 42 8 28 14 8 - Y Y -

Jsec 50 - 26 20 4 - - Y Y -

Td 50 28 16 6 - Y Y -

Linc 50 28 14 8 Y Y -

Ot 36 14 16 12 22 - Y Y -

Wcon 45 5 32 14 4 - - Y Y -

Hfac 40 10 1 38 4 7 - Y Y -

Ced 28 22 22 22 6 - Y Y -

Prb 12 38 2 18 30 - Y Y -

Rfac 8 42 28 22 - Y Y -

Top 30 20 26 20 4 - Y Y -

We 32 18 28 18 4 - Y Y -

Wdf 30 20 2 20 22 6 - Y Y -

Ir 42 8 4 34 7 5 - Y - -

Pin 31 19 - Y S 4

Wph 40 10 - Y S 4

268

Appendix ndash F-11

Essentiality of Unions Inter Unions Relations and Unions Status as Compared to Past

(Workers Responses)

Questions

QNo 18 Is Union Essential in yourganization

QNo 19 Are Inter Union Relations Good in Your Organization

QNo 20 Are Unions of Today Weaker Than Unions ofthe Past

Name of Number of Number of Responses

Number of Responses

Number of Responses

Org Respo ndents

Unions in Org

Yes No Yes No Yes No

ARL) 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

269

Appendix ndash F-12

(Questionnaire-1 Question 18amp 19) About Work Council and Unionistsrsquo Training

(Union Office Bearersrsquo Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does union sign Charter of Demand

Q- 20 Have you been imparted training as unionrsquos office bearer by any agency

ARL YES Yes-after every three years Once by ARL in NILAT

and Once by PWF

CDA YES Yes-(interval not regular) Yes Once by ILO amp once

by APFOL

IESCO YES Yes-after every three years Yes- by our union

KTM NO Yes-after every three years Never

GDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Yes by WTO

PTCL NO Yes-after every three years Yes ndash by ILO

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Yes by NILAT

270

Appendix ndash F-13

About Charter of Demand and Wage Cut

(Management Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does Union Sign Charter of Demand

Q- 20 Did Union Accept Wage cut any Time

ARL YES Yes-after every three years Never

CDA YES Yes-(interval not regular) Never

IESCO YES Yes-after every three years Never

KTM NO Yes-after every three years Never

OGDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Never

PTCL NO Yes-after every three years Never

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Never

271

Appendix G-1

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR UNION OFFICE BEARERS-1

PERSONAL INFORMATION

Name of Company Institution ----------------------------Public Private

Name of office bearer----------------------------------------------------------

Designation---------------------

Nature of Duty------------------------------------------------------------------------------------

No of unions in organization--------------------Is Your Union ldquoCBArdquo---------- ------

Union registered with -----------Registrar------------NIRC------------

Name of your Union---------------------------------------Status in Union-----------------

Experience of union office in years-------------------Years of present status----------

UNION INFORMATION

1- Did Union exert efforts to Increase workers Wages ------ Yes-------- No------

If yes how much increased---------------------- In percentage---------------------------

Increase how many times-------------------After how long interval--------------------------

--

2- Did union exert efforts for Fringe Benefit of workers like Bonus Yes-- No----

272

If yes how much amount-------------------------- How many times a year-------------------

3 Did union exert efforts for workers Job Security ------ Yes-- No--

If yes then how----------------------------------------------------------------------------------

4- What are workersrsquo Duty Timings

Arrival time------------------------------Break--------------------- Leaving time --------------

Total Daily hours ------------ Weekly hours----------------- Weekly working days------

Did union exert efforts for reduction in workers duty hours------Yes-----No----------

If yes then how much time reduced--------per day----------------per week------------------

5- Did union exert efforts to increase workers Leaves--Yes No------

How---------------------------------------------------------------------------------------

6- Did union exert efforts for payment of Overtime for workers --- Yes No --

If yes then with these efforts are you

7 Did union exert efforts to improve Working Conditions and provide facilities

Yes------NO--------------

8- Did union exert efforts for Health care of workers ---- Yes No ---------

i- Arranged to establish Hospital-------------------------------------------------

ii- Arranged medical Allowance--------------------------------------------------

iii- Treatment Arrangements for family-------------------------------------------

iv- Treatment Arrangements for parents ----------------------------------------

v- Any other-------------------------------------------------------------------------

273

9- Did union exert efforts for Education of workersrsquo Children Yes--- No ---

i- Established School------------------------------------

ii- Arranged Scholarship--------------------------------

iii- Arranged Transport of School------------------------

iv- Provides education Allowance-----------------------

v- Any other Arrangement------------------------------

10- Did union exert efforts for Post Retirement Benefits of Workers Yes No----

i- Arranged pension facility-------------------------------

ii- Increase of pension amount-----------------------

iii- Any other----------------------------------------

If yes then with these efforts are you

11- Did union struggle to arrange Recreational Facilities for workers Yes No --

How Details -----------------------------------------------------------------------

With this are you

12- Did union struggle to arrange any Training for workers --- Yes No ----

If yes then how --------------------------------------------------------------------

13 Did union try to decrease workers officers Wagesalary differenceYes-- No--

14- Did union inform the workers about their Rights as worker --- Yes---- No --

If yes then how

15 Did union struggle to arrange Education Facility for workers --- Yes---- No --

----------------------------------------------------------------------------------------------------------

274

16- Did union exert efforts to Increase workers Productivity Performance

Yes-----No----------

17- Did union exert efforts to Increase workplace Peace Harmony --- YesNo

How-------------------------------------------------------------------------------------

18 Is there Work Council in the Organization to solve problems with negotiation

Yes-----No----------

How-------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20- Have you been imparted training as office bearers to conduct unionrsquos matters by

Any agency------------Yes------- No------Tell details---------------------------------

Was this training arranged by union------Yes No

275

Appendix G-2

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR WORKERS-2

Personal Data

Name of Company Institution ------------------------------------ Public ----Private----

Designation----------------- Service Length------- Age----------Education----------

Experience in present institution-------------------Total Experience---------------

Nature of Duty------------------------------------------------

Number of Unions in Institution-------- Are You Union member ----------

Since how many years ----------

Name of your Union------------------------------ Is Your Union ldquoCBArdquo ----------

Your Present Wage------------------------------------------------------------------------------

Basic Pay---------------------Allowances---------------------Total------------------------------

Union Data

1- Is There any Increase in Your Wage Due to Union ------ Yes--- No----

If Yes How Much----------------------------- In Percentage----------------------------

Increase How Many Times-------------------After How Long Interval---------------

With this Increase are you

276

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied-

2- Did Union Exert Efforts for any Fringe Benefit Like Bonus For Workers

Yes----No----

If Yes Amount------------------- -----------------How Many Times a Year------------

With these efforts are you

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied

3- Did Your Union Exert Efforts for Workers Job Security -----Yes ---No------

If yes then with these efforts are you

Fully Satisfied------Satisfied-------Indifferent-------Unsatisfied-------Fully Unsatisfied-----

4- What are Your Duty Timingshours

Arrival Time---------------------------Break------------------------ Leaving Time --------------------

Daily Hours --- --------- -----Weekly Hours -------------- Weekly Working Days-----------

Did Union Exert Efforts for Reduction in Working Hours----------Yes---------No--------

If Yes Then How Much Time Reduced---------Per Day-------------------Per Week-----------

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

5- Did Union Exert Efforts To Increase Workersrsquo Leaves

Yes ------No-----

If Yes then how many leaves Increased--------------------------------------------

With these efforts are you

277

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

6- Did union exert efforts for payment of overtime for worker Yes ------No-----

If yes then how-------------------------------------------------------------------------------

With these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

7 Did Union Exert Efforts To Improve Working Conditions --Yes ------No-----

With these efforts what is you over all satisfaction level

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

8 Did Union Exert Efforts For Health of Workers ---------Yes ----No-----

vi- Arranged to Establish a Hospital-------------------------------------------------

vii- Arranged Medical Allowance------------------------------------------------------

viii- How Much is Medical Allowance-------------------------------------------------

ix- Treatment Arrangements for Family---------------------------------------------

x- Treatment Arrangements for Parents -------------------------------------------

With These Efforts Are You

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

9- Did Union Exert Efforts for Education of Workers Children YesNo-----

vi- Established School---------------------------------------------- Yes ----No-----

vii- Arranged Scholarship------------------------------------------- Yes ----No----

278

viii- Arranged Transport Of School-------------------------------- Yes ----No-----

ix- Provides Education Allowance-------------------------------- Yes ----No-----

x- School Bus Arrangement--------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

10- Did Union Exert Efforts for Post Retirement Benefits of Workers ----YesNo

iv- Arranged Pension Facility------------------------------------- Yes ----No----

v- Increase of Pension Amount---------------------------------- Yes ----No----

vi- Any Other-------------------------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

11- Did Your Union Arrange Any Recreational Facilities -----Yes -----No------

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

12- Did You Ever Receive Any Training ---- ------------------------- Yes No ------

What sort of training ---------------------------------------------------------------------

Was This Training Because of Efforts of Union-------------------------------------

If Yes Then How --------------------------------------------------------------------------

Are you satisfied with this

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

13- Did Union Try to Decrease Wage Salary Difference of Officers and Workers

YesmdashNo--

If yes then with these efforts are you

279

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied-------Fully Unsatisfied---

14- Did Your Union Inform You about Your Rights As Worker Yes ----No--

If Yes Then How --------------------------------------------------------------------------

15- Did Your Union Arrange Any Education Facilitiesfor you ---Yes -----No-----

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied

16 Did Union Exert Efforts to Increase Workers ProductivityEfficiency

Yes -----No-----

If yes then with these efforts are you

17- Did Union Exert Efforts to Increase Workplace Peace Harmony Yes---No----

18 Is union necessary for workers in the organization Yes--------No-------

19 Do unions remain in mutual conflict if more than one Yes--------No-------

20 Are unions weak with compared to past Yes--------No-------

280

Appendix G-3

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3

Name of Company Institution ------------------------------------ Public Private

Name of Official (optional) -----------------------------------------------------------------

Designation---------------------------Service Length ----------------------------------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

UNION INFORMATIOM

No of Unions in Institutionhelliphellip Do you deal with registered Union unions--------

1 Is there any workersrsquo Wage Increase due to Unionrsquos efforts Yes-------No----

If yes how much------------------------------- In percentage----------------------

Increased how many times-------------------------After how long interval------------

2- Did union exert efforts for any Frinde benefit of workers like bonus Yes--

-----No-------

If yes how much amount---------------------- How many times a year------------

3- Did union demand for workers Job security -------Yes-----------No---------

281

4- What are workers duty timings

Arrival time----------------------------------Break--------------------- Leaving time ----

Total hours --------- Daily -----------Weekly---------Weekly working days--------

Did union demand for reduction in workers job hours---------------------------

If yes then how much time reduced------per day-----------------per week-------------

5- Did union demands to increase workersrsquo Leave ---- Yes------- No-------

6- Did union exert efforts for payment of overtime for workers ndashYes ----No ---

7- Did union demand to improve working conditions ---Yes---- No-------

8- For health of workers did union demand Yes---- No-------

xi- Arranged to establish a hospital--------------------------------------------

xii- Arranged medical Allowance of Amount--------------------------------

xiii- Treatment arrangements for family-------------------------------------

xiv- Treatment arrangements for parents ---------------------------------------

xv- Any other--------------------------------------------------------------------------

9- For Education of Workers Children did union demand to ----------------

xi- Establish School -----------------------------------------------------------------

xii- Arrange scholarship---------------------------------------------------------------

xiii- Arrange transport for school----------------------------------------------------

xiv- Provide Education Allowance---------------------------------------------------

xv- Any other Arrangement--------------------------------------------------------

Yes---- No-------

10- Did union demand for Post Retirement Benefits of Workers----------------

vii- Arranged pension facility---------------------------------------------------------

282

viii- Increase of pension amount--------------------------------------------------------

ix- Any other-----------------------------------------------------------------------------

Yes---- No-------

11- Did union demand to arrange any recreational facilities for workers---------

Yes---- No-------

12 Did union demand for any training of workers ------------------------------

Any Comment

13- Did union try to decrease Wagesalary difference of officers and workers----

Yes -----No -----

14- 15- Did union inform the workers about Rights as worker Yes-------No-------

15- Did union Demand for workers Education Facility Yes-------No--------

-----------------------------------------------------------------------------------------------------

16- Did union exert efforts to increase workers productivityefficiency

Yes-------No--------

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

Any Comment-

17- Did union exert efforts to improve workplace Peace Harmony

Yes-------No--------

How-------------------------------------------------------------------------------------

283

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

18 Is there work council in the organization Yes-------No----

----------------------------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20 Did Union CBA accept any time wage cut for Firm benefit Yes -----No-----

Any comment

------------------------------------------------------------------------------------------------------------

284

Appendix G-4

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR TEMPORARY WORKERS-4

Name of Company Institution ------------------------------------ Public Private

Designation---------------------------Service Length -------Age-----------Education--------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

Question- 1 Does your Wage Increase regularly YES---No--

If increase how much -----------in percentage ---------------

Question- 2 Do you have Job Security YES----No--

Question- 3 What are your Daily Working Hours -----------

Question- 4 Are your Working Conditions ndashwell ----- YES----No--

Question- 5 Do you avail Children Education facility YES----No--

Question- 6 Do you avail HealthTreatment facility YES----No--

Question- 7 Do you have Financial Benefit like bonus YES----No--

Question- 8 Do you have Miscellaneous Benefit (petty Allowance)

YES----No--

Question- 9 How many Yearly leaves Do you have ---------------

Question- 10 Is there any contribution of union in providing these

facilities to you YES----No--

285

Appendix H-1

GLOSSARY

DEFINITIONS OF TERMS OF RESEARCH TITLE

Terms used in research title are defined below

HUMAN RESOURCE DEVELOPMENT (HRD)

Rao (1995 p 26) extracted from UNDP following definition

ldquoHRD implies many facets of development of people including their physical

intellectual emotional political spiritual and all other forms of developmentrdquo

INDUSTRIAL RELATIONS

ldquoThe field of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union Governments set

the framework for labor relations through legislation and regulationrdquo (Wikipedia-a)

LABOR UNIONS

According to lsquoWorld Labor Report 1997-1998rsquo of ILO The Australian Bureau of

Statistics has defined unions as

ldquoAn organization consisting predominantly of employees the principle activities of

which include the negotiation of pay and conditions of employment for its membersrdquo

httpwwwiloorgpublicenglishdialogueifpdialpublwlr97annexnoteshtm

ORGANIZATIONAL CLIMATE

Burton et al (2004) defined Organizational climate as

ldquoOrganizational climate is the attitude of the individuals concerning the

organizationmdashits degree of trust conflict morale rewards equity leader credibility

resistance to change and scapegoating as seen by the individualsrdquo

286

For this research it means with in the organization and not beyond organization on

social or political forums not being a subsidiary of any political party

PAKISTANrsquoS PERSPECTIVE

In Pakistanrsquos industrial relations system all the permanent workers may be member of

any CBA union or other unions or non members but permanent employees of the

organization are equally benefited from collective bargaining Further more in Pakistan there

is its own Perspective for Collective Bargaining Shafiq-ur-Rehman (2003) expressed that

collective bargaining in Pakistan instead of the issue of wage rise typically covers a much

wider range of issues including pecuniary terms of employment (such as non statutory

allowances and benefits) and non pecuniary conditions of employment including job security

and working conditions (such as safety of work place and methods of production)

  • 01 Titledoc
  • 02 Front Matterdoc
    • TABLE OF CONTENTS
    • Page
    • 1 INTRODUCTION 1
      • 2 LITERATURE REVIEW 7
        • 221 Emergence of Labor Unions 12
          • 223 Why Workers Join Unions 17
          • 23 UNIONS ROLE FOR WORKERS BENEFITS 19
          • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39
          • 241 Productivity Efficiency and Profitability 39
          • 242 Work Place Harmony and Cooperative Role 46
            • 25 STRATEGIES AND TACTICS OF UNIONS 50
              • 251 Source of Strength of Unions 50
                • 2511 Unionsrsquo Density and Their Strength to Effect 50
                • 252 Peaceful Means of Achieving Objectives 51
                  • 26 CORRUPTION OF UNIONS 53
                  • 261 Corruption and Selfishness of Officials 53
                    • 264 Bribes (Extortion and Pay-off) 58
                      • 31 HISTORY OF LEGISLATION 61
                        • 311 Laws Permitting Establishment of Unions 62
                          • 312 Laws for Settlement of Disputes 64
                          • 322 ILO Conventions 67
                            • 4 RESEARCH METHODOLOGY 84
                            • 42 POPULATION AND SAMPLING 91
                            • 321 Stage-lsquoIrsquo Sampling of Organizations 91
                              • 422 Stage-lsquoIIrsquo Sampling of Respondents 92
                              • 4221 Sampling of Union Office Bearers 92
                              • 4222 Sampling of Permanent (Unionized) workers 93
                              • 4223 Sampling of Management 93
                                • 43 DATA COLLECTION INSTRUMENTS 93
                                  • 431 Questionnaires and Their Structure 93
                                    • 44 PREPARATION OF SATISFACTION LEVEL SCALE 97
                                      • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103
                                        • BENEFITS
                                        • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105
                                        • 51 DATA PRESENTATION 106
                                          • 521 Organizational Means of Workersrsquo Variables 111
                                          • 522 Organizational Means of Managementrsquos Variables 122
                                            • 532 Chi Square Test Application 166
                                            • 533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182
                                              • 6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195
                                              • 63 CONCLUSIONS 209
                                              • 64 SUGGESTIONS AND RECOMMENDATIONS 210
                                              • 65 SUGGESTIONS FOR FURTHER RESEARCH 212
                                              • REFERENCES 213
                                              • APPENDICES 229
                                              • LIST OF TABLES
                                              • Table Page
                                              • 1 Responses of Workers of ARL Organizational Mean Calculation) 112
                                                • 2 Responses of Workers of CDA (Organizational Mean Calculation) 113
                                                  • 3 Responses of Workers of IESCO (Organizational Mean Calculation) 114
                                                    • 4 Responses of Workers of KTM (Organizational Mean Calculation) 115
                                                      • 7 Responses of workers of PTCL (Organizational Mean Calculation) 118
                                                      • 8 Responses of workers of PTV (Organizational Mean Calculation) 119
                                                      • 9 Responses of workers of SNGPL (Organizational Mean Calculation) 120
                                                      • 11 Responses of Management of ARL 122
                                                          • 12 Responses of Management of CDA 123
                                                            • 18 Responses of Management of PTV 129
                                                            • 39 Chi square calculations - Security (Jsec) 169
                                                              • 40 Chi square calculation - Time reduction (Td) 170
                                                                  • 56 Facilities of Permanent Workers (Union Members) 191
                                                                      • 03 CHAP-1doc
                                                                        • CHAPTER 1
                                                                        • INTRODUCTION
                                                                          • 04 CHAP-2doc
                                                                            • CHAPTER 2
                                                                              • LITERATURE REVIEW
                                                                                • One reason of these hardships in the words of George (2004) is that a majority of working people possess labor as their only resource to carry on with their lives
                                                                                  • 221 Emergence of Labor Unions
                                                                                    • Aidt and Tzannatos (2001) asserted that the desirability of unions depends on many factors including (a) what unions do (b) how collective bargaining is organized and (c) the effectiveness of dispute resolution mechanisms
                                                                                      • 23 UNIONS ROLE FOR WORKERS BENEFITS
                                                                                        • Klaff and Ehrenberg (2003) using the data source of survey conducted in USA by the Association of Higher Education Facilities Officers 1997-1998 investigated that union coverage affected staff salaries at 163 US colleges and universities and estimated a union salary premium of 9- 11
                                                                                          • Similarly Anyemedu (2002) found that in Ghana government considers wage restraint as a means of attracting foreign investment Hence the government and employers have succeeded in installing the capacity to pay of employers as virtually the only factor to be taken into account in wage determination
                                                                                            • Labor unions also exert efforts for increasing equality and reducing discrimination in wages of workers
                                                                                              • This time reduction was prevailing everywhere at large extent as Aidt amp Tzannatos 2001) wrote that hours worked is lower among unionized than non-unionized workers This is true for both total and normal hours
                                                                                                • Unionsrsquo role in securing health safety and welfare benefits for employees has been found in following studies
                                                                                                  • Stiglitz (2000) admitted that unions have played role in Health and safety standards and had played also role in improvement of working conditions for workers
                                                                                                    • Unions also have an eye on the life of workers after the end of service For this they exert efforts either in the form of arranging employer contribution or launch their own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is shown in the several researches where unionized workers receive better pension options and opportunities
                                                                                                      • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY
                                                                                                        • The co-operative role of unions towards state employer and society by exerting efforts to increase productivity and efficiency has been studied by several researchers as quoted in following lines
                                                                                                          • 241 Productivity Efficiency and Profitability
                                                                                                          • 242 Work Place Harmony and Cooperative Role
                                                                                                            • Song (1999) wrote that South Korean unionrsquos struggled to promote worker compliance and commitment to firms and brought the employees back from street rallies into the workplace
                                                                                                              • 25 STRATEGIES AND TACTICS OF UNIONS
                                                                                                              • For the achievement of objectives of securing benefits for the workers and solution of their problems unions adopt peaceful and violent means and succeed when they have strength or fail in their struggle if they have no strength Numerous researches have highlighted it
                                                                                                                • Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos view large and centralized unions are more functional and influential than fragmented unions
                                                                                                                  • 251 Source of Strength of Unions
                                                                                                                    • 2511 Unionsrsquo density and their strength to effect
                                                                                                                    • 252 Peaceful Means of Achieving Objectives
                                                                                                                      • 26 CORRUPTION OF UNIONS
                                                                                                                      • Though unions exerted efforts for securing benefits gaining respect and building a fearless atmosphere for their workers but unionsrsquo history is also plagued by corruption which has been brought to light by following researches
                                                                                                                      • 261 Corruption and Selfishness of Officials
                                                                                                                      • For unions in Pakistan Khan (1992) expressed that the numerical increase of trade unions leads to personal rivalry of union leaders competing for command over small unions The trade unions leaders fight among themselves instead of fighting against management or government and every leader is status seeker caring more for his own prestige and image than to cause of common worker or unionism
                                                                                                                        • 264 Bribes (Extortion and Pay-off)
                                                                                                                          • 05 CHAP-3doc
                                                                                                                            • CHAPTER 3
                                                                                                                              • 31 HISTORY OF LEGISLATION
                                                                                                                                • 311 Laws Permitting Establishment of Unions
                                                                                                                                • 312 Laws for Settlement of Disputes
                                                                                                                                • 322 ILO Conventions
                                                                                                                                  • 06 CHAP-4doc
                                                                                                                                    • CHAPTER 4
                                                                                                                                    • RESEARCH METHODOLOGY
                                                                                                                                    • 42 POPULATION AND SAMPLING
                                                                                                                                    • 421 Stage-lsquoIrsquo Sampling of Organizations
                                                                                                                                    • 422 Stage-lsquoIIrsquo Sampling of Respondents
                                                                                                                                    • 4221 Sampling of union office bearers
                                                                                                                                    • 4222 Sampling of permanent (Unionized) workers
                                                                                                                                    • 4223 Sampling of management
                                                                                                                                      • 43 DATA COLLECTION INSTRUMENTS
                                                                                                                                        • 431 Questionnaires and their Structure
                                                                                                                                          • 44 PREPARATION OF SATISFACTION LEVEL SCALE
                                                                                                                                            • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS
                                                                                                                                              • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits
                                                                                                                                                  • 07 CHAP-5doc
                                                                                                                                                    • 51 DATA PRESENTATION
                                                                                                                                                    • 521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES
                                                                                                                                                    • Organization wise arithmetic means and percentages of all the organizations on the basis of the variables pertaining to workers have been calculated below in tables 1 to table 10
                                                                                                                                                    • Table-1 Responses of Workers of ARL Organizational Mean Calculation)
                                                                                                                                                      • Ced
                                                                                                                                                      • We
                                                                                                                                                        • Table 2 Responses of Workers of CDA (Organizational Mean Calculation)
                                                                                                                                                          • We
                                                                                                                                                          • Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)
                                                                                                                                                            • Linc
                                                                                                                                                              • We
                                                                                                                                                                • Table 4 Responses of Workers of KTM (Organizational Mean Calculation)
                                                                                                                                                                  • Jsec
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 7 Responses of workers of PTCL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 8 Responses of workers of PTV (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • 522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES
                                                                                                                                                                    • Organization wise arithmetic means of all the organizations on the basis of the two variables pertaining to management have been calculated below in tables 11 to table 20
                                                                                                                                                                    • Table 11 Responses of Management of ARL
                                                                                                                                                                      • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing that union of ARL is exerting efforts in exhorting workers to work for the interest of employer Therefore union is successful
                                                                                                                                                                          • Table 12 Responses of Management of CDA
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (KTM) = Σ Xi2 = 82 = 400
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (OGDC) = Σ Xi2 = 72 = 35
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                              • Table 18 Responses of Management of PTV
                                                                                                                                                                                • Organizational Mean (SNGPL) = ΣXi2 = 72 = 35
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                  • Variable Mean = Σ fXi 525 = 1856525 = 354
                                                                                                                                                                                  • Variable Mean = = Σ fXi 525 1730525 = 330
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 =1643 525 = 313
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 = 1582525 = 301
                                                                                                                                                                                      • We
                                                                                                                                                                                      • 331
                                                                                                                                                                                        • 532 CHI SQUARE TEST APLICATION
                                                                                                                                                                                            • Table 39 Chi square calculations ndash Job security (Jsec)
                                                                                                                                                                                              • Table 40 Chi square calculation - Time reduction (Td)
                                                                                                                                                                                                • 533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS
                                                                                                                                                                                                  • Variable Mean
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 3210 = 33
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 4010 = 4
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Total of Means
                                                                                                                                                                                                    • (Data from calculations of tables 52 amp 53
                                                                                                                                                                                                      • By putting the values of means of columns in the equation
                                                                                                                                                                                                      • Combine Mean = Σ i N = Se = (Pin + Wph)2
                                                                                                                                                                                                      • Se = (33 + 40)2 = 732
                                                                                                                                                                                                          • Table 56 Facilities of Permanent Workers (Union Members)
                                                                                                                                                                                                            • ARL
                                                                                                                                                                                                              • 08 CHAP-6doc
                                                                                                                                                                                                                • DISCUSSION CONCLUSION AND RECOMMENDATIONS
                                                                                                                                                                                                                • 64 SUGGESTIONS AND RECOMMENDATIONS
                                                                                                                                                                                                                • 65 SUGGESTIONS FOR FURTHER RESEARCH
                                                                                                                                                                                                                  • 09 Reference amp Appendicesdoc
                                                                                                                                                                                                                    • Appendix A-1
                                                                                                                                                                                                                    • Appendix A-3
                                                                                                                                                                                                                    • Workers by Designation of IESCO
                                                                                                                                                                                                                    • Appendix A-4
                                                                                                                                                                                                                    • Workers by Designation PTV
                                                                                                                                                                                                                    • Appendix A-9
                                                                                                                                                                                                                    • Workers by Designation of SNGPL
                                                                                                                                                                                                                    • Workers by Designation of ZTBL
                                                                                                                                                                                                                    • Appendix A-11
                                                                                                                                                                                                                    • Representatives of Unions and Employers Interviewed
                                                                                                                                                                                                                    • Appendix - B-1
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed ARL
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed CDA
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed IESCO
                                                                                                                                                                                                                      • Appendix - B-4
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed KTM
                                                                                                                                                                                                                      • Appendix B-5
                                                                                                                                                                                                                        • Workers by EstablishmentPlace of Posting Interviewed OGDCL
                                                                                                                                                                                                                          • Workers by EstablishmentPlace of Posting Interviewed PCP
                                                                                                                                                                                                                            • Workers by EstablishmentPlace of Posting Interviewed PTCL
                                                                                                                                                                                                                              • Workers by EstablishmentPlace of Posting Interviewed PTV
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed SNGPL
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed ZTBL
                                                                                                                                                                                                                                  • Financial Benefits of Workers (by Unionsrsquo Efforts)
                                                                                                                                                                                                                                  • Non Financial Facilities of Workers (by Union Efforts)
                                                                                                                                                                                                                                    • Abbreviation
                                                                                                                                                                                                                                      • Explanation
                                                                                                                                                                                                                                      • FREQ or Freq
                                                                                                                                                                                                                                      • Frequency
                                                                                                                                                                                                                                      • IND
                                                                                                                                                                                                                                      • Indifferent
                                                                                                                                                                                                                                      • ORG
                                                                                                                                                                                                                                      • Organization
                                                                                                                                                                                                                                      • RES
                                                                                                                                                                                                                                      • Respondents
                                                                                                                                                                                                                                      • S
                                                                                                                                                                                                                                      • Satisfied
                                                                                                                                                                                                                                      • US
                                                                                                                                                                                                                                      • Un-satisfied
                                                                                                                                                                                                                                      • UN
                                                                                                                                                                                                                                      • Union
                                                                                                                                                                                                                                      • VAR
                                                                                                                                                                                                                                      • Variables
                                                                                                                                                                                                                                      • VS
                                                                                                                                                                                                                                      • Very Satisfied
                                                                                                                                                                                                                                      • VUS
                                                                                                                                                                                                                                      • Very Un-satisfied
                                                                                                                                                                                                                                      • WT or Wt
                                                                                                                                                                                                                                      • Weight or weighted
                                                                                                                                                                                                                                      • Y
                                                                                                                                                                                                                                      • YES
                                                                                                                                                                                                                                      • N
                                                                                                                                                                                                                                      • NO
                                                                                                                                                                                                                                      • Σ
                                                                                                                                                                                                                                      • Sum Total
                                                                                                                                                                                                                                        • Name of Variable
                                                                                                                                                                                                                                          • Workers Education
                                                                                                                                                                                                                                          • We
                                                                                                                                                                                                                                          • Appendix ndash F-1
                                                                                                                                                                                                                                          • Responses of Union Workers and Management of ARL
                                                                                                                                                                                                                                              • Top
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Appendix ndash F-2
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of CDA
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of IESCO
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                  • Responses of Union Workers and Management of KTM
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTCL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTV
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of SNGPL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Essentiality of Unions Inter Unions Relations and
                                                                                                                                                                                                                                                    • (Questionnaire-1 Question 18amp 19)
                                                                                                                                                                                                                                                    • About Work Council and Unionistsrsquo Training
                                                                                                                                                                                                                                                    • About Charter of Demand and Wage Cut
                                                                                                                                                                                                                                                        • Appendix G-1
                                                                                                                                                                                                                                                        • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                        • PERSONAL INFORMATION
                                                                                                                                                                                                                                                          • If yes how much amount-------------------------- How many times a year-------------------
                                                                                                                                                                                                                                                          • How---------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • Appendix G-2
                                                                                                                                                                                                                                                              • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR WORKERS-2
                                                                                                                                                                                                                                                                  • Personal Data
                                                                                                                                                                                                                                                                    • If yes then how-------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                      • Appendix G-3
                                                                                                                                                                                                                                                                      • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                      • QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3
                                                                                                                                                                                                                                                                        • UNION INFORMATIOM
                                                                                                                                                                                                                                                                          • 3- Did union demand for workers Job security -------Yes-----------No---------
                                                                                                                                                                                                                                                                            • 18 Is there work council in the organization Yes-------No----
                                                                                                                                                                                                                                                                                • Appendix G-4
                                                                                                                                                                                                                                                                                • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR TEMPORARY WORKERS-4
                                                                                                                                                                                                                                                                                  • PAKISTANrsquoS PERSPECTIVE

Industrial Relations Role of Labor Unions in Organizational

Climate in Pakistanrsquos Perspective

By

Muhammad Tariq Khan

A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF

DOCTOR OF PHILOSOPHY

In

Human Resource Development

To

FACULTY OF ADVANCED INTEGRATED STUDIES AND RESEARCH (MSHRD)

NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD

August 2008

copy Muhammad Tariq Khan 2008

ii

DISSERTATION AND DEFENSE APPROVAL FORM

The undersigned certify that they have read the following dissertation examined the defense are satisfied with the overall exam performance and recommend the thesis to the Faculty of Advanced Integrated Studies amp Research for acceptance Dissertation Title Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective Submitted By Muhammad Tariq Khan Registration 135-PhDHRD2003 Doctor of Philosophy Human Resource Development Dr Zafar Mueen Nasir Name of Research Supervisor Signature of Research Supervisor Prof Dr Shazra Munnawar ______________________________ Name of Dean (FAISampR) Signature of Dean (FAISampR) Prof Dr Aziz Ahmad Khan ______________________________ Name of Rector Signature of Rector

__________________ Date

iii

CANDIDATE DECLARATION FORM I Muhammad Tariq Khan_____________________________________________

Son of Mr Chanan Khan

Registration No 135-PhDHRD2003

Discipline Human Resource Development

Candidate of Doctor of Philosophy at the National University of Modern Languages do hereby declare that Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective submitted by me in partial fulfillment of PhD degree in disciplinedepartment Faculty of Advanced Integrated Studies amp Research is my original work and has not been submitted or published earlier I also solemnly declare that it shall not in future be submitted by me for obtaining any other degree from this or any other university or institution I also understand that if evidence of plagiarism is found in my dissertation at any stage even after the award of a degree the work may be cancelled and the degree revoked August 11 2008 ____________________ Date Signature

Muhammad Tariq Khan Name

iv

ABSTRACT

Dissertation Title Industrial Relations Role of Labor Unions in Organizational

Climate in Pakistans Perspective

Purpose of this research was to explore the aspects of HRD beyond education and

training and to explore the role of labor unions in HRD by looking at the improvement in

productivity and harmony at work place due to them For this purpose survey

questionnaires on five point Likert scale ranging from very unsatisfied to very satisfied

were designed and pre-tested The study was carried out by taking a sample of 10

unionized organizations In these organizations 525 unionized workers 90 temporary

non-unionized workers and employers were interviewed to collect information on role of

labor unions in securing benefits for workers and motivating them for higher productivity

and peace at work place Performance of unions was estimated in two aspects One

aspect was their success in securing benefits for workers and other was in protecting the

interest of employers The success of unionsrsquo in exerting efforts for securing benefits for

workers was measured by satisfaction of workers which was dependent on15 variables

ie wage rise fringe benefits job security time decrease health facilities children

education over time payment working conditions leaves increase post retirement

benefits recreation facilities training opportunities decrease of wage differences

informing workers about their rights and workersrsquo education The success of unionsrsquo in

exerting efforts for protecting employersrsquo interest was measured by satisfaction of

employers which was dependent on two variables ie productivity increase and work

place harmony The results of the study show that unions proved successful in securing

benefits for workers and protecting the interest of employers though performance of

unions needs to be improved by exerting more efforts

v

TABLE OF CONTENTS

Page Inner title page i

Dissertation and Defense approval form ii

Candidate Declaration Form iii

Abstract iv

Table of Contents v

List of Figure xi

List of Tables xiii

List of Acronyms xvi

Acknowledgements xix

1 INTRODUCTION 1

11 BACKGROUND OF STUDY OF HUMAN RESOURCE 1

DEVELOPMENT

12 EXISTING PROBLEM 2

13 PURPOSE OF RESEARCH 4

14 RESEARCH QUESTIONS 4

15 SIGNIFICANCE OF THE RESEARCH 6

16 LIMITATIONS OF RESEARCH 6

2 LITERATURE REVIEW 7

21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT 7

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS 10

221 Emergence of Labor Unions 12

222 Unionization Problem 12

2221 Opposition of Unionization by State 13

2222 Opposition of Unionization by Employer 16

223 Why Workers Join Unions 17

23 UNIONS ROLE FOR WORKERS BENEFITS 19

231 Wage Rise 21

vi

232 Reduction in Wage Inequality 24

233 Fringe Benefits 25

234 Job Security and Employment 26

235 Time Reduction (Duty Hours) 28

236 Payment of Over Time 29

237 Paid Leaves 29

238 Working Condition 30

239 Health Care and Social Security 31

2310 Post Retirement Benefits (Pensions) 33

2311 Training Opportunities 34

2312 Workersrsquo Education 36

2313 Recreational and Social Services 37

2314 Children Education 39

2315 Workers Awareness 39

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39

241 Productivity Efficiency and Profitability 39

242 Work Place Harmony and Cooperative Role 46

25 STRATEGIES AND TACTICS OF UNIONS 50

251 Source of Strength of Unions 50

2511 Unionsrsquo Density and Their Strength to Effect 50

252 Peaceful Means of Achieving Objectives 51

253 Violent Means 52

26 CORRUPTION OF UNIONS 53

261 Corruption and Selfishness of Officials 53

262 Financial Corruption 53

2621 Embezzlement Examples 56

263 Unionsrsquo Officers Monopoly 57

264 Bribes (Extortion and Pay-off) 58

265 Sound Labour Relations at the Workplace no Important 59

Concern of Employers and Unions

vii

3 HISTORY AND LEGAL FRAME WORK OF UNIONIZATION 60

IN PAKISTAN

31 HISTORY OF LEGISLATION 61

311 Laws Permitting Establishment of Unions 62

312 Laws for Settlement of Disputes 64

313 Industrial Relations Ordinance 1969 64

32 RIGHT OF UNIONIZATION 66

321 United Nationsrsquo Declaration of Human Rights 66

322 ILO Conventions 67

323 Constitution of Pakistan 67

33 PRESENT ENFORCED LAWS 68

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo 68

332 Labor Laws Granting Rights 72

3321 Workmen Compensation Act 1923 72

3322 Factories Act 1934 72

3323 Payment of Wages Act 1936 73

3324 The minimum Wages Ordinance 1961 73

3325 Social Security Ordinance 1965 73

3326 The industrial and commercial Employment (standing

order) Ordinance 1968 74

3327 The companies Profit (workersrsquo participation)

Act 1968 74

3328 The Shops and Establishments Ordinance 1969 74

3329 The Minimum Wages for Unskilled Workers 74

Ordinance 1969

33210 Workers Welfare fund Ordinance 1971 75

33211 Workers Children (Eucation) Ordinance 1972 75

33212 Employees Cost of Living (Relief) Act 1973 75

33213 Employees Old Age Benefit Act 1976 76

333 Labor Policies 76

3331 First Policy (1955) 76

viii

3332 Second Policy (1959) 77

3333 Third Policy (1969) 77

3334 Fourth Policy (1972) 78

3335 Fifth Policy (2002) 79

3336 Labor Protection Policy 2005 81

3337 Labor Inspection Policy 2006 82

4 RESEARCH METHODOLOGY 84

41 THEORETICAL FRAME WORK 84

411 Research Model and Variable Formation 84

412 Research Hypotheses 91

42 POPULATION AND SAMPLING 91

321 Stage-lsquoIrsquo Sampling of Organizations 91

422 Stage-lsquoIIrsquo Sampling of Respondents 92

4221 Sampling of Union Office Bearers 92

4222 Sampling of Permanent (Unionized) workers 93

4223 Sampling of Management 93

4224 Sampling of Temporary (Non-unionized) Workers 93

43 DATA COLLECTION INSTRUMENTS 93

431 Questionnaires and Their Structure 93

44 PREPARATION OF SATISFACTION LEVEL SCALE 97

45 PILOT STUDY 97

46 CODES AND ABBREVIATIONS 97

47 STATISTICAL METHODS APPLIED 98

471 Percentage 98

472 Arithmetic Mean 98

473 Chi Square (χ2) 100

474 Comparison 101

48 CALCULATIONS BY APPLYING STATISTICAL METHODS 101

481 Percentage Calculation of Yes No Responses 101

482 Means Calculations 101

483 Chi Square Applications 103

ix

484 Comparison Application 103

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103

BENEFITS

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105

5 DATA ANALYSIS AND RESULTS 106

51 DATA PRESENTATION 106

511 Organization-Wise Description of Respondents 106

5111 Description of respondents of ARL 107

5112 Description of respondents of CDA 107

5113 Description of respondents of IESCO 107

5114 Description of respondents of KTM 108

5115 Description of respondents of OGDCL 108

5116 Description of respondents of PCP 108

5117 Description of respondents of PTCL 108

5118 Description of respondents of PTV 109

5119 Description of respondents of SNGPL 109

51110 Description of respondents of ZTBL 109

51111 Workers responses of the questions about essentiality

inter unions relations and unions status as compared 109

to past

51112 Unionsrsquo office bearersrsquo responses of the questions 110

about work council charter of demand and unionistsrsquo

training

51113 Management responses about work council charter 110

of demand and wage cut

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA 110

521 Organizational Means of Workersrsquo Variables 111

522 Organizational Means of Managementrsquos Variables 122

53 VARIABLE-WISE ANALYSIS 132

531 Mean Calculation of Variables Measuring Unionsrsquo Efforts 133

for Workersrsquo Benefits

x

5311 Combined Mean of All Workers Variables 163

532 Chi Square Test Application 166

533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED 190

WORKERS

56 WORKERS RESPONSES FOR QUESTIONS ABOUT

ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS 193

STATUS AS COMPARED TO PAST

6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195

61 DISCUSSION 195

611 Organization-Wise Performance of Unions 195

6111 ARL Union 195

6112 CDA Union 196

6113 IESCO Union 196

6114 KTM Union 196

6115 OGDC Union 197

6116 PCP Union 197

6117 PTCL Union 198

6118 PTV Union 198

6119 SNGPL Union 198

61110 ZTBL Union 199

612 Variable-Wise Performance of Unions 199

6121 Workers relating variables 200

6122 Employer relating variables 204

613 Comparison with Non-Unionized Workers 205

62 ANSWERS OF RESEARCH QUESTIONS 207

63 CONCLUSIONS 209

64 SUGGESTIONS AND RECOMMENDATIONS 210

65 SUGGESTIONS FOR FURTHER RESEARCH 212

REFERENCES 213

APPENDICES 229

xi

LIST OF FIGURES Figure No Page 1 Showing sequence of variables effect 84 2 Pie Diagram - Satisfaction Level of Workers on Wage 134

3 Pie Diagram - Satisfaction Level of Workers Financial Benefits 136

4 Pie Diagram - Satisfaction Level of Workers on Job Security 138

5 Pie Diagram - Satisfaction Level of Workers on Time Reduction 140

6 Pie Diagram - Satisfaction Level of Workers on Health Facilities 142

7 Pie Diagram - Satisfaction Level of Workers on Children Educat 144

8 Pie Diagram - Satisfaction Level of Workers on Overtime Pay 146

9 Pie Diagram - Satisfaction Level of Workers on Working Cond 148

10 Pie Diagram - Satisfaction Level of Workers on Leave Facilities 150

11 Pie Diagram - Satisfaction Level of Workers on Post Retire Bfts 152

12 Pie Diagram - Satisfaction Level of Workers on Recreation Fac 154

13 Pie Diagram - Satisfaction Level of Workers on Training Oppor 156

14 Pie Diagram - Satisfaction Level of Workers on Dec Wage Diff 158

15 Pie Diagram - Satisfaction Level of Workers on informing Right 160

16 Pie Diagram - Satisfaction Level of Workers on Workers Educat 162

17a Diagrammatic Presentation of Means of Workers Variables 165

(Bar Diagram)

xii

17b Diagrammatic Presentation of Means of Workers Variables 165

(Line Graph)

18 Pie Diagram - Satisfaction Level of Employers on Productivity 184

Efficienc Increase

19 Pie Diagram - Satisfaction Level of Employers on Workplace 184

Harmony

20a Diagrammatic Presentation of Means of Employers Variables 188

(Bar Diagram)

20b Diagrammatic Presentation of Means of Employers Variables 188

(Line Graph)

21 Diagrammatic Presentation of success of unions 189

(Success Matrix)

xiii

LIST OF TABLES

Table Page

1 Responses of Workers of ARL Organizational Mean Calculation) 112

2 Responses of Workers of CDA (Organizational Mean Calculation) 113

3 Responses of Workers of IESCO (Organizational Mean Calculation) 114

4 Responses of Workers of KTM (Organizational Mean Calculation) 115

5 Responses of Workers of OGDCL (Organizational Mean Calculation) 116

6 Responses of workers of PCP (Organizational Mean Calculation) 117

7 Responses of workers of PTCL (Organizational Mean Calculation) 118

8 Responses of workers of PTV (Organizational Mean Calculation) 119

9 Responses of workers of SNGPL (Organizational Mean Calculation) 120

10 Responses of workers of ZTBL (Organizational Mean Calculation) 121

11 Responses of Management of ARL 122

12 Responses of Management of CDA 123

13 Responses of Management of IESCO 124

14 Responses of Management of KTM 125

15 Responses of Management of OGDC 126

16 Responses of Management of PCP 127

17 Responses of Management of PTCL 128

18 Responses of Management of PTV 129

19 Responses of Management of SNGPL 130

20 Responses of Management of ZTBL 131

21 Mean calculations-wage rise (Wris) 133

22 Mean Calculations - Bonus (Financial Benefits) (Fbft) 135

23 Mean Calculations - Job Security (J-sec) 137

24 Mean Calculations - Time Reduction (Td) 139

25 Mean Calculations - Health Facilities (Hfac) 141

xiv

26 Mean calculations- Children Education (Ced) 143

27 Mean Calculations - Over Time Payment (Ot) 145

28 Mean Calculations - working conditions (Wcon) 147

29 Mean Calculations- leaves facility (Linc) 147

30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb) 151

31 Mean Calculations -Recreation facilities (Rfac) 153

32 Mean Calculations - training opportunities (Top) 155

33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) 157

34 Mean calculations - informing about rights (Ir) 159

35 Mean calculations - workersrsquo education (We) 161

36 Summary of means of workers variables and calculation of combined 163

mean

37 Chi square calculations wage rise (Wris) 167

38 Chi square calculations - Bonus (financial benefits) (Fbft) 168

39 Chi square calculations - Security (Jsec) 169

40 Chi square calculation - Time reduction (Td) 170

41 Chi square calculations - Health facilities (Hfac) 171

42 Chi square calculations - Children education (Ced) 172

43 Chi square calculations - Overtime payment (Ot) 173

44 Chi square calculations - Working conditions (Wcon) 174

45 Chi square calculations - Leaves facility (Linc) 175

46 Chi square calculations - Post retirement benefits facility (Prb) 176

47 Chi square calculations - Recreation facilities (Rfac) 177

48 Chi square calculations - Training facilities (Top) 178

49 Chi square calculationsndashDecreasing workers officers wage salary gap(Wdf)179

50 Chi square calculations - Informing about rights (Ir) 180

51 Chi square calculations - Workersrsquo education (We) 181

52 Calculation of mean of Management responses for unionsrsquo 183

efforts for Productivity Efficiency increase (Pin)

xv

53 Calculation of mean of Management Responses for

Workplace Harmony (Wph) 185

54 Calculation of Combined Mean of Management Responses (Se) 187

55 Facilities of Temporary Workers (Not Union Members) 190

56 Facilities of Permanent Workers (Union Members) 191

57 Essentiality Inter unions Relations and Unions status Compared to Past 193

xvi

LIST OF ACRONYMS

AFL-CIO- American Federation of Labor ndash Congress of Industrial Organizations

AFSCME- American Federation of State and County Municipal Employees

BEST- Basic Education and Skills Training

CBA ndash Collective bargaining Agent

CLR - Campaign for Labor Rights

CC OO-the Confederacion Sindical de Comisiones Obreras(Spain)

CFDT - Confederation Francaise Travail (Niger)

CNSS- National Social Security Scheme (Niger)

CNT- Confederation Nigeacuterienne du Travail

COSATU - Congress of South African Trade Unions

CO2- carbon dioxide

CROC- Revolutionary Confederation of Workers and Peasants (Mexico)

CSD- Commission on Sustainable Development (UNO)

DGTU- Director General of Trade Union (Malaysia)

ECEC ndash Employersrsquo Cost for Employeesrsquo Compensation

EPI- Economics Policy Institute

FAO- Food amp Agricultural Organization

FMLA- Family Medical Leave Act (USA)

xvii

HKDF- Hong Kong Democratic Federation

ILO- International Labor Organization

ITF -International Transport Workersrsquo Federation (ITF)

LDC ndash Lower Division Clerk

LIUNA- The Laborers International Union of North America (USA)

LO- Landsorganizationen i Sverige (Swedish Federation of Trade Unions)

LPL Laborers Political League

MNC- Multi National Corporation

NLRB- National Labor Relation Board (USA)

NMU - National Maritime Union

NTUC National Trade Unions Confederation (Singapore)

OECD- Organization for Economic Cooperation and Development

OSHA- Organizational Safety and Health Act (USA)

PSI- Public Services International

PWF- Pakistan Workersrsquo Federation

SDF- Study Development Fund (Singapore)

SRP ndash Skill Re-development Program (Singapore)

TUAC-Trade Union Advisory Committee to the OECD (TUAC)

TUC - Trade Union Congress

UDC - Upper Division Clerk

UGT- Union General de Trabajadores (SPAIN)

xviii

UI-Unemployment insurance

UK ndash United Kingdom

UNDP United Nations Development Program

UNEP- United Nations Environmental Program

USA ndash United States of America

USTN - Union des Syndicats des Travailleurs du Niger

WERS ndash Workplace Employee Relation Survey (USA)

WHO- World Health Organization

WISE- Workers Improvement through Secondary Education (Singapore)

WRTP Wisconsin Regional Training Partnership

WTO- World Trade Organization

xix

ACKNOWLEDGEMENTS

All glory and praise to God Almighty Who bestowed his blessing upon me in my

life and now enabled me to accomplish this research work

I am greatly indebted to my honorable supervisor Dr Zafar Mueen Nasir Chief of

Research (PIDE) presently Director (Policies) Policy Planning Cell Labor and

Manpower Division Ministry of Labor Manpower and Overseas Pakistanis Government

of Pakistan whose encouraging kind valuable and timely guidance enabled me to

complete this study

I feel pleasure to place record of my deep sense of thankfulness to Professor Dr

Rasheed Ahmed Khan Dean Faculty of Management Sciences and Prof Dr Allah

Bakhsh Dean Faculty of Education National University of Modern Languages Islamabad

Prof Dr Sarfraz Ahmed Mian Chairman Department of Economics University of Arid

Agriculture Rawalpindi Prof Dr Irshad Ahmed Department of Statistics Allama Iqbal

Open University Islamabad and Dr Khalid Masud Visiting Faculty Member Allama

Iqbal Open University Islamabad for their guidance in this research

I am heavily indebted to my family for the time they sacrificed for me during my

studies Their constant support and encouragement helped me to complete this difficult

task

No acknowledgement could even adequately express the thankfulness to my

friends who have always been encouraging me for educational achievements

At the end I pay thanks to all those who were directly or indirectly involved in the

completion of my thesis

CHAPTER 1

INTRODUCTION

When planning for one year theres nothing better than planting grain when

planning for ten years theres nothing better than planting trees when

planning for a lifetime theres nothing better than planting men

Chinese philosopher Guanzi (551 - 479 BC)

11 BACKGROUND OF STUDY OF HUMAN RESOURCE DEVELOPMENT

Human Resource Development is an important discipline of present time It is

considered by scholars of Business Administration as a sub discipline of Human

Resource Management (HRM) concerned with developing productive skills by

imparting them training Werner and DeSimone (2006 p5) defined Human Resource

Development (HRD) as ldquoa set of systematic and planned activities designed by an

organization to provide its members with the opportunities to learn necessary skills to

meet current and future job demandsrdquo Werner and DeSimone (2006) described HRD

as a function of HRM According to Rao (1995) the scope of HRD is extended at one

side to developing competencies of human resource by enhancing knowledge

building skill changing attitude and teaching values and at other side creation of

conditions through public policy programs and other interventions to help people to

apply these competencies for their own and othersrsquo benefits and making things

happen Bacchus (1992) asserted that the ultimate goal of HRD in any country is lsquoto

improve the quality of life of all itrsquos people and not merely concerned with providing

necessary skills to individuals The concept of HRD deals with many facets of

development of individuals including their physical intellectual emotional political

and spiritual aspects

People earn their food and living by working and engage themselves in

productive activities for which a combination of both physical and intellectual

2

development is important Physical development comes from good nourishment and

medical care Intellectual development comes through the process of education and

socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life Thus all aspects of development are integral part

of HRD According to Rao (1995) ultimately what is important is human satisfaction

and the quality of life Developing people is the essence of any HRD effort and it is an

important goal of all other development activities (plans policies programs

establishment of new structures mechanism) All forms of development (economic

technological ecological agricultural industrial etc) are ultimately meant to serve

people in terms of improving their happiness through better quality and standards of

life

The focus of the present study is on improvement of quality of life of workers

due to unionrsquos active role in negotiating higher wages and good working conditions

for them because workers of any organization have weak bargaining power as

employees without their collective representation by a labor union Labor unions exert

their pressure to convince or compel the employer to extend financial benefits ie

good wages bonuses and allowances and non financial benefits ie health facilities

better working conditions recreation facilities training opportunities job security

facilities for education reasonable daily working hours and paid leaves

These facilities improve the living conditions of workers who in turn exert

more efforts to enhance their productivity and profit of the organization

12 EXISTING PROBLEM

Presently in Pakistan the supply of labor is more than its demand causing

unemployment in the country The unemployment rate in Pakistan is estimated as 53

percent in 2006 -07 (LFS 2007) Due to surplus supply of labor its price (wagesalary)

3

is low Government has raised minimum wage recently to Rs 6000- per month which

was only Rs 4600- per month

With this limited income workers can not meet their needs making them

healthy and motivated to work efficiently and dedicatedly Management builds the

skills of workers by training to increase their performance and efficiency but even if

workers are skillful and well trained their performance may not be up to mark of

satisfaction until they are not physically healthy mentally satisfied and motivated or

developed in HRD context But employers usually do not pay attention towards this or

do not desire to pay good remuneration or provide better atmosphere in the pretext of

higher labor cost Unions try to convince or compel the employer for better

remuneration and better atmosphere

If unions are playing a role by protecting the rights of workers and making

efforts to secure benefits for them then the membership of unions must increase but a

declining trend in membership of unions has been observed globally Freeman and

Medoff (1984) Hyman (1999) (Jose 2000) Hirsch and Schumacher (2000) Machin

(2000) Bryson (2001) Saavedra and Torero (2002) Ebbinghaus (2002) Knox (2004)

and Eisenbrey (2007)

The question is (1) why workers are not joining labor unions (2) Are unions

not protecting the rights of workers or exerting efforts for securing benefits for them

A few research studies have looked at the negative image of the labor unions

Ghayur (1996-a) has pointed out that quiet often labor unionism is seen as undesirable

intervention in the smooth functioning of organizations with out realizing the positive

contribution it could make towards industrial peace harmony and progress Employers

allege that labor unions only talk about workersrsquo rights and ignore their obligations

They believe that unions are largely responsible for low productivity and lower

production

4

13 PURPOSE OF RESEARCH

The purpose of this research is to answer three questions

1 Are unions protecting the rights of workers or exerting efforts for

securing benefits for them

2 Do labor unions play any role in promoting physical intellectual and

emotional development of workers and

3 Do unions put any effort to enhance the productivity of the workers and

improve peace at place of work

The effectiveness of trade unions in promoting HRD is determined by some of

the benefits workers receive due to unions Particularly the focus is on the role of

unions in

1 Securing financial benefits for workers in the form of wage rise

bonuses and other allowances

2 Securing non financial benefits for workers like health facilities

workersrsquo education better working conditions decrease in working

hours increase in annual leaves training opportunities etc

3 Giving the workers sense of awareness about their rights

4 Improving the productivity or efficiency of the employees

5 Making harmony at work place between the management and

employees and making efforts for a peaceful industrial atmosphere

14 RESEARCH QUESTIONS

1 To what extent the unions in Pakistan are effective in development of

HR by securing benefits for workers such as

i) Wage rise

ii) Fringe benefits like Bonus

5

iii) Job Security

iv) Time decrease or resistance against time increase

v) Health or Medical treatment facilities

vi) Education facility

vii) Overtime payment

viii) Better working conditions

ix) Leaves increase or resistance against leaves decrease

x) Post-retirement benefits like pension

xi) Arranging recreation facilities

xii) Training opportunities

xiii) Decreasing wages inequality

xiv) Informing workers about their rights

xv) Children education facility

2 To what extent the unions in Pakistan are effective in promoting

employersrsquo interest by developing HR by putting efforts in

i) Motivating workers for increasing productivity improving

efficiency

ii) Improving peace and harmony at workplace

The answers of these questions will determine the effectiveness of unions in

promoting Human Resource Development (HRD)

6

15 SIGNIFICANCE OF THE RESEARCH

The findings conclusions and recommendations of the study will be beneficial

for

1- Governmentrsquos labor policy maker to frame out workers friendly

policies

2- Employers while deciding workers benefits

3- Unions while demanding facilities for workers

4- Workers while making decision of electing their unionCBA

5- Industrial Relations researchers to search further in the matter

16 LIMITATIONS OF RESEARCH

The limitations of the study are

1 The sample covered in the study is only individuals of Rawalpindi Islamabad

and therefore the results can not be generalized to whole of Pakistan

2 The role of trade unions in promoting HRD is measured through employeersquos

benefits and that too is based on the responses of the workers which may

introduce biasness in the results

3 The scale used in the questionnaire for measuring performance of unions is

arbitrary and that too can introduce bias

CHAPTER 2

LITERATURE REVIEW

lsquoHealth and strength physical mental and moral are the basis of industrial wealth while conversely the chief importance of material wealth lies in the fact that when wisely used it increases the health and strength physical and mental and moral of human race

Alfred Marshall (1890) quoted in World Bank Report (1991) 21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT

The ultimate goal of human resource development is to improve the quality of

life of people The human resource development strategy is not merely providing

necessary skills and enabling workers to secure employment rather it encompasses all

those activities which lay the foundation for a fuller and more productive utilization of

the total human resources The concept of HRD implies physical intellectual

emotional political spiritual and all other facets of human development Food

nutrition and freedom from disease are important inputs which make people

productive members of a nation Physical development comes from good nourishment

and medical care Intellectual development comes through the process of education

and socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life and ensure his comfort Thus all forms of

development of people can be included in the definition of HRD Rao (1995) wrote

8

that HRD leads to human satisfaction and the quality of life which is the ultimate goal

Developing people is an important goal of all development activities (plans policies

programs establishment of new structures mechanism) These developments

(economic technological ecological agricultural industrial etc) are ultimately meant

to serve people in terms of improving their happiness through better quality and

standards of life

Human resource development holds the key for economic development by

enabling people to become more productive because economic development depends

upon level of industrial activity which is dependent upon the productivity of human

resource Productivity of human resource depends upon its competencies and

conditions (through public policy programs and other interventions to help the

people) to apply these competencies These conditions are Physical fitness and

motivation Fashoyin (1997) opined that the workers in competitive economic

environment become more important agent in mobilizing all factors of production

towards achievement of a competitive advantage But this is possible by motivated

workforce And motivation of the workforce to commit itself to work and maintain

uninterrupted and effective operations further depends on satisfaction of workers

Worker would be healthy when they are well nourished and physically fit and

motivated when they enjoy better quality and standard of life This would be achieved

when they would receive proper share in the production or development in the form of

increased income or financial benefits enabling them to purchase potent diet

comfortable working conditions proper working hours leave for leisure recreational

facilities and self respect

Rao (1995) is of the view that productivity is determined by the number of

hours of work and its intensity And undernourished or sick person can not work long

or properly Absence of medical facilities further reduces productivity Increased

expenditure on food to the extent it raises productivity can be termed as investment

Better diet housing and control of communicable diseases have raised the quality of

life everywhere

9

A World Bank (1991) study quoted a text of 1890 of Alfred Marshall who

wrote that lsquohealth and strength physical mental and moral are the basis of industrial

wealth while conversely the chief importance of material wealth lies in the fact that

when wisely used it increases the health and strength physical and mental and moral

of human race By conducting some studies World Bank (1991) in its report

concluded that better health and nutrition raise workersrsquo productivity decrease the

number of days they are ill and prolong their potential working lives In Sierra Leone

a 10 percent increase in calories in-take of farm workers consuming 1500 calories a

day raised their output by 5 percent Similar results have been found among Kenyan

road construction workers By reducing morbidity and debility the malaria eradication

program in Sri Lanka in the 1940s led to a ten percent rise in incomes A study of

Basta et al (1979) on the rubber plantation workers in Indonesia revealed that

treatment of anaemic workers with iron tablets for a period of 60 days resulted in an

increase in productivity by 15 to 20 percent and the per capita cost of these tablets was

$ 008 Levin (1986) found that out put increases by about 10 to 20 percent for every

10 percent rise in haemoglobin level

Rao (1995) mentioned study of Behrman and Deolalikar (1998) who came to

the conclusion that lsquoNutrientrsquo intake might affect productivity without altering

indicators of health status because nutrient changes may be transferred largely to

energy expenditure change including that are productivity related

World Bank (1991) concluded after analysis of household survey data from

nine countries suggesting that economic effects of illness may be substantial An

average adult worker in Peru might expect to be ill 45 days a month and misses about

one day of work as a result in Ghana the corresponding figures were 36 and 13

days In the United States workers aged between 18 and 44 miss on an average one

quarter of a dayrsquos work in a month

If workers are unsatisfied they will quit the organization Quah (1993)

analyzed the studies of human resource development in four countries ie Japan

Singapore South Korea and Taiwan and concluded that comprehensive reforms are

needed in public personnel management in the direction of attracting retaining

10

developing and utilizing competent employees Rao (1995) expressed that people will

be un-satisfied and lose motivation if not properly paid They will quit the

organizations causing increase of turnover and leading to increased expenditure of

selection recruitment and training

From the above discussion it is revealed that HRD is to develop competencies

of the people and improving their health and quality of life by providing them better

share in the income of country or any firm in the form of better salary and other

financial benefits (bonus health allowance education allowance recreation

allowance etc) boasting their motivation by reducing the remuneration gapes between

different categories of people providing them more leisure by reducing working

hours comforting their lives by bettering work places and developing socially by

giving them representation freedom of expression and satisfying them by providing

security of job and removing their fears

For expressing the importance of HRD Tan (1996) quoted the saying of a

Chinese philosopher Guanzi (551 - 479 BC) that

When planning for one year theres nothing better than planting grain

when planning for ten years theres nothing better than planting trees

when planning for a lifetime theres nothing better than planting men

In his own words Guanzi explained that grain is something that is planted once

and produces only a single harvest Trees are planted once but may produce ten

harvests Men are things that are planted once but may produce a hundred harvests

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS

Workers or labor class is the major and most important human resource of any

country and they are developed through better quality and standards of life But

workers remained undeveloped because of being under privileged deprived and

victim of the exploitation of employer Khan (1992) mentioned that labor was

considered as a commodity and was subject to economic laws of supply and demand

11

Conditions of workers remained area of concern for centuries particularly after

the industrial revolution No doubt industrialization as a consequence of industrial

revolution was most forceful process in the known history that brought many

comforts in human life But it is a very bitter fact that this revolution also brought

problem of exploitation of workers who became enslaved to the dictates of machines

and capital owners under their profit motives According to Shafiq-ur-Rehman (2003)

employers exploited workers for maximizing profit Colman (2000) wrote about USA

that the industrial revolution for the first time brought thousands of women and

children in the workforce In New England textile mills used to employ young

unmarried daughters of farmers and these textile lsquomill girlsrsquo often worked 12 to 15

hours a day lived in strictly supervised company boarding houses had to be silent

during work and could be fired for using profane or improper language

Situation is still bad at some places and according to ICFTU (nd) report in

Guatemala in some factories workers usually work for 9-10 hour a day and paid

between $1 and $2 per day and sometimes they are forced to work as long as 18 hours

In some factories to meet the demand of large orders workers are given

amphetamines so that they can work 60 hours without stopping

Similarly Amnesty International (2002) also reported that in China the plight

of workers is serious and there are widespread violation of international standards

causing serious injuries and deaths

One reason of these hardships in the words of George (2004) is that a majority

of working people possess labor as their only resource to carry on with their lives

There was a need of a system encompassing institutions dedicated for the

protection of workers and solution of their problems as well as to maintain industrial

peace

Therefore institution appeared in the form of labor unions and system appeared

in the form of Industrial Relations

12

Industrial relations is a tripartite system having government employers and

labor unions as its three components The Wikipedia defines this as

ldquoField of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union

Governments set the framework for labor relations through legislation and

regulationrdquo (Wikipedia-a)

221 Emergence of Labor Unions

The exploitation of workers led them to unite for the solution of their problems

at a platform This platform was labor union In the words of Brohawn (nd) the union

was democratic societys original answer for addressing injustices at the workplace

which attended the birth of the Industrial Revolution In fact unionism was born to

bring social and economic justice for working people Ehrenberg and Smith (1985)

asserted that labor unions are the organizations whose primary objectives are to

improve the pecuniary and non pecuniary conditions of their members Workers

expected their unions to fight for their rights by organizing and financing strikes

According to Shafiq-ur-Rehman (2003) workers formed unions which had to adopt a

confrontational approach towards the employersAbout influence of unions Thomas

(1999) wrote that trade unions are a large organized group in civil society which

brings a unique contribution to the development of community because of direct

involvement with economic systems of production and distribution They also

influence the course and content of employment and social and economic policies

What were and still are the problem of union making are discussed in

following lines

222 Unionization Problem

Emergence of unions in every country and society was and is still a difficult

evolutionary process Literature has shown that organization of workers was not an

easy task and unions had to bear the wrath of state and employer and those whose

13

interests were against unionization Unionization is the democratic right which has

been acknowledged in UNO declaration of human rights and by ILO conventions

2221 Opposition of unionization by state

Rizvi (1973) a Pakistani author wrote that government is one of the important

parties in the industrial labor relations especially when there is high elasticity of

demand but low elasticity of supply of labour But what has been the role of

governments is narrated in lines below

Ghayur (1996-a) wrote about Pakistan that State has also erected barriers by

framing laws discouraging to unionization to maximum extent by imposing difficult

conditions to fulfill particularly in registration Government of Pakistan has

established Export processing Zone (EPZ) in Karachi which is exempted from the

application of certain labor laws especially the right to form a union and to go for a

strike Ghayur also wrote that in Pakistan unionization and collective bargaining is not

permitted to all public sector employees and activity has been brought under Essential

Services Act in many public sector organizations

According to report on lsquoHuman Development in South Asia (2003)rsquo in

Pakistan lsquothe Essential Services Management Act of 1952rsquo was the first hurdle in the

history of the unionization process of Pakistan It restricts the freedom of association

and collective bargaining rights of various groups of workers Employees of Pakistan

International Airlines (PIA) Pakistan Television Corporation and the Civil Aviation

Authority (CAA) as well as workers in postal teaching electric supply and radio

stations can form unions but cannot join a strike The workers in the EPZs are also

denied their trade union rights in Pakistan Export Processing Zones Authority

Ordinance (EPZAO) of 1980 and Export Processing Zone Rules (EPZR) of 1982

exempt the workers in EPZs from the provisions of IRO Workers in EPZs cannot

establish trade unions bargain collectively or organize a strike

Similarly Pakistani researchers Abbas and Hussain (2007) wrote about

Pakistan that a range of restrictions deter the activities and effectiveness of union

organizers One of such laws that restrict trade union activities is the Essential

14

Services Maintenance Act of 1952 (ESA) which includes government services and

State Owned Enterprises (SOEs) like power generation and transmission energy

production ports and the state-owned airline This law generally invoked to ban

strikes and is also used to hold back the right to collective bargaining

Human Rights Watch (1998) reported that in China making of independent

trade unions was illegal union makers were suppressed by the government and their

leaders were imprisoned There is one official union the All China Federation of

Trade Unions (ACFTU) which is under the control of the Communist Party which

appoints all union officials All workplace unions must be affiliated to the ACFTU

Amnesty International (2002) also reported that in China independent labor unions are

not permitted and All China Federation of Trade Unions (ACFTU) a government

controlled trade union is the only national body which governs trade unions activity

but workers had been struggling to create independent trade unions as an alternative to

the ACFTU since the late 1980s For example in May 1989 groups of workers in

various cities formed Workers Autonomous Federations (WAFs) but they were short-

lived and banned by the authorities and later in a crackdown on 4th June 1989

organizers were arrested and prosecuted on counter-revolutionary charges Since

1989 workers made other attempts to form independent trade union but they were

again jailed In 1994 workers who attempted to set up the League for the Protection of

the Rights of Working People (LPRWP) were arrested in Beijing

Bernard (1998) reported about USA that Supreme Court decisions rolled back

union and worker rights as well as amendments to labor law have restricted union

organizers while freeing management to penalize workers who attempted to exercise

their rights

UNDP (2000) in its report quoted that ICFTU in a Press Release dated 6998

reported that in 1997 nearly 300 trade unionists were killed for attempting to organize

labor unions 1681 were tortured or subject to physical mistreatment 2329 were

detained by police or military units and nearly 3500 were intimidated Press release

also alleged that even in United States an estimated 10 percent of workers

15

campaigning for unions are illegally fired 21427 workers lost their jobs in year 1998

for union activities

UNDP (2000) report further revealed that in developed countries despite the

force is not employed as frequently as in the third world many western nations still

have strong pro-corporate factions that have tried to render labor unions powerless

through legislative channels As Kremer and Olken (2001) expressed that even in

USA union formation is not so smooth and under Federal law covering most

industries if 30 of workers sign a petition calling for an election a certification

election supervised by the NLRB is held A union is recognized if more than half the

workers vote for it

Similarly Amnesty International USA (2005) reported that in Philippines

despite the government has ratified 22 of the International Labor Organizations (ILO)

conventions on labor standards including convention No 87 and No 98 the ILO has

received several complaints of non-compliance with these conventions Complaints

including instances of alleged extra-judicial execution of trade union leaders have also

been received

Even after union formation governments hamper the smooth functioning of

unions by different means DeSilva (1997) reported that South East Asian countries

took measures to restrict trade union actions and control unions as well as to avoid

union multiplicity However in some countries government has favored unionization

Government in Thailand for development of sound workplace labor relations

encouraged employers and employees and their organizations by initiating a program

Similarly in Japan workplace relations have been facilitated by the enterprise-union

system because many issues relating to competitiveness needed to be addressed at the

enterprise level and it has also been realized that competitiveness can be enhanced

through sound labor relations Nathanson and Associates (1999) wrote that in Israel to

avoid collective agreements the government as an employer is reducing the

proportion of permanent tenured employees and hiring more and more of its

employees through temporary manpower agencies in the public service and it is very

difficult to organize these temporary workers Waisgrais (2003) reported that in

16

Argentina attempt was made by the state to dismantle the trade union apparatus by

measures such as the suspension of all union activity the abolition of negotiations the

revocation of the right to strike and the removal of social work from the unionsrsquo

sphere of activity

2222 Opposition of unionization by employer

Employers in some countries lose no opportunity of exploiting the workers in

the form of paying low wages and other facilities but unions offer resistance and try

to protect rights of workers Employers put hurdles in the work of unions at the time

of union registration and defame the unions by charging that unions are corrupt It has

been elaborated in lines written below by quoting relative researches

Mills (1994) wrote that management has been hostile to unions during most of

American history American employers mostly opposed the growth of unions often

with the help of the law and the courts and in periods of conflicts federal and state

governments more frequently supported employers instead of unions

Brohawn (nd) expressed that unions are considered by most business

executives to be the kiss of death Small businesses in particular fear unions as an

outside force antagonistic to the interests of the company

Khan (1992) wrote about Pakistan that when worker gets job he becomes

reluctant to take part in unionrsquos affairs for fear of being victimized by management so

a common worker does not care to join a trade union So he concludes that in Pakistan

labor is still unorganized and has not been able to develop a sense of unity

Ghayur (1996-a) also analyzed that in Pakistan every effort was made in

private sector to resist union formation in private sector so if employer does not favor

the formation of union the matter can be prolonged for years Even foreign

companies resist as in Pakistan union of Korean Company (Daewoo) constructing

Motorway could not be registered despite of their best efforts Shafiq-ur-Rehman

(1973) pointed out unsatisfactory relationship between participants of industrial

relations in Pakistan and other developing countries and asserted that attitude of

17

employer is still very authoritative and paternalistic requiring a higher degree of

obedience and loyalty from their working force Their practical strategies have been to

insist on and claim all economic and non economic rights and for get about their

duties

Human Rights Watch (1998) also referred that South Korean companies

operating in Asia have been accused from all quarters of violating workers rights in

Vietnam China and Indonesia The Daewoo Construction Company did not allow the

free functioning of trade unions The case of the Daewoo Motorway Project in

Pakistan which began in 1991 where ten thousand employees were working on the

motorway between Lahore and Islamabad had been reported of use of violent physical

abuse against workers A complaint for this was lodged with the ILO

Employers are hampering the unionsrsquo activities in many ways as Hyman

(1999) expressed that Management always had hostile attitude towards unions In

some countries there has been a growing unwillingness by employers to accept trade

unions as collective representatives of employees while in other countries if collective

bargaining has survived its scope has been reduced and managements have

established new forms of direct communication with employees as individuals In a

report about Lithuania Dovydeniene 2002) wrote that employers strictly forbade their

employees to join unions and threatened to dismiss anyone who showed initiative or

took part in any union activity Workers threatened by unemployment had little

choice in the face of such exploitation

Bray et al (2005) asserted that according to AWIRS (Australian Workplace

Industrial Relations Survey) 1995 overall 88 of managers indicated a preference not

to deal with trade unions and only 7 of unionized workplaces believed that unions

effectively represented the interest of their members

223 Why Workers Join Unions

Bray et al (2005) wrote that people join unions because of dissatisfaction with

economic aspects of job a desire to influence those aspects of the work environment

18

through union-oriented means and a belief that the benefits of unionism outweigh the

expected costs

Holley jr et al (2001) expressed that employees join unions when they are

dissatisfied with physical characteristics of workplace low wages lack of benefits and

believe that unions will help them to achieve them job related conditions Like all

formal organizations unions also satisfy the membersrsquo need by providing means

enhancing a sense of identity and maintaining self-esteem They satisfy the workersrsquo

need of affiliation belonging and status that is at higher level than improved wages and

working conditions

Aidt and Tzannatos (2001) asserted that the desirability of unions depends on

many factors including (a) what unions do (b) how collective bargaining is

organized and (c) the effectiveness of dispute resolution mechanisms

According to Shafiq-ur-Rehman (2003) reasons behind workersrsquo joining

unions are lsquohigher wages and better working conditionsrsquo lsquojob securityrsquo lsquosocial needsrsquo

lsquoPeer groups pressurersquo and self fulfillment

Freeman (2007) analyzed that 70 of workers in 2005 believed that employers

fell short in providing regular cost-of-living raises to employees So workers tendency

towards unions has increased during last decade Freeman on the basis of his

researches with his companions based on WRPSs (Worker Representation and

Participation Surveys) 1990 and 2006 concluded that workers today want as much or

more of a voice in their workplace than they did in the 1990s and want a workplace-

committee form of representation The proportion of workers who want unions has

risen substantially over the last 10 years and workers want unions more than ever

before Because there are substantial gaps between workersrsquo desire to influence the

decisions and their actual influence in several important features of workplaces Bread

and butter gaps relating to issues of benefits and pay are greatest followed by the gaps

of training issues The gap between issues of what workers want in deciding how to

organize their work is smallest

19

The issue at the heart of this paper is to discuss the role of unions in making

efforts for solving the problems of workers in relationship with employers and in

relationship with state or government To avoid this paper from becoming too lengthy

actual research has been restricted to determine the efforts of unions only and not the

quantitative measure of their outcome

23 UNIONS ROLE FOR WORKERS BENEFITS

There have been difficulties in union formation and after formations unions

have also faced a lot of problems while running their business Now it is to see what

the role has been played by unions for benefit of workers and to what extent unions

succeeded therein In this regard researches have been conducted in different countries

or regions in the past which show struggle of respective unions for benefits of workers

such as rise in wages decrease in wage inequalities improvement in working

conditions and living standard betterment in quality of life reduction of working time

job security more paid leaves better pension facility employer sustained insurance

facility health care and health insurance and better health and occupational safety

conditions workers training and education facilities workers family welfare and

cooperative facilities for workers giving the workers awareness of their rights

reducing the fear of employer promulgation of workers favoring laws getting the

enforcement of these laws etc and during this what attitudes unions adopted

aggressive or cooperative constructive or conflicting selfish or sacrificial peaceful or

militant Researches are here to support and endorse these points

According to Guisinger and Irfan (1975) government intervention trade unions

and employer himself are responsible for wage increase

Sennholz (1983) asserted that now it is acknowledged that all labor

improvements are an achievement of the combined efforts of labor legislation and

union activity The credits for this goes to humanitarian legislators and courageous

union leaders for phenomenal rise in wage rates reduction of daily hours of work the

disappearance of child labor the limitation of woman labor and many other results

20

Khan (1992) narrated that trade unions protect material standards of living for

their members and also achieve security of service status in society and self respect

for themselves

According to studies of Nathanson et al (1999) in Israel Inoue (1999) in Japan

and Fahlbeck (1999) in Sweden in socioeconomic field unions rose to the challenge

of meeting the changing requirements of an industrial society for example

established themselves as credible partners and provided a variety of services to

members such as mutual aid credit insurance housing and consumer services mostly

through cooperatives linked to union membership

Jose (2000) concluded that unions played a conduit role for turning economic

growth and prosperity to workers in the form of improved standards of living and the

benefits of collective bargaining in terms of wage and non-wage benefits particularly

as reduction of working time Unions also helped to maintain a wage structure which

minimized income disparities between workers He further expressed that trade unions

are to lead an initiative for a social minimum wage consisting of the right to income

security (security of job) and other entitlements such as education health shelter and a

safe environment (workplace) In Scandinavia the pre-eminent position enjoyed by

unions in terms of membership and influence over public policies was anchored in the

services that unions provided to their members

According to Hirsch and Schumacher (2000) on balance unions are detrimental

to company performance and economic efficiency but in addition to unionrsquos negative

effects unionrsquos representation and collective bargaining provide workers with varying

degree of workplace democracy collective voice monitoring of working condition

protection from discrimination and enforcement of contractual provisions

Lovell et al (2002) using data of Current Population Survey US Census

Bureau found that workers in the retail food industry who are union members have

significantly higher wages higher rates of health insurance coverage larger

employment-based contributions to health insurance premiums and higher rates of

pension coverage than non-union workers Full-time and part-time workers women

and single mothers in the retail food industry all benefit from union membership

21

Shafiq-ur-Rehman (2003) wrote about Pakistan that now role of labor unions is

broad based and in additions to their collective bargaining role unions are involved in

social educational and recreational activities He also expressed that unionization can

the morale and motivation of the work force by improving the nature of jobs or by

changing workersrsquo perception of their jobs

Robles et al (2004) are of the view that unions are also promoters of social

capital in the economy by representing workersrsquo petitions exerting a pressure aimed

to improve conditions at the workplace and acting as employeesrsquo voice easing

communication between workers and employer which leads to help degree of job

turnover consequently reducing training cost of new employees Robles et al asserted

about unionsrsquo role for wages that empirical evidence has shown that unions exert an

upward pressure on wages

231 Wage Rise

The difference of wages between unionized and non-unionized workers is

lsquounion wage premiumrsquo and a major reason of workersrsquo joining of unions Pencavel

(1995) asserted that a primary concern of labor unions is to raise the wages of the

workers they represent because they act as wage-makers rather than wage takers this

role identifies unions as monopolies and according to Bryson (2001) union recognition

by employer for pay bargaining is basis for union influence in the workplace

According to Aslam (1982) a Pakistani researcher wages are of great

significance in an economy because they represent income to the workers cost to the

business men and are a major source of their purchasing power and have an important

bearing on the level of economic activity

Freeman and Medoff (1984) concluded that wage effect of union increased in

the 1970s when unionized workers won wage gains exceeding those of their nonunion

peers It is greater for less educated than more educated workers for younger than for

prime-age workers and for junior than for senior workers and it is greater in heavily

organized industries and in regulated industries than in others As a result of the

existence of trade unions in some unionized firms workers in nonunion firms trying to

22

avoid unions through positive labor relations obtain higher wages and better

working conditions because of the threat of unionism

As per findings of Cassoni et al (2002) the unions increase both wages and

employment and promote investment because the firms substitute labor by capital

Below mentioned studies reveal quantitative unionsrsquo efforts in wage rise or

mitigating wage salary differences

Aidt and Tzannatos (2001) referred that workers either union members or

covered by collective agreements on average get a wage markup over their non

unionized (uncovered) counterparts which is almost 15 percent in the United States

and in most other industrial countries is 5 to 10 percent It appears high in Ghana

Malaysia Mexico and South Africa but relatively low in the Republic of Korea

Holley jr et al (2001) quoted that unionsrsquo wages ranged between 10 and 15

percent higher than non union wages They further analyzed that by 1970s the union

wage differential climbed to 20 to 30 percent This impact was more on wages of blue

collar younger and less educated employees

Belman and Monaco (2001) using the data source of Current Population

Survey 1973-1995 of US Census Bureau found that union membership remains an

important determinant of wages with members earning 18 to 21 more than their

non-union counterparts The earnings of truck drivers fell by 21 between 1973 and

1995 and the primary sources of wage decline and increased wage inequality have

been deregulation a declining manufacturing wage and declining union membership

Blanchflower and Bryson (2002) concluded that both in UK and USA despite

union membership is declining unions are able to raise wages substantially over the

equivalent non union wages and unions in the countries Australia Austria Brazil

Canada Cyprus Denmark Japan New Zealand Norway Portugal and Spain are also

able to raise wages by significant amount and estimates from their 17 examined

countries were averaging 17 percent However in countries like France Germany

23

Italy Netherlands and Sweden where union wage settlement spill over in to non-

union sector there is no significant union wage differential

Klaff and Ehrenberg (2003) using the data source of survey conducted in USA

by the Association of Higher Education Facilities Officers 1997-1998 investigated that

union coverage affected staff salaries at 163 US colleges and universities and

estimated a union salary premium of 9- 11

Cleveland et al (2003) using Survey data for Canadian childcare workers in

1991 found that the union impact on wages was 15

Mishel and Walters (2003) found that unions raise the wages of unionized

workers by roughly 20 and raise total compensation by about 28 They also found

that in USA according to estimates from household surveys in 1990s there was a union

wage premium ranging from 15 to 25 The unionizations impact on wages goes

beyond the workers covered by collective bargaining to affect nonunion wages and

labor practices eg in USA non-unionized high school graduates earned 20 to 55

higher wages in industries with 25 unionization than they did in completely non-

unionized industries

Hirsch (2003) also reported that in one study in 2001 the ECEC data showed a

large gap in benefits between union and non-union workers and hourly compensation

for nonunion workers was $1998 whereas compensation for union workers was $

278 Unions not only raise wages of unionized workers but also affect nonunion

wages albeit to a far lesser extent than union wages

Kang (2003) in a study in Singapore estimated approximate union wage effect

in the range of 02 to 32 percent

Waisgrais (2003) also narrated in a report about Argentina with reference to

several studies regarding the role of the unions and in particular to collective

bargaining that workers covered by collective agreements receive higher wages than

those who are not

24

Knox 2004 wrote that unionized workers are still doing well despite the

flagging numbers as in USA with 8 of workers in the private sector unions still

exercise real power over contracts and there are substantial wage mark-ups In Britain

that isnt the case theres no wage mark-up anymore

However according to several studies unions could achieve either marginal or

no improvement in wages Inoue (1999) revealed that in Japan the automatic annual

pay raise system is widely adopted and wages rise according to years of service

which serve as an indicator for skills In terms of real wages unions have gained

marginal improvements during the 1990s

Similarly Anyemedu (2002) found that in Ghana government considers wage

restraint as a means of attracting foreign investment Hence the government and

employers have succeeded in installing the capacity to pay of employers as virtually

the only factor to be taken into account in wage determination

232 Reduction in Wage Inequality

Labor unions also exert efforts for increasing equality and reducing

discrimination in wages of workers

Freeman and Medoff (1984) opined that unions raise blue-collar earnings

relatively more than white-collar earnings thus reducing inequality between those groups

Unions by adopting pay policies that limit managerial discretion in wage-setting reduce

inequality among workers in the same establishments and among different establishments

A study of The World Bank (1995) revealed that unions eliminated discrimination

of income between workers so during a study in the Republic of Korea in 1988-90 it was

found that unions placed great value on wage equalization and as a result the degree of

wage dispersion in the unionized sector was 52 lower than in the non-unionized sector

In Mexico union action also helped to reduce discrimination and another study using wage

data for 1989 concluded that in the nonunion sector men enjoyed a 175 wage

advantage over women with identical skills and experience but there was no significant

wage differential between men and women in the unionized sector Similarly the study

25

found a significant wage disadvantage for indigenous people in the non-unionized sector

whereas no discrimination in firms covered by trade unions

Stiglitz (2000) Senior Vice president World Bank mentioned admiringly the

role played by organized labor in developed countries in stabilizing industrial

relations preserving firm-specific knowledge and organizational capital and

mitigating the income inequalities

Aidt and Tzannatos (2001) also concluded that unions reduced the wage

differences particularly between unionized workers and skilled and unskilled workers

Card et al (2003) reported similar result that within workers groups of same

skill for union workers wage inequality is always lower than nonunion workers

233 Fringe Benefits

Sennholz (1983) stated that most people expect more from their work than

wages These things are fringe benefits and provide additional remuneration to

employees in the form of vacation and holiday pay sick pay the cost of pensions and

employer contributions to various benefit systems

Cleveland et al (2003) found that the union impact on fringe benefits was in

line with union effects found in other better-compensated work and they found

substantial returns to education occupational level and firm-specific experience

George (2004) concluded that the demand of workers for social justice is

justified and workers are entitled to an equitable distribution of the nationrsquos wealth on

the reasons that labor is an equal partner with capital and management and laborers

are the primary contributors to economic growth of a nation So the workers should be

paid a fair living wage for their labor and certain fringe benefits such as free

healthcare paid holidays and job security George reported that several claims such as

bonuses overtime payments working hours shift duty allowances gratuities

uniforms transport allowances and housing vehicle loans are negotiated between the

union and the employer

26

Carty (2003) referred that in Mexico Consequence of replacement of CROC a

government backed union by an independent union workers receive a wage increase of

10 and a 5 increase in cash benefits and attendance bonuses Workers now make

up to 40 more pay than they were making under the old contract

234 Job Security and Employment

As per analysis of Inoue (1999) for Japanese trade unions safeguarding their

members from any threat of unemployment has a special importance so Japanese trade

unions do not accept lay-offs During the 1950s and1960s there were many protracted

labor disputes caused by threatened dismissal Trade unions lost most of these big

disputes but the losses incurred by the companies were also enormous Therefore in

Japan there is a tacit agreement between labor and management to avoid massive lay-

offs as far as possible This agreement is manifest in employment adjustment practices

during the recession in the 1990

Wong (2000) expressed that employment security and fair distribution of the

benefits of economic growth have been the primary concerns of the labor movement in

Singapore

Farber (2001) quoted the Freemanrsquos analysis that ldquoworkers in union jobs are

less likely to quit reflecting the higher level of wages and benefits this is due to

unions provision of mechanism for lsquovoicersquo as an alternative to lsquoexitrsquo in addressing

workplace concernrdquo

Aidt and Tzannatos (2001) also concluded that in unionized firms voluntary

job turn-over is lower and the job tenure is longer The evidence on this finding from

Australia Japan Malaysia the United Kingdom and the United States seems quite

robust On the other hand layoffs particularly temporary layoffs are more frequent in

unionized firms than in non-unionized ones

According to Lee et al (2001) Labor unions in Korea strongly opposed the

introduction of redundancy lay-off by massive nation wide strikes

27

Unions also give courage and awareness therefore according to Mishel and

Walters (2003) Union members have significantly less anxiety about losing their job

or suffering other employer-imposed penalties for taking leave

ILO (1999) reported that the trade unions cooperated in Singapore with the

state and the employers in efforts to maintain full employment to set wages at levels

which maximize employment therefore unions have accepted temporary wage cuts in

order to save employment

Vedder and Gallaway (2002) asserted that unions are associated with lower

rate of growth in income and jobs Occupations and industries with high rates of union

density have had less vibrant job growth in recent decades Widespread unionization

of an industry is often associated with initial sharp declines in employment as the

steel industry demonstrates

Addison (nd) concluded from survey in UK and reported a retarding role of

unions in employment growth as unionized establishment in 1980s tended to grow 3

percent less per year than their non unionized counterparts Union plants were more

likely to be shedding labor and unions induced reduction in employment growth in

26 for 1989-90

To overcome loss of unemployment and slow growth in employment caused

by unionization unions played role in launching unemployment insurance schemes

and unemployment benefits Katz et al (1993) reported that unions in Sweden and

Denmark have played a constructive role in the administration of unemployment

benefits

Bernhardt et al (2002) studied the Wisconsin Regional Training Partnership

(WRTP) which is an association of 125 employers and unions dedicated to family-

supporting jobs in a competitive business environment and found that the WRTP

members have stabilized manufacturing employment and contributed about 6000

additional industrial jobs to it over the past five years

28

According to Mishel and Walters (2003) unionrsquos representation increases the

likelihood of an unemployed worker in a blue-collar occupation receiving

unemployment insurance (UI) benefits by approximately 23 They also referred that

role of unions is pivotal considering unemployment insurance acts as a stabilizer for

the economy during times of recession

Unions have also operated Unemployment Insurance themselves as Zutavern

(2005) reported the existence of unions operated voluntary unemployment insurance

schemes in Denmark Finland and Sweden

Budd and McCall (2004) using and analyzing data source of January 1996

Current Population Surveys Displaced Worker Supplement of US Census Bureau

found that eligible blue-collar workers laid off from union jobs are approximately 23

more likely than comparable nonunion workers to receive unemployment insurance

benefits

235 Time Reduction (Duty Hours)

Unions have struggled to minimize the duty time and working hours which

were once more than ten hours in a day or more than 70 hours a week (even more than

3000 hours a year) in 19th century But in 20th century are 8 hours a day or 40 hours a

week and in some countries even less than this However the level of success is

different in different countries

Colman (2000) reported that in USA in 1835 General Trade Unions in a

number of cities led a successful general strike to shorten the working day from

fourteen hours or more to ten hours and in Philadelphia a group of Irish laborers

struck for time reduction and marched through the city chanting lsquosix to sixrsquo In same

year in Dover New Hampshire girls and boys struck the cityrsquos mills and won a

reduction of hours from 135 to 12 hours per day Their effort succeeded after a

century and time was reduced to eight hours As Sennholz (1983) wrote that in USA in

1938 the federal government passed Fair Labor Standards Act which imposed

minimum wage rates provided for a 40-hour week and also allowed for overtime

work if paid at time and one half and it is public opinion that all labor improvements

29

are an achievement of the combined efforts of labor legislation and union activity ILO

(1999) reported that unions in Germany have negotiated for a 35 hours week in some

sectors and regions early retirement schemes part-time work educational leave and

family leave

Japanese Labor Union Rengo presented a reduction in working hours and

adoption of policies favoring labor Rengo sought the introduction of a five-day week

In 1993 Rengo adopted the policy delineated in the New Medium-Term Working

Hour Reduction Plan with the target of 1800 working hours by fiscal year 2000

(Inoue 1999)

This time reduction was prevailing everywhere at large extent as Aidt amp

Tzannatos 2001) wrote that hours worked is lower among unionized than non-

unionized workers This is true for both total and normal hours

Buchmueller et al (2001) also found that union workers work fewer hours per

week than non unionized workers and this difference was 3 hours from 1972 to 1984

and after 1992 this difference is one hour per week

Lee et al (2001) pointed out that in 1997 in Korea flexible working hour

system was allowed with maximum of 48 hours per week cycle with the condition that

one week average will not exceed 44 hours or 8 hour a day

236 Payment of Over Time

Aidt and Tzannatos 2001) pointed out that unionized workers are more likely

to get paid for the overtime work that they do

According to Mishel and Walters (2003) employer compliance with the

overtime pay regulation rose sharply with the presence of a union because unions

often report violations to enforcement agencies

237 Paid Leaves

Budd and Mumford (2001) asserted that in UK trade union is one possible

institution for improving work-life problem and a primary mechanism for trade unions

30

in this regard is to bargain for additional employer-provided family friendly policies

including parental leave and paid family leave Unions appear to positively affect the

provisions of parental leave and job sharing options

Union workers have one week more vacation time than non-union workers

Union workers generally spend on leave slightly more time for illness their own or

illness of others which is approximately 14 week per year as compared to one week of

non-union members (Buchmueller et al 2001)

Aidt and Tzannatos (2001) stated that fringe benefits are more commonly

found among unionized workers than among non-unionized ones (in Australia Japan

Malaysia the United Kingdom and the United States) Benefits can include severance

pay paid holidays paid sick leave pension plans and so on

Mishel and Walters (2003) expressed that union workers also get more paid

time off which includes having 266 more vacation than nonunion workers and

according to another estimate the union workers enjoy 143 more paid time off

including vacations and holidays

238 Working Condition

Working conditions are of very importance for workers because they affect

their performance and productivity Khan (1992) wrote that an industrial worker

spends at least 8 hours a day three hundred days a year and about forty to fifty years

of his life period at workplace If the lives of the industrial people are generally

healthy happy and agreeable it is necessary that working conditions should be

healthy congenial and attractive and work itself should be made as interesting as

possible and relations between workplace workers and management should be

friendly and cooperative Robles et al (2004) asserted that enhancement of working

conditions in turn may increase inputsrsquo productivity Unions exert efforts for pleasant

working conditions

31

Thomas (1999) stated that trade union movement in South Korea fought for

basic labor rights and improvement of working conditions and it also has widely

known assertive role in the processes of re-structuring

Wong (2000) narrated that in Singapore the fundamental role of trade unions

remained to ensure fair wages and working conditions and to improve the standard of

living and quality of life of workers

239 Health Care and Social Security

Unionsrsquo role in securing health safety and welfare benefits for employees has

been found in following studies

Weil (1992) in his study made a comparison of OSHA enforcement in union

and nonunion construction sites and found that union sites face higher probabilities of

inspection and receive greater scrutiny during inspections than do comparable

nonunion sites

According to Buchmueller et al (1999) the role of US trade unions in

obtaining health and welfare benefits for their members dates to the 18th century and

in Britain a greater inducement for workers to join the union was support in sickness

or unemployment They also reported that in USA due to collective voice and other

factors union effects on the provision of health insurance are likely to be large

therefore unionized workers are more likely than non-unionized workers to receive

health benefits and the difference is depicted by higher probabilities of insurance

offers and higher take-up rates for union workers They further wrote that plans

offered by union establishments are about 20 percentage points more likely to be fully

financed by employers (494 percent vs 296 percent) than employers of non union

establishments They also asserted that in health plans in unionrsquos establishments

proportion of health insurance premiums paid by employers was 14 percent higher in

union settings Buchmueller et al found that in USA union establishments are 153

percentage points more likely to pay the full premium of insurance for family

coverage as compare to non-union ones (276 percent vs123 percent)

32

Stiglitz (2000) admitted that unions have played role in Health and safety

standards and had played also role in improvement of working conditions for workers

According to another study by Jose (2000) Histadrut a trade unions of Israel

grew in strength until the early 1990s with an impressive membership based on the

provision of services notably health care

According to Farber (2001) union members receive a larger fraction of their

compensation in the form of health insurance and pensions

Budd and Mumford (2001) also reported that individuals represented by a trade

union are more likely to receive traditional fringe benefits such as health insurance and

retirement plans

Adji (2002) expressed that in the Niger the union representing employees

working for the national social security scheme (CNSS) is preparing a social fund

designed to provide a supplementary pension and to pay the 20 per cent of medical

expenses which are not covered by the national scheme In Niger the USTN is

developing a health insurance project

According to Hirsch (2003) unionsrsquo workers receive more compensation for

risks than non-union workers

Mishel and Walters (2003) narrated that ldquoUnions had provided labor

protections for their members in three important ways (1) By identifying where laws

and regulations are needed and getting these laws enacted (2) Providing information

to members about workers rights and available programs and (3) By encouraging

their members to exercise workplace rights and participate in programs by reducing

fear of employer retributionrdquo Mishel and Walters concluded that unionized workers

are given employer-provided health and pension benefits far more frequently as

compare to nonunion workers and also provided with better paid leave and better

health and pension plans Unions also reduce wage inequality between workers and

workers groups because they raise wages more for low and middle-wage workers than

for higher-wage workers more for blue-collar than for white-collar workers and more

33

for workers who do not have a college degree Union members are 60 more likely

to file an indemnity claim than nonunion workers They also mentioned findings

quantitatively that 835 of unionized workers have employer-provided health

insurance and only 62 of non-unionized workers have such a benefit Unionized

workers are 244 more likely to receive health insurance coverage in their

retirement Employers with unionized workforces also provide better health insurance

paying an 111 larger share of single worker coverage and a 156 greater share of

family coverage and deductibles for unionized workers are 18 less They concluded

that in USA implementation of OSHA seems highly dependent upon the presence of a

union at the workplace

ILO (2005) reported that every year some 22 million people in the world

succumb to work related accidents or diseases so it is the daily grass root work of

labor unions to ensure the compliance of health and safety regulations at work

2310 Post Retirement Benefits (Pensions)

Unions also have an eye on the life of workers after the end of service For this

they exert efforts either in the form of arranging employer contribution or launch their

own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is

shown in the several researches where unionized workers receive better pension

options and opportunities

Freeman and Medoff (1984) opined that unions alter the entire package of

compensation substantially increasing the proportion of compensation allotted to

fringe benefits particularly to deferred benefits such as pensions and accident and

health insurance which are favored by older workers These changes are on balance

to be viewed as a social plus

Bernard (1998) was of the view that trade unions in USA had been the most

successful labor movement in the world by enjoying the highest wage premium and

winning benefits like pensions health care and paid vacations for their members that

in other industrial countries working people could win only through political and

industrial action

34

Holley jr et al (2001) expressed that in 1999 unionized US employers per

hour paid benefit costs averaging $ 853 compared to non-union employer costs $466

These costs include pension payments payments for time not worked (such as

vacations sick leave paid rest and lunch breaks) insurance costs and legally required

payments (social security unemployment compensation)

Buchmueller et al (2001) reported that in 1983 union workers were nearly

twice as likely to participate as compare to non-union workers in an employer-

sponsored pension plan (766 percent vs 388 percent) and between the years 1988 to

1993 the unionrsquos effect on employer provision of retiree benefits increased

substantially and the unadjusted union effect rose from 101 percentage points to 167

percentage points

Similarly Mishel and Walters (2003) wrote that 719 of unionized workers

have pensions provided by their employers while only 438 of nonunion workers

enjoy this facility Thus unionized workers are 539 more likely to have pension

coverage

Ebbinghaus (2002) found that in Europe trade unions have gained or

enhanced their collective bargaining role in the area of private pensions in addition to

mandatory state pensions

2311 Training Opportunities

According to some researches unions are also taking interest in workers

training education and awareness either pursuing government or employers to arrange

training or arranging training programs themselves to build their skill and enhance the

earning capacity of workers

Therefore Aidt and Tzannatos (2001) wrote that unionized workers tend to

receive more training than their non-unionized counterparts especially company-

related training

Wong (2000) stated that in Singapore unions urged employers to invest in

training of workers and also negotiated training clauses in collective agreements and

35

sought to ensure higher subsidies from SDF for training of lower- skilled lower-

income workers She further wrote that NTUC and affiliated unions urged workers to

enhance their skills as a means to ensure employment security by keeping pace with

changing job requirements and to increase their earning capability in the longer term

In December 1996 to help workers to remain employable throughout life by providing

nationally certified skill training NTUC also approached employers to sponsor their

employees for skills upgrading programs On 30th June 1999 a total of 288 companies

had committed 21800 workers for SRP programs in five general launches and nine

sectoral launches since December 1996

Katz et al (1993) wrote that in many countries unions are involved effectively

in vocational education programs so Adji (2002) reported that in Niger The USTN is

running a project to provide low-cost training to workers and one of the unions is

organizing and training workers in the sectors which it represents In January 1999 an

international cooperation project was launched (ILODANIDA) with the aim of

supporting the efforts of USTN and CNT to provide workersrsquo education in the

informal sector The USTN is also running a training school and an agricultural

project

Booth et al (2003) using data of British Household Panel Survey 1991-96

found that union-covered workers were more likely to receive training and also

received more days of training relative to non-covered workers Among workers who

received training those with union coverage enjoyed greater returns to training and

higher wage growth than did those without

Shafiq-ur-Rehman (2003) mentioned about Pakistan that capitalist

entrepreneurs including the past governments have been least interested in

development and training but this situation has improved now and many employers

with encouragement from Skill Development Fund are actively training their workers

and provide all facilities to trade unions

TUC (2006) in a briefing paper reported that union presence has a significant

impact on the incidence of training Analysis of the 2003 Labor Force which showed

that 39 of union members had been engaged in some training in the previous three

36

months compared to only 26 of non-unionized employees TUC also reported that

employees get more training when the issue is negotiated with employers by unions

rather than employers simply consulting with unions about the organizations training

strategy TUC referred research by Francis Green 1996 which demonstrated that

unionized workplaces were 17 more likely to have a training centre and 11 more

likely to have a training plan TUC referred other studies such as of Heyes et al

(1998) showing that training is more likely to deliver benefits to members when

unions not only secure recognition from the employers but also play an active role in

decisions about what is provided and Metcalfs research who found that the pay-off

from engaging in training is also much greater for union members than it is for non-

unionized employees For male union members the post-training wage was 21

higher than the pre-training wage but the corresponding increase for non-unionized

male employees was only 4

Addison (nd) wrote that there are a number of theoretical arguments

suggesting that unions may stimulate training The British work on determinants of

training has generally reported positive effects He reported positive relations of

unionsrsquo recognition with the incidence of training and union recognition also leads to

increased hours or days of training

A study of Boheim and Booth (2004) showed positive relations of union

recognition with training in private sector

2312 Workersrsquo Education

Fahlbeck (1999) reported that in Sweden the extensive training and education

programs conducted by virtually all unions LO for example has a wide range of

educational programs and runs several schools Anyemedu (2002) also reported that in

Ghana the TUC has made the education of its members one of its priority concerns

The participants of conference on sustainable development (CSD 2001) evidenced it

by acknowledging that trade unions have developed capacity for workplace centered

education because unions are the foremost providers of adult education in many

countries

37

2313 Recreational and Social Services

Unions have rendered service in provision of social benefits launching

cooperative movement and arranging recreational facilities to workers Jose (2000)

wrote that unions over the years embraced a broader agenda including health care

leisure and recreation retirement and non-wage benefits from employment

Fahlbeck (1999) reported that unions in Sweden provide services regarding the

private lives of their members for examples unionrsquos actions include contracting

insurance policies for their members such as home and accident insurance In

addition unions can arrange private bank loans or provide collateral for a loan and

Swedish union LO has recently entered in the field of utilities About recreational

services Fahlbeck wrote that unions routinely assist members in realizing meaningful

activities during time off and also help in arranging vacations One of the leading

travel and tour operators in Sweden which also runs hotels is a creature of the LO

movement

ILO (1999) observed that in the newly industrialized countries unions have

played an important role in shaping social security systems that is different from

industrialized countries For example in Singapore unions provided welfare benefits

to members Workers and employers together contributed a significant share of their

earnings to the Central Provident Fund Unions also participated in mobilizing

savings The other example is of Hong Kong where unions have also pushed for the

establishment of a pension system although this has not yet been functional In the

newly industrialized countries unions have played an important role in shaping social

security systems such as in Singapore where unions provide welfare benefits to

members and also participate in a sophisticated mechanism for mobilizing savings

Workers and employers together contribute a significant share of their earnings to the

Central Provident Fund which has become an important pillar of the Singapore

economy In Hong Kong (China) unions have also pushed for the establishment of a

pension system although this has not yet been put in place

38

Thomas (1999) reported that in Singapore trade union movement adopted new

role being associated with the implementation of welfare schemes so he terms unionrsquos

this role in Singapore as accommodating model

Virmani and Rao (1999) reported that the unions in Singapore have started on

non bargainable activities to enrich workers lives as they are promoters of

cooperatives in transportation health care consumer cooperatives insurance etc by

running 8000 taxies and 47 cooperative supermarkets

Wong (2000) expressed that in Singapore in 1969 for a socio-economic

movement contributing to workers well being in the wider community the role of

trade unions was broadened beyond collective bargaining on terms and conditions at

the workplace To start a cooperative movement decision was made to pool resources

with the objective to provide services to which private businesses were not offering to

lower-income workers and to give workers a stake in the ownership and management

of business ventures It was also decided to return any surplus to worker and union

shareholders and to the labor movement Wong further narrated about provision of

recreational facilities that in Singapore in 1986 the NTUC pooled resources to set up a

union operated Club for affordable facilities for members and their families today

there are eight outlets in the Singapore Unions with corporate support developed at

state land large-scale projects like NTUC Pasir Ris Resort NTUC Sentosa Beach

Resort and NTUC Aranda Club for affordable holiday facilities within Singapore and

also sat up the Orchid Country Club for workers golfing accessible to all through their

union or personal membership For cooperatives Wong reported that in Singapore

NTUC established its first cooperatives in 1970 to provide insurance to ignored

workers now there are ten cooperatives ie Denticare Fair Price (supermarket)

Childcare Healthcare Food fare (cooked food) Choice Homes Eldercare Media

Thrift and Loan providing services to meet the diverse needs of workers and their

families

Stiglitz (2000) also acknowledged the highly constructive social and political

roles of labor movements in many countries in promoting adult education movement

39

the mutualism movement in the form of credit unions mutual banking mutual

insurance cooperatives friendly societies and other self-help associations

Ebbinghaus (2002) found that even in Europe now unions are involved in the

social policy area and participating in self-governing bodies of national social

insurance schemes

2314 Children Education

Song (1999) wrote in research report about unionsrsquo struggle in Korea that

working conditions have gradually improved with a shorter working day and for

better fringe benefits including childrens education and housing allowances

2315 Workers Awareness

Mishel and Walters (2003) reported that unions created awareness about laws

regarding health such as in USA about FMLAs existence and regulations Unions

have also given workers awareness about their rights so union members are about 10

more likely to have heard of the FMLA (in USA) and understand whether or not they

are eligible This is because of awareness given to them by unions

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY

The co-operative role of unions towards state employer and society by

exerting efforts to increase productivity and efficiency has been studied by several

researchers as quoted in following lines

241 Productivity Efficiency and Profitability

According to Hirsch (1997) productivity simply means output for given levels

of inputs A firm that is more productive than another can produce more output using

the same combination of inputs or equivalently produces the same output using fewer

inputs When increase in productivity is referred attributable to unions it means a real

shift in the marginal product schedule Hirsch concluded from many studies both

negative and positive effects of unions on productivity Even some studies show

negative as well as positive effects of unions on productivity at different times in the

40

same study Hirsch quoted about the effect of unions upon productivity that unions

increased total factor productivity by more than 20 percent

Shafiq-ur-Rehman (2003) is of the opinion that unions provide their members

both with protection against arbitrary management decisions and voice ant work place

and this will be not only increasing wages but productivity as well He further wrote

that collective voice face of unionism suggests important ways in which unionism can

raise productivity

There are surprisingly few manufacturing-wide or economy-wide productivity

studies and none reports consistent evidence of an overall positive effect of unions

upon productivity

Maki (1983) using aggregate Canadian data concluded that the shock effects

of unionization initially increase productivity levels but that unionism is associated

with slower productivity growth British studies of Nickell Wadhwani and Wall

(1992) and Gregg Machin and Metcalf (1993) for differences in productivity growth

between unionized and non-unionized firms evidenced that unions have either a

negative effect or no effect on productivity growth during the early years of their

analysis but positive effects during the 1980s Marshall (1987) is of opinion of

negative effects of unions on productivity and economic performance

A study of Morgan (1994) who used aggregate cross-sectional manufacturing

data across time found surprising results Morganrsquos estimates for the years around

1972 were of increasing productivity but declined steadily over time and were

negative during the 1980s

Fernie and Metcaf (1995) found that for one dimension measure the union

effect is negative but only marginally significant

Hirsch (1997) referred his own study based on a sample of 531 firms and

covering the period from 1968 to 1980 and provides the most comprehensive

treatment of unions effects on productivity growth where he found that union firms

are found to have substantially slower productivity growth than nonunion firms

41

Aidt and Tzannatos (2001) are of the view that the impact of unions on

productivity levels is empirically indeterminate Some studies suggest a positive

impact but others imply a negative impact or no impact at all For example unions

appear to have a negative impact on productivity levels in the United Kingdom but a

positive impact in Malaysia Regarding profitability Aidt and Tzannatos concluded

that net company profits tend to be lower in unionized firms than in similar non-

unionized firms (in Japan the United Kingdom and the United States) There seems

to be a relatively large negative impact on profitability in firms that have product

market power

Addison (nd) wrote about UK that early British evidence shows negative

effects of unionism on the productivity of firm and establishment but according to

later researches there is no short fall in unionized establishments during period of

1979-1984 and unionized firms increased their productivity most at the end of the

1980s There are several studies showing negative albeit least effects of unionism on

productivity as Gregg et al (1993) found that unions recognition affects negatively but

statistically insignificant effect during 1984-97 but positive and statistically significant

for 1988-89 (+3 to 4 ) Study of Conyon and Freeman (2001) revealed that union

effect is negative but statistically insignificant

According to Vedder and Gallaway (2002) Labor unions in contemporary

America have harmful aggregate effects on the economy They are associated with

lower rates of growth in income and jobs On balance people move away from union-

intensive areas to areas with relatively low rates of union density Occupations and

industries with high rates of union density have had less vibrant job growth in recent

decades Widespread unionization of an industry is often associated with initial sharp

declines in employment as the steel industry demonstrates The decline in union

density in the private sector in the past generation has been sharp and that decline has

added to the vitality of the economy at the beginning of the new century The

increasing weakness of unions in the market economy has contributed to economic

growth and a rising proportion of the working age population that actually works

42

From some researches evidences have been found that unions have worked for

enhancing the efficiency and productivity of workers Freeman and Medoff (1984) are

of the view that in many sectors unionized establishments are more productive than

nonunion establishments while in only a few they are less productive The higher

productivity is due to lower rate of turnover under unionism improved managerial

performance in response to the union challenge and generally cooperative labor-

management relations at the plant level

Eaton and Voos (1992) concluded that union firms are more likely than their

nonunion counterparts to be involved in workplace innovation such as those of

cooperative arrangements like teamwork and production gain sharing which yield

higher productivity Kelley and Harrison (1992) found that unionized firms were as

much as 31 percent more productive than non-union firms

In its report the World Bank (1995) concluded that trade unionrsquos activities

could be conducive to higher efficiency and productivity because they balanced the

power relationship between workers and managers and unions limit employerrsquos

arbitrary exploitative or retaliatory behavior by establishing grievance and arbitration

procedures Unions reduce turnover and promote stability in the workforce conditions

that causes an overall improvement in industrial relations which leads to enhance

workers productivity The view that the unions can enhance productivity and

efficiency also has been supported by recently analyzing Malaysian data

Pencavel (1995) wrote that presence of union and its representation of workersrsquo

demands views and ideas before management can benefit as well as harm the firm It

benefits when productivity and efficiency is increased and causes harms when wages are

raised beyond the firmsrsquo paying level For example in many jobs the worker may be

better informed about the potential for productivity improvements within his department

than his supervisor and he will be more willing to provide that information if he is

confident that any change in organization will benefit him He can communicate his

information to management through his agent that is union The presence of an agent of

the worker may make the worker less suspicious that the information he reveals will

benefit only management There is evidence that participation by workers in a firms

43

decision-making sometimes raises productivity and if the union involves the workers in

efficiency-enhancing activities then unionism is associated with a more productive

organization However according to Pencavel there were also arguments to suggest that

unionism harms productivity particularly when a union protects indolent or careless

workers from disciplinary action or when a union opposes changes especially labor-

saving technological changes and thereby retards an organizations development or a

union may successfully negotiate capital-labor ratios that oblige the firm to use more

workers per machine than relative input prices would call for

Fashoyin (1997) is of the view that in Japan the productivity improvement

movement has had a much greater impact and unions were an important party to the

productivity improvement crusade

According to Tolentino (1997) during the Asian Regional Seminar of ILO on

Trade Unions Industrial Relations and Productivity held in Tokyo in 1982 the

participants adopted the view that the goal of high and increasing productivity in

industry agriculture and services is one to which Asian trade unions no less than

management and government can and ought to subscribe This position was a clear

exemplification of the trade unions long commitment to national development and

indeed of their perception of the leading role which they could and should play in this

process Tolentino opined that the rapidly globalizing economy calls for dramatic

changes in the roles that the trade unions have to play to improve national

competitiveness for the sake of workersrsquo well-being As representatives of workers

they could play a significant and active role in creating the national economic and

business environment that will make their countries competitive in the globalize

marketplace of capital technology products and services The trade unions as

representative organizations of workers have very important roles in the promotion of

productivity At the macro level they could participate in the creation of the policy

and general business environment conducive to productivity improvement and at the

institutional level they could exercise their influence in making productivity related

institutions such as vocational training systems industrial relation bodies etc

effective At company level trade unions can participate in the companys productivity

improvement efforts by helping to create the enterprise policies and structures that will

44

guide and facilitate productivity improvement and helping their members directly to

participate in the productivity improvement programs of the enterprise In Poland in

the last three years more than 600 enterprises have undertaken productivity

improvement programs through the joint efforts of management and trade unions and

achieved growth 2 to 5 times the growth rate of the whole Polish economy

Productivity raised by 78 (in one year) compared to 8 in the total economy The

tremendous increase of profit made bonuses possible Some of the enterprise started to

increase employment The personal income of workers increased by an average of 20

compared to 2 in the whole economy due to the 40 growth in the value added

in these enterprises compared to 6 in the whole economy

According to Human Rights Watch (1998) productivity in Malaysia is actually

higher in enterprises where the workers are organized in industrial unions than in non-

unionized companies

Cassoni et al (2002) also reported that unions promote increases in

productivity and prevent profitability increases

A study of Bernhardt et al (2002) of Wisconsin Regional Training Partnership

an association of 125 employers and unions concluded that among member firms

productivity is way up exceeding productivity growth in nonmember firms

Shafiq-ur-Rehman (2003) wrote that in some Asian countries like Korea and

Japan trade unions adopted a cooperative and assisted management in improving

efficiency

Ash and Seago (2004) examined the relationship of unionized nursing staff and

the mortality rate for acute myocardial infarction (AMI) or heart attack in acute care

hospitals in California and found that hospitals with union nurses have 55 lower

heart-attack mortality than do non-union hospitals

Doucouliagos and Laroche (2003) expressed that the economics literature

found a positive association of unions on productivity The positive association of

unions with productivity is established for the United States in general and for US

45

manufacturing in particular Eisenbrey (2007) denied the common myth that unions

hurt productivity supposedly because they impose work rules that make their

employers less efficient He quoted yearly growth of workers productivity in the form

of bar chart showing productivity increase of 18 18 15 15 14 17 23 and 17

for Belgium France Germany Italy Netherlands Spain Sweden and USA

respectively for years 1979 to 2005 Productivity in USA did not increase even as

consequence of dropping of unionization to 12 during this period while productivity

increased in the seven largest European countries with union density greater than 60

Regarding profitability Freeman and Medoff (1984) are of the view that as

compared to non-union employers unionized employers tend to earn a lower rate of

return on capital because of increase in wages and the greater amount of capital used

per worker These increased costs are not compensated for by the higher productivity

of labor associated with unionism

About profit Hirsch (1997) analyzed that union wage gains lower firm

profitability unless offset by productivity enhancements in the workplace or higher

prices in the product market He concludes from several studies that although there is

diversity in results most studies obtain estimates suggesting that unionized firms have

profits that are 10 percent to 20 percent lower than the profits of nonunion firms

Saavedra and Torero (2002) referred evidence from some studies showing

negative effect of unions on profits and also a negative albeit less robust impact on

labor productivity in Peru

Studies of Addison and Hirsch (1989) and Machin and Stewart (1996) about

North America and Meneses-Filho (1997) for the United Kingdom reveal that unions

have a negative effect on profits and on shareholders wealth About profitability

Addison (nd) expressed that almost all early British studies showed negative effects

of various indicators of presence of union on the financial performance or profitability

46

242 Work Place Harmony and Cooperative Role

Unions are blamed for harsh and quarrelsome attitude non-cooperation and

always demanding for benefits Following studies shed light on it

Katz et al (1993) concluded that despite in some cases unions have defended

the lsquotraditional waysrsquo by fighting against the lsquochangesrsquo but in some other cases unions

cooperated for saving jobs and promoting human-side benefits of more flexible work

organization Unions have also played a proactive reformist role by pushing

management toward new forms of organization such as group work

Wagar (1997) in his paper investigated the relationship between labor-

management climate and perceptions of productivity product or service quality and

customer or client satisfaction using a regional and national sample of Canadian

organizations and a regional sample of local unions Results reveal a strong

relationship between labor-management climate and measures of organizational

performance with a more positive labor-management climate associated with more

favorable scores on the performance variables

About India DeSilva (1997) concluded that the unions and management which

are social partners after decades of conflict have gradually recognized the importance

of bipartite relations which emphasizes on workplace harmony

Preuss (1998) during a study of Management Cooperation and Hospital

Restructuring in USA found that union labor-management committees improve

communication and ease the process of implementing new hospital practices in

response to changing market demands

Song (1999) wrote that South Korean unionrsquos struggled to promote worker

compliance and commitment to firms and brought the employees back from street

rallies into the workplace

ILO (1999) reported that in countries like Denmark Germany Italy and the

Netherlands governments want to associate trade unions with social and economic

policies which are translated into employmentrdquo and social pacts whereas in the UK

47

and New Zealand during last two decades trade unions and governments relations

have deteriorated and the position of the trade unions weakened by a hostile political

environment ILO report quoted instances of union and state cooperation In Italy

because of state and unions mutual affinity a tripartite pact to promote employment

with special attention to the less developed areas and agreement including significant

elements on educational reform training and the reduction of working time was signed

in September 1996 In Spain trade unions are cooperating with government policies in

regarding job creation and regional development In Greece the General Confederation

of Workers has associated with the State and with employers organizations in

committeersquos formation on the specific problems of long-term unemployment

Similarly in Germany a similar national pact was proposed in Germany but not finally

agreed

ILO report also revealed that trade unions in Singapore cooperated with the

State and the employers in efforts to maintain full employment unions cooperated

with other social partners in attempt to set wages at levels which maximize

employment Unions are members of tripartite committees including National Wage

Council and in the past have accepted temporary wage cuts in order to save

employment About unions cooperation with employer or management ILO reported

that because of trend towards decentralization importance is given to Works Councils

and new institutions like this one example is of Italy where the trade union

movement in agreement with the State and employers associations has created a new

institution in the workplace and all workers can elect representatives from within or

outside the union Majority of seats (in this have been) won by the unions The

employers are reportedly satisfied with the new institutional structure for workers

representation The other example is of South Africa where workplace forums were

created in 1996 in order to establish joint decision-making and consultation between

management and workers at shop floor level

Virmani and Rao (1999) expressed that responsible trade unions in Singapore

are one of attractions of doing business in Singapore because with industrialization

process trade unions have developed disciplinary spirit therein and became conscious

to develop the country economically

48

Wong (2000) also wrote about unions in Singapore that the unionsrsquo approach

to industrial relations moved from conflicting to cooperative after independence of

Singapore And during recent economic crisis the importance of constructive tripartite

relations and the positive role of the labor movement has been highlighted when many

union leaders had been involved in working out mutually acceptable measures to

overcome the recession in 1986 and they reached on a consensus when Government

union leaders and employers were able to gain worker support for wage cuts

Hirsch and Schumacher (2000) referred the analysis of Freeman and Medoff

1984 concluding that Unions have had success in pushing for workplace mandates

applicable to both the union and nonunion workforce as there is strong public demand

for many forms of protection in the workplacerdquo

Hence Aidt and Tzannatos (2001) wrote that unions facilitate worker-

participation and worker-manager cooperation in the workplace This can have

efficiency-enhancing effects that jointly benefit workers and management

Yates (2001) expressed promising views about role of unions in faster growth

of New Economy that unions can overcome certain inefficiencies inherent in the

marketplace and at the same time helping individual workers to fulfill their goals more

easily and at less personal cost However Yates stressed on transformation of unions

which can begin to provide an array of personal services to members and help to

negotiate and to finance contract provisions that provide skill training for workers

Presently when new employers are promoting multi-skilling for workers unions can

help the employers to attain greater flexibility by agreeing to eliminate job

descriptions and allow employers to assign workers to a variety of jobs Unions can

also support employers in their efforts to achieve greater time flexibility through the

implementation of longer work shifts and more elastic shift scheduling and they can

agree to allow the employer to schedule mandatory overtime albeit at premium pay

Unions encouraged higher wages and protected economy in USA About the

union role in economic depression of 1930s Lichtenstein (2002) quoted from his book

State of the Union A Century of American ldquoin the 1930s as political leaders saw the

value of unions Unions offered the opportunity to protect and encourage higher

49

wages resulting in increased consumption and a stronger economy Where the

Depression was seen as the failure of American capitalism labor unions offered a

countervailing force both economic and political Industrial democracy re-enforced

political democracy and so unions were seen especially by the Roosevelt

Administration as important pillars of the American identityrdquo

Labor unions are also extending cooperation in Sustainable Development

According to Conference on Sustainable Development (2001) trade unions want to

cooperate with local and national governments international agencies and other Major

Groups to bring about patterns of decision-making that are consistent with the goals

of sustainable development (CSD 2001)

About Europe Knox (2004) wrote that strikes are rare in Germany and in Volks

Wagens 67-year history there has never been a strike only warning demonstrations to

pressure management Therefore in Germany working days lost to strikes run about

five per 1000 employees a year vs about 43 days in the United States But there have

been several strikes in Germany and elsewhere in Europe in recent months as workers

protest company demands for longer workweeks for the same or less pay The

demonstrations however have been short-lived and the unions usually have backed

down against the threat of layoffs or job relocations Therefore in recent contracts

unions cooperated and gave several concessions to employers such as at Karstadt

Quelle a big retailer in Germany trade unions agreed to a three-year wage freeze in

exchange for a promise the company would cut 5500 jobs through attrition not firing

Similarly in France workers at a Robert Bosch car parts factory voted to work an

extra hour a week without pay to stop the car components company from moving the

work to the Czech Republic

50

25 STRATEGIES AND TACTICS OF UNIONS

For the achievement of objectives of securing benefits for the workers and

solution of their problems unions adopt peaceful and violent means and succeed when

they have strength or fail in their struggle if they have no strength Numerous

researches have highlighted it

Jose (2000) is of the opinion that the unionrsquos capacity to influence depends on

their strength and support among the unionized and non-unionized sections of society

Bryson (2001) opined that the employer and employeesrsquo perception of

legitimacy of union in representing workers interest is influenced by higher union

density and where unions represent most of the workforce they can represent workers

interest with a strong voice

Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos

view large and centralized unions are more functional and influential than fragmented

unions

251 Source of Strength of Unions

Thomas (1999) is of the view that trade union organizations largely derive

their characteristics heritage identity and future strategic options from the parameters

that are set by the country in which they function Jose (2000) expressed that union

success depends on its capacity to incorporate workers rights and interests into

legislation or other regulatory instruments of the labor market For building

institutional capacity the following objectives have been prominent on the agenda of

unions (i) legislative provisions guaranteeing job security unemployment insurance

and special benefits on termination of employment and social security providing for

health care and pension schemes (ii) multi-employer agreements on employment

wages working conditions hours of work and non-wage benefits of workers (iii)

ability to influence economic and social policies through consultation and dialogue

with employers and public authorities

51

2511 Unionsrsquo density and their strength to effect

Jose (2000) wrote that labor legislation collective agreements social security

and minimum wages already in place are clear indicators of the strength and influence

of trade unions They reflected a capacity to influence public opinion and mobilize

action in support of the demands of their constituents In developing countries notably

in Asia unions have had significant achievements in maintaining or upgrading

statutory safeguards on employment and working conditions Nonetheless such gains

are mostly restricted to workers in the formal sector

But to cast influence the unions should be stronger and unions can be stronger

if they have a minimum density called threshold density

Aidt and Tzannatos (2001) are of the view that Industries with high overall

union density tend to have a higher wage markup Mishel and Walters (2003) found

that 30 to 40 is the minimum level of unionsrsquo density to produce any threat effect

Therefore the unionization of 20 in a particular industry may have no impact but

40 unionization may be sufficient to make employers aware of union organizing and

union pay and practices Unionrsquos presence of 60 to 70 may provide as strong a

threat or ability to set standards as unionization of 80 or more Therefore unions

can put a greater effect when density is higher

252 Peaceful Means of Achieving Objectives

Unions adopt peaceful means like negotiation reconciliation arbitration and

suits in the courts as well as violent means like tension strikes and processions for

achieving objectives of securing benefits for workers

In Japan trade unions have achieved improvement through collective

bargaining on pay working hours fringe benefits and in house welfare programs

Unionsrsquo efforts have become more important in recent years (Inoue 1999)

Among the peaceful means of obtaining objectives is Collective Bargaining

Jose (2000) reported that the value of collective action initiated by unions for attaining

common objectives is now widely recognized by a broad spectrum of interest groups

52

But unions have moved from collective bargaining to voice in continental Europe and

Japan due to high density of unionism There is growth of trade unions from the

collective bargaining function towards a role dominated by voice and representation of

workers The broad membership base which unions commanded and the equitable

distribution which they promoted in major sectors and enterprises strengthened the

position of unions giving them more power to bargain or collaborate and to derive

successful outcomes

253 Violent Means

When the peaceful means are not successful in achieving the objectives then

unions go on strikes Unions have resorted to this option according to following

researches

Colman (2000) wrote about USA that in 1824 women and men in a textile

factory in Pawtucket Rhode Island led the countryrsquos first strike demanding the owner

to reverse his decision to increase work day by one hour and cut their wages After

four years women went on strike in Dover New Hampshire demanding the

elimination of ban on talking at work and fine to employees 125 cents for being one

minute late In 1831 1600 women tailors in union of tailorsrsquo society in New York

struck for higher wages In 1834 in Lowell Massachusetts over 800 looms and

spindle operating women in the textile mill called a strike to protest wage cut

In Israel Before 1995 the famous labor union Histadrut seldom resorted to

general strikes in the public sector but since July 1997 The New Histadrut has

called three extensive strikes In July 1997 strikes were of government owned

corporations in December 1997 and in September 1998 the entire public sector went

on strikes During the strike in September 1998 the threatened closure of Ben-Gurion

International Airport contributed to reaching an agreement (Nathanson and Associates

1999)

CLR reported that in June of 2000 workers at the Duro (a gift bags

manufacturing firm) plant in Rio Bravo (Mexico) went on strike to establish an

independent union and forced the reinstatement of their elected leaders who were

53

illegally fired as a result of strikes Mexican government officials in August 2000

granted official registration as first independent union to the Duro workers (Carty

2003)

Unions weakened due to effects of Multi National Companies and

Globalization According to UNDP (2000) report conventional weapons of strikes

boycotts and demonstrations became useless because of emergence of MNCs and

Globalization unionrsquos power has weakened In the past labor groups could combat

with economic power of employer by seeking redress at the national level appealing

to sympathetic politicians and government officials to enact protective labor

legislation or alternatively labor unions could resort to offensive strategies like

strikes boycotts and demonstrations Unions could rely on this power because capital

in the past was immobile but in present era if these techniques are exercised capital

will move across the borders therefore the labor unionrsquos conventional weapons

strikes boycotts and demonstrations have became ineffective and unions have been

rendered weak

26 CORRUPTION OF UNIONS

Though unions exerted efforts for securing benefits gaining respect and

building a fearless atmosphere for their workers but unionsrsquo history is also plagued by

corruption which has been brought to light by following researches

261 Corruption and Selfishness of Officials

Ware (1935) wrote that labor leaders in USA are trade unions officials and

they have been accused of the complete unconcern for any worker but the members of

their own craft union interest in holding their own job a close association and

cooperation with employers in dealing with industrial problems and racketeering

For unions in Pakistan Khan (1992) expressed that the numerical increase of

trade unions leads to personal rivalry of union leaders competing for command over

small unions The trade unions leaders fight among themselves instead of fighting

54

against management or government and every leader is status seeker caring more for

his own prestige and image than to cause of common worker or unionism

Pencavel (1995) opines about union pluralism that a policy permitting the

formation of more than one union per enterprise will lead to disputes and rivalry

among unions He quoted the example of the situation in the Indian sub-continent

where the strength of unions is sapped through disputes among themselves rather than

in bargaining with employers

Bezuidenhout (2002) narrated that in South Africa Industrial and Commercial

Workersrsquo Union (ICU) was also plagued by internal corruption and bureaucratization

According to a report of Weinstein (1996) in USA during two decades LIUNA

(Laborers International Union of North America) officials have recorded over 80

convictions for crimes ranging from racketeering to bribery extortion tax evasion

and even of attempted murder

Horowitz (1999) reported about USA that unionrsquos corruption is not a new

phenomenon but as government reports documented even in the 1920s among

construction trade unions in New York City a widespread corruption and racketeering

was also prevailing

262 Financial Corruption

Weinstein (1996) wrote the instances of unions financial corruption eg the

House Judiciary Committees Subcommittee on Crime (in USA) held hearings that

union official lent $100000 of LIUNA money to the Clinton Inaugural Committee

and in 1993 and 1994 the Laborers Political League (LPL) donated over $1 million to

Democratic Party congressional candidates During 1995 and the first quarter of 1996

the LPL has contributed $747000 to over 200 liberal congressional candidates

Weinstein and Wieglus (1996) expressed that unions keep the workers ignorant

from their rights for example Labor Secretary Robert Reich who frequently proclaims

the Clinton Administrations concern for workers rights told the AFL-CIO recently

that collective bargaining is not a privilege it is a right Yet the Administration has

55

cooperated with union officials to keep workers in the dark on their Beck rights They

further quoted example of AFL-CIO for the misuse of unionrsquos funds for political

campaigns as AFL-CIO has launched $35 million voter education project funded

mainly with mandatory union dues to defeat conservative members of the 104th

Congress

Horowitz (1999) brought in to light that the Federal Election Commission in

(USA) reported that soft donations by labor unions to national political parties

during the 1997-98 election cycle totaled some $8 million nearly all of it to the

Democratic Party

In the research report conducted in USA Sherk (2006) expressed that it is true

that union members elect their leaders but union leaders appear to pursue an agenda

disconnected from the concerns of their members Some unions are heavily involved

in political activism they spend their membersrsquo mandatory dues to elect candidates

favored by the union leadership which means union leaders pursue an agenda that

their members do not support Therefore several states have passed ldquopaycheck

protectionrdquo laws that require unions to obtain written permission from their members

before they can spend membership dues on political causes He further wrote that

unions received from their members annual dues averaging $125 per member in 2004

and used only a portion of that money to represent their members Americarsquos 10

largest unions used an average of only 30 percent of their dues to represent their

members and negotiate with employers and spent the other 70 percent on lobbying

political activities gifts grants overhead and compensation for their staff These

other activities might or might not reflect the priorities of the unionrsquos membership

Unions generously spend their membersrsquo mandatory dues on politics He quoted that

in 2005 a non-election year the AFSCME (American Federation of State and County

Municipal Employees) spent almost 20 percent of its budget on political activities and

lobbying The AFL-CIO spent 30 percent of its budget on the same causes In the 2004

elections both these unions gave over 97 percent of their donations to Democratic

candidates Despite of misusing members contributed funds union leaders do little to

inform their members of many of their activities and it is doubtful whether union

56

members would approve of many of the decisions of their leaders Misplaced union

priorities extend beyond six-figure salaries and comfortable retreats for union bosses

2621 Embezzlement examples

Horowitz (1999) quoted many examples of unionrsquos office bearers

embezzlement in his report such as Bernard Rubin president of South Floridarsquos

Laborerrsquos District Council was convicted in 1975 on embezzlement racketeering and

tax evasion He misappropriated more than $350000 in union funds Similarly in

April 1998 a federal court convicted Eileen Cibellis former longtime office manager

and fund administrator for the Bloomfield New Jersey-based District Council 10 of

the International Brotherhood of Painters and Allied Trades for embezzling more than

$400000 from union funds There are other examples such as Carol Sue Fisher a

former bookkeeper for the local Paintersrsquo union in Evansville Indiana in 1992

pleaded guilty to embezzling some $135000 from the union fund John Ducey the

former financial secretary and business manager of the Carpet Linoleum and Resilient

Tile Layers union received a prison sentence for embezzling more than $51000 A

federal jury of embezzling union funds found George Osley Jr secretary-treasurer of

Laborers Local 872 in Las Vegas guilty of embezzlement of unionsrsquo funds The

National Maritime Union (NMU) a representative of some 2000 unlicensed seafarers

working on US flag commercial ships deserves special mention as over the years it

has served as a private bank for its leaders In January 1997 NMU President Louis

Parise Sr had to resign and sever all connections to the union following his

conviction in federal court on racketeering and embezzlement to the tune of more than

$700000 Robert Hickerson former business manager of Local 919 in Quincy

Illinois in 1982 was sentenced to three years in prison for embezzling union funds

and hiring vandals to smash more than $250000 worth of equipment owned by non-

union contractors In Lancaster NH Paul Wilson former treasurer of United Paper

workers Local 61 in 1993 was sentenced for theft of more than $67000 in union

funds This year Robert Kellas a former official of an amalgamated Transit Union

local in Bellingham Washington pleaded guilty to embezzlement of up to $120000

from the union over a four-year period These were few examples otherwise report has

numerous other events worthy to be mentioned but they would render the thesis very

57

lengthy Horowitz in his report wrote for different types of unionrsquos corruption in USA

and quotes numerous events eg ldquoIn New York City in 1995 federal investigators

discovered that around $8 million had vanished from the pension fund of Teamsters

Local 875 Local 875 had a long history of corruption in the previous 25 years five of

its officers and financial advisers were convicted of embezzlement or accepting

payoffs to keep labor peacerdquo He further wrote ldquoFor good measure the AFL-CIO in

1957 expelled the Teamsters for corrupt practices in the light of widely-publicized

hearings before Government Operations Committee headed by John McClellan

Arkansas Democrat in the Senate

Sherk (2006) in his report about American unions also quoted examples of

suspected incomes of unionsrsquo leaders such as Gerald McEntee president of the

American Federation of State and County Municipal Employees earns $580000 a

year from the dues paid by his unionrsquos far less compensated members The president

of the National Education Association earns $439000 a year which is almost ten

times what the average teacher earns It means union elected leaders earn salaries

several times larger than those paid to members of Congress Unions also spent over

$7 million in 2005 to hold conferences and workshops at resorts including the

Pheasant Run Resort amp Spa near Chicago and the Palm Springs Riviera Resort in

California a use of funds which also may not reflect their membersrsquo priorities Sherk

further quoted that unions pay for political campaigns from members contributions

and Supreme court in a suit ldquocommunication workers versus Beck (1988)rdquo established

a precedent that workers can not be forced to donate to political causes and are

entitled to demand the refund of the portion of their dues spent for political cause but

unions erected roadblocks in front of the workers who wanted to exercise their Beck

right

263 Unionsrsquo Officers Monopoly

Union officials enjoy what amounts to a monopoly and these union

monopolies shielded from competition provide them lax from accountability toward

the people they serve and individual worker or a group of workers demanding

accountability from their union may be risking their jobs or safety Union funds to pay

58

nonexistent employees is a common way of rewarding friends at the expense of

dues-paying rank and file Horowitz (1999)

Brohawn (nd) is of the view that in some cases it can be fairly said that

unions have empowered their leaders not their members

Ghayur (1996-b) wrote that in Pakistan the labor leaders are feudal minded and

they never bothered to make their action accountable to the members

264 Bribes (Extortion and Pay-off)

Horowitz (1999) Revealed in his report with example that the Construction

trade unions are notorious for extortion from contractors by threatening labor

problems such as work slowdowns disruption sabotage or assault In the 1980s a

civil suit against Local 6A of the Cement and Concrete Workers of the Laborers

International Union of North America (LIUNA) alleged that the local its district

council their officers and certain organized crime figures extorted one percent of the

contract price from ready mix contractors by threatening labor problems For a while

that bought labor peace FBI investigation of building trades practices in Long Island

led to the indictment of the president of the District Council of Carpenters and five

other union officials connected to organized crime families for extorting more than

$100000 from a drywall contractor In Philadelphia Joseph Fiorelli founder and

former boss of Local 1955 of the Drywall Finishers Union was sentenced to more than

10 years in prison on extortion payoffs from contractors theft of union funds and

racketeering charges Fiorelli had extorted payments from 25 contractors from 1967 to

1991 Contractors testified that in exchange for their payments Fiorelli gave them

labor peace and allowed them to sometimes use nonunion workers and to delay or

avoid payments to the unions health and welfare fund

About Bribery for securing jobs Horowitz expressed that unions protect their

members from competition by non-union members But when a contractor or

employer decides to hire non-union labor the unscrupulous unions make life

uncomfortable for contractors until they hire union labor or allow the contractor to

hire nonunion labor--if the price is right In 1981 Louis Sanzo president of Local 29

59

of the Blasters Drill Runners and Mines Union in Queens NY affiliated with

LIUNA and the others took a combined $400000 in payoffs from construction firms

to buy labor peace The owner of a Florida-based construction firm said he tried to get

out of the deal but Sanzorsquos men threatened to kill him his wife and three children

The contractor would say in his bid that he needed 30 men and he would be paid for

30 men by the people who hired him to do the job But then Local 29 would send over

only 15 men They could keep the rest of the money

265 Sound Labour Relations at the Workplace no Important Concern of Employers and Unions

Unions some times do not take interest for sound labor relations - especially at

the workplace De Silva (1997) wrote that in many South East Asian countries and

republic of Korea sound labor relations have not been an important concern of

employers and unions

Bacon (2005) expressed that in USA George Meany and Lane Kirkland AFL-

CIO leaders treated unions as a business representing members in exchange for dues

while ignoring the needs of workers as a whole

CHAPTER 3

HISTORY AND LEGAL FRAME WORK OF UNIONIZATION IN PAKISTAN

According to Khan (1992) the Industrial Relations is an art It is an art of living

together for purpose of production Industrial Relations System is a sub system of the

society and studies the web of rules and regulations that binds the workers and

managers in a working group In industrial relations three actors play their part

employer through management workers through unions and consumer through state

However this system varies from country to country or region to region

ILO (1999) categorized the countries according to the degree of influence

exerted by trade unions on government policies In some countries unions have a

decisive voice and they can influence social pacts as well as the human rights agenda

through trade policies In other countries governments can ignore the unions without

incurring major problems so in these cases unions have little influence on social

policy or human rights concerns Therefore two different patterns of unionsrsquo role

emerge reflecting regional differences In developing countries trade unions are

searching for a new identity while in the industrialized countries they are trying to

gain lost ground through membership campaigns

Thomas (1999) asserted that trade union organizations largely derive their

characteristics heritage identity and future strategic options from the parameters that

are set by the country in which they function

Similarly Wong (2000) wrote that the industrial relations system in each

country is rooted in different historical political socio-economic cultural and

environmental contexts and it makes it difficult to replicate one system in another

context So this research is focused on the study of the role of Pakistani Labor Unions

working in quite different political cultural and legal environment

61

Khan (1992) expressed that every industrial relations system must fulfill

function of defining the rights responsibilities and objectives of the government

employers and employees and establishing power structure among them controlling

and channeling the responses of managers and workers that arise due to

maladjustment frustration dislocation and insecurities inherent in industrial process

and establishing a net-work of rules These rules include things like recruitment

commitment level of compensation the wage structure and procedure for settlement

of disputes

In Pakistan the system of industrial relations is legalistic and government is a

regulator and has framed out laws for industrial relations and unions are formed and

function in the same framework of laws These laws are of two types First type of law

concerns with union making and that is IRO 2002 and second type is of laws granting

rights to which unions have to get implemented and exact the rights granted therein

for workers Besides this unions have to struggle for the rights which are not given yet

in law and also have to get the laws promulgated for grant of these rights The history

of emergence and evolution of legal framework in Pakistan is given below

31 HISTORY OF LEGISLATION

According to Shafiq-ur-Rehman (2003) the history of Labor Legislation dates

back to 1875 when the government of Bombay appointed a Factory Commission on

whose recommendations the Factories Act 1884 was promulgated Committee of

Inquiry was appointed in 1906 and Factory labor commission in 1907 and upon their

recommendations Indian Factories Act 1922 was passed and subsequently Trade

Union Act 1926 and Trade Dispute Act 1929 were also passed

The laws governing the formation of unions in Pakistan have passed through a

process of evolution during last eighty years Their chronological evolutionary steps

are reported below

62

311 Laws Permitting Establishment of Unions

In 1914 in Indo-Pak subcontinent there were more than a million workers

employed in 2936 factories besides a large number of workers employed in railways

mines plantation and government departments who were originally peasants pushed

towards factories by poverty After World War - I (1914-1918) the economic

conditions of these workers went worse as wages could not keep pace with rise in

prices There was acute distress and discontent among the workers but the industries

developed over the period were experiencing prosperity This led them to form unions

to demand increase in wages

In 1919 ILO was established and that gave recognition as well as big support

to trade union movements Consequently a substantial number of unions were formed

in subcontinent of Indo-Pak (from which Pakistan parted in 1947) in 1920s but many

of them were temporary like strike committees being formed at the outbreak of

strikes and disappeared with its end The Indo-Pak Legislative Assembly passed a

resolution in 1921 in favor of registration and protection of trade unions As a result of

this resolution the legislature passed the Trade Union Act 1926 This act recognized

the workers rights to organize and form trade unions and laid down that any seven

persons or more forming trade unions could seek their registration of trade union and

this registered trade union was not to be considered a body unlawful in restraint of

trade However this law laid down penal clauses for violating any of the restrictions

imposed or for providing false information to the Registrar of Trade Unions After

independence in 1947 the government of Pakistan adopted the Trade Union Act 1926

and it remained in enforcement as major piece of legislation up to 1960 No doubt this

law has provided protection to the workers to combine for improving their

employment conditions and from being considered anti-state activity But the law has

a serious draw back that it was not providing unions the recognition of bargaining and

protection to workers from employersrsquo discrimination for union activity In 1960

Trade Union (Amendment) Ordinance 1960 was passed to amend and improve the

previous Act According to new law the recognition of trade union on employer was

obligatory and registered union was granted the right to negotiate with the employers

in matters concerning employment un-employment the terms of employment and the

63

conditions of work of all or any of its members The employer was bound to receive

and reply to letters from and to grant interviews to executives of union in connection

with any such matter The employer could with draw his recognition but with the

permission of labor court The previous maximum 50 percent limit of number of office

bearers from outsider was reduced to 25 percent in this law The trade unions were

required to maintain subscription register account books and membership list In this

law clauses for ldquounfair labor practicesrdquo both on the part of unions and employers and

the penalties in cases of breach of these clauses were also added Another ordinance

under name of Trade Unions (Amendment) Ordinance 1961 was passed to make

amendment to debar outsiders from becoming officer of union unless they were full

time paid employees of that trade union After the promulgation of Constitution of

1962 all the labor matters including legislation were transferred to provinces (East

Pakistan and West Pakistan) So a further ordinance ldquoWest Pakistan Trade Unions

Ordinance 1968rdquo was passed that made amendment to enhance powers of ldquoRegistrar

Trade Unionsrdquo empowering him to interfere with the conduct of unions even after its

registration to order an inquiry in the matters of unions if he thought that the funds of

a union were likely to be misappropriated The registrar could ask the union to curtail

the number of office bearers if it seemed disproportionate to the total number of its

membership Without the permission of the Registrar the employer was not to

discharge or dismiss or otherwise victimize an office bearer of trade union during the

pendency of its application for its registration The registration certificate could be

cancelled if the union participated in an illegal strike or go-slow A federation with

membership of at least seven registered unions could seek registration The registered

federation could have 50 percent of its office bearers from among the workers who

were not engaged industry or industries with which federation was concerned This

ordinance restricted the eligibility only to those unions which had minimum

membership of workers 10 percent of the total workmen employed or 100 whichever

is less The age to be office bearer of union was 21 years for employees and 25 years

for outsider Khan (1992)

64

312 Laws for Settlement of Disputes

Before IRO 1969 there were different sets of laws permitting union making

and for settlement of disputes The foremost law pertaining to settlement of

employers employee dispute was Employers and Workers (dispute) Act 1860 This

act provided for the determination of disputes relating to wages of workers employed

in the construction of railways canals and public works and breach of contract by

workmen was a criminal offence The cases of dispute were handled by magistrates

Later on Trade Dispute Act 1929 was enacted which provided for ad-hoc machinery

enabling the government to establish the Court of Inquiry and Conciliation boards

Industrial Dispute Act 1947 was enacted to provide hierarchy of institutions for

bringing out harmonious collective relations between the employers and the workmen

through work committees Conciliators board of conciliation Court of inquiry failing

which the settlement was arrived at by adjudication by a reference to an Ad-hoc

Tribunal The industrial establishments were classified in two categories Public

Utility Services and Non Public Utility Services Public Utility Services included any

Railway Service and section of an industrial establishment on the working of which

safety of establishment or workmen depended any postal telegraph and telephone

service any industry which supplied power water and light to public any system of

public conservancy or sanitation any undertaking establishment or installation

relating to defense services any service incidental to the operations of ports and any

such industries as transport coal cotton textile food stuff iron and steel as declared

by the government to be public utility service for a period of six months at a time

Industrial Dispute Ordinance 1959 changed industrial relations by further enlarging

the scope of term public utility services by including all types of industry later on

West Pakistan Industrial Dispute Ordinance 1968 was passed wherein provincial

government assumed the power to prohibit strike or lockout existing or apprehended

in public interest or for the maintenance of essential services or supplies (Khan 1992)

313 Industrial Relations Ordinance 1969

The Industrial Disputes Act (IDA) of 1947 was passed in April 1947 It made

no provision for procedures to determine the representative union what would

65

normally be a single bargaining unit Employers were under no legal obligation to

bargain with unions so there were no built-in incentives for either party to engage in

collective bargaining Therefore this right has been given in IRO 1969 The Industrial

Disputes Act 1947 also made it very difficult for the unions to call a legal strike

There were also problems in the Indian Trade Union Act of 1926 The Act allowed

any seven workers to register their trade union but made no provision for union

recognition (eg through a secret ballot procedure)

To remove the shortcomings of the labor legislation and address the workers

unrest because of political disturbance of ending years of regime of president Ayub

Khan and to create industrial harmony and peace government promulgated Industrial

Relations Ordinance (IRO) 1969 The objective of the IRO 1969 was to facilitate the

formation of trade unions and to provide simple procedure for their registration It was

primarily meant for regulating the employer employee relations and to determine

collective bargaining agent to arrange for the adjustment of conflicting interests by

collective bargaining to provide machinery (institutions) for just and equitable

settlement of disputes by conciliation voluntary arbitration and adjudication between

workers and employers with a right of representation by a registered trade union or

federation of trade unions or association of employees to prevent strikes and lockouts

and to provide relief of workmen in matters of employment relations

It was a comprehensive law and it consolidated the laws relating to

registrations of unions and laws relating to settlement of disputes Before this both

were dealt with different laws At different times establishments of unions were dealt

under Trade Unions Act 1926 Trade Union (Amendment) Ordinance 1960 Trade

Unions (Amendment) Ordinance 1961 and West Pakistan Trade Unions Ordinance

1968 where as trade disputes had been dealt under Employers and Workers (dispute)

Act 1860 Trade Dispute Act 1929 Industrial Dispute Act 1947and Industrial

Dispute Ordinance 1959

According to this law the formation of trade unions was expressly recognized

and there was provision for their registration A certified and duly elected registered

trade unions in industrial undertaking or an establishment could be taken as collective

66

bargaining agent and only collective bargaining agent could raise a dispute and take

bilateral negotiations within ten days of issue of charter of demand This law in

conjunctions with West Pakistan Industrial and Commercial (Standing Orders)

Ordinance1968 made it legally difficult and expensive to fire any worker and

developed a comprehensive measures relating to the terms and conditions of

employment and work procedure of handling grievances enforcement of discipline

and to regulate on the job relations within the establishment The IRO 1969 however

excluded the persons employed in Police Defence Services of Pakistan in the

Services and installation of Armed Forces and public services This Ordinance was

amended in 1971 to remove certain administrative difficulties amended twice in 1972

to insert provision of junior labor courts Amended in 1973 to allow 20 percent

workers participation in management and system of shop stewards was introduced

and a standing National Industrial Relation Commission (NIRC) was appointed Law

was amended in 1975 and a wage commission was created to determine the economic

disputes in banking industry and other financial institutions Again amended in 976 to

incorporate the principle ldquoone worker one unionrdquo to check the multiplicity of unions

to delete the provision of junior labor courts and to raise the strength of workers

representatives in Management Participation Committee to 50 percent Here the

power was taken to highest echelon through Joint Management Board To make the

works council to be a forum of joint negotiation law was amended in 1977 Final

amendment was made in 1979 This law has been repealed vide section 80 of IRO

2002

32 RIGHT OF UNIONIZATION

Right of unionization has been derived in Pakistan from UNO declarations

ILO conventions ratified by government of Pakistan and Constitution of the State

321 United Nationsrsquo Declaration of Human Rights

Articles 23 and 24 of the UNOrsquos Declaration are for workers favor besides

permitting the formation of labor unions (Wikipedia-b)

67

Article 23

1 Everyone has the right to work to free choice of employment to just and

favorable conditions of work and to protection against unemployment

2 Everyone without any discrimination has the right to equal pay for equal

work

3 Everyone who works has the right to just and favorable remuneration ensuring

for himself and his family an existence worthy of human dignity and

supplemented if necessary by other means of social protection

4 Everyone has the right to form and to join trade unions for the protection of his

interests

Article 24

1 Everyone has the right to rest and leisure including reasonable limitation of

working hours and periodic holidays with pay

322 ILO Conventions

To enable us to identify the basic union rights it is necessary to have a glimpse

of the International Labor Organization Conventions No 87 and 98

According to Convention No 87 workers and employers shall have full

freedom to organize themselves The organizations shall draw up their own

constitution and rules elect their leaders in full freedom and organize their

administration and activities without any interference by the government The

organizations shall not be dissolved or suspended by the administrative authority

which is the government

Government should impose no condition on the organizationsrsquo right to

establish or join a federation or confederation and to affiliate with international

68

organizations Granting of legal personality shall not involve restrictions on the above

rights Pakistan has ratified it on 14th February 1951

Under Convention No 98 it is the responsibility of the government to protect

workers against anti-union discrimination and victimization by employers and against

domination of workers organizations by any acts including financial contributions

The government should also establish machinery for the purpose of ensuring respect

for the right to organize Pakistan has ratified it on 26th May 1952 These rights

adopted by the ILO are more or less based on the lsquoUniversal Declaration of Human

Rightsrsquo Workers especially need these guarantees to protect themselves against

exploitation by employers who wield financial power and political influence

323 Constitution of Pakistan

The article16 and 17 of constitution of Pakistan have given a general right to

organize and form association to the workers

Article 16 is about freedom of assembly and says ldquoEvery citizen shall have the

right to assemble peacefully and without arms subject to any reasonable restriction

imposed by law in the interest of public orderrdquo

Article 17 is about freedom of association and says ldquoEvery citizen shall have

the right to form association or union subject to any reasonable restriction imposed by

in the interest of sovereignty or integrity of Pakistan public order or moralityrdquo

33 PRESENT ENFORCED LAWS

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo

Presently trade unions are formed and function according to IRO 2002 This

ordinance was promulgated in 2002 to amend consolidate and rationalize the law

relating to formation of trade unions regulation and improvement of relations between

employers and workmen and avoidance and settlement of any difference or disputes

arising between them A summery of main provisions of this ordinance regarding the

right of unionization and protections given to unions their functioning functioning

areas and limitations in IRO 2002 is given here

69

1 It allows the formation and joining of trade unions to workers and formation of

association to employers (section 3) and allows these unions and associations

to join respective federations allows federations to join confederations and

these federations and confederations can affiliate with international

confederations (section 18) However this law restricts a worker to be a

member of more than one trade union at any one time Law also binds that

every collective bargaining agent union shall have to affiliate with any

federation at the national level registered with the National Industrial Relations

Commission within two months after its determination as collective bargaining

agent or promulgation of this Ordinance whichever is earlier

2 It specifies the registration process (section 4) requirements for registration

(section 5 and 6) cancellation of registration (section 12) and appeal against

cancellation (section 13)

3 It provides safety to office bearers of trade union from victimization in the

form of transfer discharge or dismissal for applying for registration (section

10) and fine up to 20000 rupees for violation (section 65)

4 It provides the facility of Collective Bargaining Agent to a single union if it

has members not less than one-third of the total number of workmen if there

are more than one unions then who wins the referendum (section 20) and

identifies the bargaining and non bargaining issues

In Pakistan Collective Bargaining has its own Perspective Shafiq-ur-Rehman

(2003) expressed that collective bargaining in Pakistan instead of the issue of

wage rise typically covers a much wider range of issues including pecuniary

terms of employment (such as non statutory allowances and benefits) and non

pecuniary conditions of employment including job security and working

conditions (such as safety of work place and methods of production)

5 To meet the expenses this law allows the unions to collect the subscription by

check-off (section 21)

70

6 It contains provisions about workersrsquo participation in the management of

establishment For this it permits the establishment of Joint Works Council

According to section 24 every establishment which employs fifty persons or

more shall set up a Joint Works Council consisting of not more than ten

members in which workers participation shall be to the extent of forty per cent

and the Convener of the Council shall be from the management and the

employers representatives shall be from amongst the Directors or their

nominees and the workers representatives shall be the office bearers of

collective bargaining agent The Joint Works Council shall deal the matters

like (i) improvement in production productivity and efficiency (ii) provision

of minimum facilities for the workers employed through contractors as are not

covered by the laws relating to welfare of workers (iii) promoting settlement

of differences through bilateral negotiations (iv) promoting conditions of

safety and health for the workers (v) encouraging vocational training within

the establishment (vi) taking measures for facilitating good and harmonious

working conditions in the establishment (vii) provision of educational

facilities for children of workmen

7 It defines industrial disputes and provides for negotiation between employer

and workers to reach settlement (section 25) conciliation in case negotiation

fails (section 26 to 29) Arbitration in case conciliation also fails (section 30)

and finally a court award binding on all parties (section 33) It also provides

facility of appeal in high court against labor courts awards (section 48)

8 It gives right of strike to workers and lock out to employers to press for their

just demands (section 31) and authorizes government to prohibit strikes in any

public utility service establishment (section 32)

9 It contains provisions about labor courts (section 44) their functions powers

procedure and awards (section 45 46 and 47)

10 It also provides provision about National Industrial Relations Commission and

its functions and powers for registration of industry wide unions and settlement

71

of their disputes (section 49 to 53) and dealing with unfair labor practices

(section 63 and 64)

11 It identifies unfair labor practices on the part of employers (section 63) and

unfair labor practices on the part of workmen (section 64) and penalties for

unfair labor practices (section 65)

It defines rights and duties of employers and rights and duties of workers

(Schedule II) as

Employers Rights

(a) Right to conduct business-The employer shall have the right to manage

control and use the property of his enterprise and conduct his business in any manner

considered appropriate by him

(b) Right to manage-The employer shall have the right to use available resources

including human resources efficiently and effectively in the best interest of the

enterprise

Employers Duties

(a) While exercising the right to conduct business and the right to manage the

enterprise the employer shall act in accordance with the law and shall comply

with the law faithfully

(b) The employer shall protect rights of the workers as guaranteed under the law or

secured to them by any award agreement or settlement in force

(c) The employer shall protect and safeguard the interest of his workers and take

measures within his resources for their socio-economic uplift and welfare He

shall create an environment congenial for enhanced productivity of labour and

maximum output of the enterprise

(d) The employer shall respect the right of the workers to employment wages

decent living and better quality of working life

72

Workers Right

(a) Right to work wage and welfare It is the right of a worker to work

according to the job assigned and to receive wages as per agreed terms and conditions

of employment and to such welfare benefits and safety measures as one is entitled to

according to law agreement settlement and award

(b) Right to freedom of association and collective bargaining and other rights

secured or guaranteed under this Ordinance and other laws Worker has inherent

right to trade unionism and collective bargaining and the right to enjoy the benefits

guaranteed to him under the law rules and regulations settlement award or

agreement

Workers Duties

(a) Worker will perform his duty as assigned by the employer or his

representative according to his best ability with due diligence care honesty

and commitment

(b) Worker will fully observe norms of organizational discipline

(c) Worker in exercise of his right will fully respect the rights of the employer

and will cooperate with him in the efficient performance of the business of the

establishment or enterprise as the case may be

332 Labor Laws Granting Rights

3321 Workmen compensation Act 1923

This act provides for the payment by certain classes of employers to their

workmen of compensation for injury or death by accident

3322 Factories Act 1934

It governs the working conditions of the industrial workers and consolidates and

amends the law made from time to time by provincial governments for regulating labor

73

in factories It is applicable to factories where 10 or more workers are working or were

engaged to work on any day of the preceding 12 months This legislation regulates

working hours paid holidays and conditions of employment of workers It also

provides for hygienic and safe working conditions and environment labor inspection

submission of various returns by employers penalties for violation of provisions of act

and employment of welfare officer by factories employing more than 500 workers

3323 Payment of wages Act 1936

This law defines wages and regulates the conditions of payment of wages to

workers It is applicable to workers employed in factories railways transport

plantation workshops and establishments of contractors According to this law

employer shall pay wages to workmen in the current currency on a working day before

the expiry of the tenth day after the expiry of the wage period and no wage period will

exceed one month

3324 The minimum wages Ordinance 1961

There was no law to provide for the fixation of minimum wages particularly for

large number of workers of smaller establishments who had no bargaining capacity

with employer With this consideration government of Pakistan Promulgated the

Minimum Wage Ordinance 1961 with the objective to create an institution to determine

minimum wage rates for different categories of workers in different industries

Consequently Tripartite Minimum Wage Boards were formed in all the provinces with

powers to examine the general price level ability of the establishment to increase

wages and other relevant factors for determination of minimum wages and refer them

to concerned provincial government

3325 Social Security Ordinance 1965

This law is applicable to all industrial and commercial establishments and

provides for a scheme of social security of insured employees and their dependents in

the event of sickness injury or death The employers pay contribution to the provincial

Social Security Institution at the rate of 7 of the wages of insured person

74

3326 The industrial and commercial employment (standing order) Ordinance 1968

This ordinance lays down the minimum terms and conditions of employment of

workers in industrial and commercial undertakings where 20 or more workmen are

employed or were employed during the preceding 12 months The ordinance provides

for payments of bonus group incentives schemes group insurance gratuity provident

fund termination and dismissal from employment redundancy re-employment of

redundant workers etc

3327 The companies profit (workersrsquo participation) Act 1968

This law is applicable to industries or establishments employing 50 workers or

whose paid up capital is Rupees 2 million or whose value of fixed assets is 4 million

Employers of these industries are required to allocate 5 percent out of their net profit

among the workers Any amount left over after distribution of the workers shares as

laid down under the rule is transferred to the Welfare Fund established under the

provisions of workers Welfare Fund Ordinance 1971

3328 The shops and establishments Ordinance 1969

It was enforced with effect from 30th June 1969 This ordinance was to amend

and consolidate the law relating to the hours of work over time weekly and festival

holidays annual casual and sick leaves time of payment of wages and other terms and

conditions of work and employment in shops and commercial industrial and other

establishments and matters connected therewith

3329 The minimum wages for unskilled workers Ordinance 1969

Government of Pakistan promulgated this ordinance in order to provide

minimum wages to unskilled workers of the industrial and commercial undertakings

employing 50 or more workers The minimum wages have been revised from time to

time Fixation of minimum wages during last fifteen years is given here

75

Period Minimum Wage in Pak Rupees

From Ist July 1993 1500-

From 1st July 2001 2500-

From 1st July 2005 3000-

From 1st July 2006 4000-

From 1st July 2007 4600-

From 1st July 2008 6000-

33210 Workers welfare fund Ordinance 1971

This law provides for establishment of workersrsquo welfare fund for providing

residential accommodation financing other welfare measure including training re-

skilling and investment in securities approved by government For this fund initial

contribution of 10 crores rupees (100 million) was made by Federal Government and

every industrial establishment having income of one hundred thousand rupees or more

in a year is required to pay 2 percent of its income in this fund

33211 Workers children (education) Ordinance 1972

This law provides the payment of Rupees 100- per annum per worker by

employer to the provincial government and government in return provides free

education up to matriculation level and thereafter in poly technique or vocational

institutes to the children of workers

33212 Employees cost of living (relief) Act 1973

Government promulgated Employees Cost of Living (Relief) Act 1973

applicable to undertakings construction industries factories mines road transport

services newspapers establishments The purpose of this law was providing payment

of cost of living allowance to workers to overcome the adverse effects of inflation on

their purchasing power It had been amended and improved with the passage of time It

76

was promulgated first time on 17th September 1973 and enforced from 1st August

1973 but later on re-enacted by parliament in December 1973 Initially parliament was

empower to amend the allowance from time to time but later on Ministry of Labor as

empowered to grant increases in the Cost of Living Allowance through notification

33213 Employees old age benefit Act 1976

This law provides for old age benefits to persons employed in industrial and

commercial establishments This law is applicable to industry and establishment

employing 10 or more workers Employers contribute 5 of the wages of secured

person employed to the Old Age Benefit Institution The male employees after

attaining 60 years and female after 55 years can receive monthly pension The

survivors of the employees are also entitled for this

333 Labor Policies

The Industrial Relation laws of Pakistan were gradually improved through

amendments in existing laws and enacting fresh laws so that provisions may become

compatible to the changing socioeconomic conditions of the country and any further

change in future It was done through labor policies Since independence five labor

policies have been announced by the government in the years 1955 1959 1969 1972

and 2002 which laid-down the parameters for the growth of trade unionism the

protection of workersrsquo rights the settlement of industrial disputes and the redress of

workers grievances These policies covered a broad spectrum of issues and envisaged

to provide for permanent transformation of laws to meet the expanding industrial base

of the country These policies also provided for compliance with international labor

standards ratified by Pakistan The effects of policies are reflected in the

metamorphosis that the labor laws underwent after the implementation of these

policies Here is a brief of these policies

3331 First policy (1955)

It was announced in August 1955 for achieving following objectives

i The growth of healthy unionism

77

ii Settlement of disputes through joint consultation

iii Protection of workers rights

iv Maintenance of industrial peace and harmony in labor management

relations

v Speedy settlement of industrial disputes through adjudication and

effective implementation of awards and

vi Welfare of workers and avoidance of their victimization and

exploitation

3332 Second policy (1959)

It was announced in February 1959 under following guiding principles

i Promotion of healthy unionism

ii Promotion of sound labor management relation

iii Provision of settlement of industrial disputes through peaceful means

iv Provision of social amenities as health education wages etc in

relation of work

v Implementation of ratified ILOrsquos Conventions and recommendations

vi Suitable means for reducing unemployment

vii Creating employment agencies and formation of employment

programmes

3333 Third policy (1969)

Third policy was announced in 1969This policy resulted in the introduction of

legislation guaranteeing freedom of association and the right to collective bargaining

in accordance with ILO Conventions 87 and 98 ratified by Pakistan A system of

78

equitable distribution of gains was put in place in the form of enactment of laws

relating to workers welfare and minimum wage of workers Salient features of this

policy are listed below

i- Measures to encourage the growth of trade unions

ii- Introduction of concept of collective bargaining agent

iii- Strengthening the scope of collective bargaining agent by giving rights

of strikes and lockouts to workers and employers respectively

iv- Extension of the principles collective bargaining of public sector

workers

v- Fixation of minimum wages of workers

vi- Institutional arrangements for minimum wages board

vii- Establishment of workers welfare fund for providing residential

accommodation etc to workers and

viii- Mechanism for settlement of industrial disputes

3334 Fourth policy (1972)

It was announced in 1972 As a result of this policy reforms in the system of

labor legislation were made which envisaged workers participation in the

management extension in the scope of labor laws enactment of laws relating to

employees old-age benefits workers children education introduction of statutory

bonus and group insurance schemes establishment of quasi-judicial body namely

National Industrial Relations Commission and the procedure for redress of workers

individual grievances

The guiding principles of this policy were

i- Emphasis on workersrsquo participation in management of industry

79

ii- Workers participation in the management committees work councils

and joint management boards

iii- Strengthening of work council

iv- Increase of workers share in companies profit from 25 to 5

v- Ensuring job security

vi- Bonus payment as statutory obligation of employer

vii- Speedy redressal of individual grievances through shop stewards

3335 Fifth policy (2002)

The draft of this policy was announced in 1999 but policy was approved in

2002 The principles objectives and action programme of the policy concentrate on

the creation of relationship of trust and cooperation between employer and employee

under the strategy of least intervention by the state A visionary approach adopted in

the Labor policy is a focus on dignity of labor fair balance of bargaining power and

productivity-based work culture with fair and equitable distribution of gains and

proceeds of the industry amongst employees entrepreneurs and the society at large

Principles Objectives and Initiatives of policy are

1 Promotion of Healthy Trade Unionism

Healthy trade unionism based on freedom of association and an effective

collective bargaining system is a pre-requisite for industrial peace productivity and

socio-economic uplift of labor An environment for growth of healthy and responsible

trade unionism will be created by encouraging responsible and representative trade

unions

2 The system of bilateral and tripartite social dialogue shall be strengthened and

streamlined to promote industrial peace and harmonious labor-management relations

Support to bilateral and tripartite mechanisms for policy formulation self-regulation

80

and peaceful resolution of disputes Bilateralism is the core element of the new labor

policy

3 Regulatory authority of government to be exercised only when bilateral

mechanisms fail to resolve disputes

4 Consolidation and simplification of labor laws Existing voluminous labor

legislation is overlapping in its coverage in several areas and anomalous in definitions

and scope The variety and complexity of labor laws has contributed adversely to

industrial relations system Need for rationalizationconsolidation of the existing laws

was acknowledged in this policy Therefore it was proposed to simplify and

consolidate these laws into following six basic laws relating to

1 - Industrial Relations

2 - Conditions of Employment

3 ndash Payment of Wages

4 - Human Resource Development

5 - Occupational Safety and Health

6 - Labor Welfare and Social Protection

5 Structural legislative changes and restructuring simplification and

minimization of Labor Judicial System to provide speedy justice in labor

sector

6 Promotion of employeesrsquo social security and social insurance programs and

improvement of labor welfare institutions namely Workers Welfare Fund

Employees Old Age Benefit Institutions and Provincial Employees Social

Security Institutions

Institutions responsible for social protection social insurance and labor welfare

need to be made fully autonomous and effective by restructuring their respective

81

management boards to ensure adequate labor and employer representation and to

strengthen their tripartite character Policy-making coordination and monitoring of the

functioning of these institutions will be entrusted to these tripartite boards exclusively

7 Progressive extension of labor laws and welfare measures to informal and

unorganized sectors

8 Special emphasis on workersrsquo children education

9 Combating child and bonded labor

10 Elimination of gender discrimination to reinforce gender equality

11 High priority given to occupational safety and health Policy provides for

enactment of law covering all workplaces and establishment of a National

Tripartite Occupational Safety and Health Council to meet the objective of

providing adequate safety and ensuring compensation to workers

12 In this policy importance of research in labor related disciplines and labor

administration necessity of training for improvement of the system and up-

gradation of the personnel have been acknowledged Policy provides for re-

organizing the existing research and training institutes and measures to

promote research and training activities on most modern lines to meet the

present day requirements

3336 Labor Protection Policy 2005

This provides protection to workers in five areas

1 Basic Rights

2 Working Conditions

3 The Working Environment

4 Social Security

82

5 The Living Environment

3337 Labor Inspection Policy 2006

Above policies and laws although important in providing guidelines and

legally enforceable standards mean relatively little unless arrangements are in place to

ensure the highest possible degree of compliance with legal provisions

Therefore government of Pakistan framed out Labor Inspection Policy 2006

after a consultation between government officials employersrsquo and workersrsquo

representatives throughout the country It is also in compliance with ILOrsquos convention

81 ratified in 1953 by government of Pakistan

This policy provides a new direction for the nationrsquos labor inspection systems

to enable them to respond to new approaches on a wide range of labor protection

issues It is integrated labor inspection policy having a modern view of labor

inspection placing the emphasis on prevention protection and improvement with

scope in following three areas

1 The terms under which workers are employed including wages hours of work

allowances leave and other benefits established by law or agreement

including protection against unfair dismissal and protection against

victimization

2 The conditions under which work takes place with regard to the safety of

workers and the action required to identify eliminate minimize and control

safety hazards concerning machinery and equipment work processes and

substances including chemicals

3 The general environment in which work takes place with regard to heat and

ventilation dust noise illumination and related factors likely to contribute to

illness or disease arising from the workplace

In this policy institutional arrangements are proposed for its implementation

Accordingly the Ministry of Labor Manpower and Overseas Pakistanis will establish

83

a National Labor Inspectorate as the central inspection authority to serve as the focal

point for the nationrsquos inspection activities However government supports the system

of self-inspection and self-reporting which means self-responsibility with managers

and workers assuming responsibility for compliance with standards concerning safety

and health and working conditions in the workplace Under this approach managers

and workers take the necessary steps to address and resolve their problems and

disagreements over labor protection issues Where the enterprise has a trade union

self-responsibility takes place through collective bargaining where managers and

workers come together and talk to resolve their differences with the outcome of their

discussions leading to a negotiated and legally binding agreement

These laws and policies pave way of granting rights and benefits to workers

but these are got implemented by the efforts of labor unions In some cases they fix a

minimum level of benefit and unions exert efforts to secure more than this For

example a level of minimum wage is fixed by government but workers receive more

than this Government fixed maximum weekly hours 48 but unions got them reduced

and 48 hours are only in one organization and in all other organizations are less than

this

CHAPTER 4 RESEARCH METHODOLOGY

41 THEORETICAL FRAME WORK

This research study is aimed at investigating the role of labor unions in HRD

by exerting efforts in Pakistanrsquos organizations for exacting benefits for workers from

employer or management motivating and pursuing workers to perform efficiently for

interest of organization If workers are not benefited properly they would be under-

developed being physically weak unsatisfied and de-motivated so will be inefficient

human resource for their organization With inefficient human resource no

organization can gain progress The efforts of unions in this research are restricted

with in the organizations only

If unions are securing benefits for workers then workers should be satisfied

with them and if unions are also serving the ends of employers then employers should

also be satisfied with their role so unions will be successful in their role playing

Success of unions in playing the role for development of human resource of

organizations will be estimated by measuring satisfaction of workers on unionsrsquo

efforts for securing benefits for them and also satisfaction of employers on unions for

motivating workers for better performance ie productivity or efficiency increase and

making harmony at workplace

411 Research Model and Variable Formation

In Industrial Relations when unions are exerting efforts for securing interests

of their workers and also motivate workers to do job dedicatedly for employers benefit

then both workers and employer are satisfied with union then unions are successful It

means unionsrsquo success (Su) is function of satisfaction of workers (Sw) and satisfaction

of employer (Se) This is expressed mathematically in the form of equation

85

Equation -1

[Su = f (Sw Se)]

Bernard (1998) is of the view that an areas joblessness helps to determine the

ability of workers and unions to get wage rises and it is difficult to secure gains when

unemployment threatens the livelihood of workers Holley Jr et al (2001) expressed

that the ability to achieve economic gains in the form of higher wages and improved

benefits is one of the important criterion workers use to gauge the effectiveness of

unions

Therefore in determination of the facts about role of unions or success one

variable used in this research is satisfaction of workers (Sw) on the efforts of unions in

securing benefits for them

For determining satisfaction of workers (Sw) on efforts of unions in securing

benefits for them 15 variable giving direct benefits to workers have been made base

These fifteen variables are showing unionsrsquo efforts for securing workers benefit

Satisfaction of workers is a moderating variable Because satisfaction of workers is

independent variables for purpose of determining unionsrsquo success (Su) as unionsrsquo

success depends on it but it further dependent on 15 variables for its own

determination

The satisfaction of the workers on the performance of unions in this research is

estimated by taking lsquocombine mean of 15 independent variables as shown in the

following equation (ie equation 2) It is a lsquocombine meanrsquo because values of these

fifteen variable have also been calculated as arithmetic mean of the data collected for

variables

86

Equation 2

SW = (Wris + Fbft + Jsec + Td + Linc + Wcon + Ot +

Hfac + Ced + We + Wdf + Prb+ Rfac + Top + Ir) 15

Where Sw is Satisfaction of Workers

Wris is Wag-Rise

Fbft is Fringe Benefits (bonus Allowances)

Jsec is Job Security

Td is Time Reduction

Hfac is Health Facilities

Ced is Children Education

Ot is Over Time

Wcon is Working Conditions

Linc is Leaves Increase

Prb is Post retirement Benefits Pension

Rfac is Recreation Facilities

Top is Training opportunities

Wdf is Wage Difference Reduction

Ir is Informing Workers about their Rights

We is Workersrsquo Education

15 is number of variables in this equation

In unionsrsquo HRD Model equation satisfaction of employers is also essential

and according to lsquoexisting problemrsquo of this research unions have been alleged and

there are misconceptions about them so satisfaction of employers is also to be

determined

87

For determining satisfaction of employers on efforts of unions in protecting

their interest motivating workers for increase of productivity or efficiency of workers

and workplace peace and harmony have been made base These are two variables

measuring unionsrsquo efforts for employersrsquo direct benefit Satisfaction of employers (Se)

is also moderating variable Because it is independent variables for purpose of

determining unionsrsquo success (Su) as unionsrsquo success depends on it but it further

dependent on 2 variables for its own calculation This is expressed in equation 3

Equation 3

Se = (Pin + Wph)2

Where Se is Employersrsquo Satisfaction

Pin is Workersrsquo Productivity Efficiency improvement

Wph is Work Place Harmony

2 is number of Independent variables in the equation

[Sources of variables Bernard (1998) Wong (2000) Holley Jr et al (2001) Aidt amp

Tzannatos 2001) Mishel and Walters (2003) George (2004)]

The conceptual frame work is illustrated in Figure 1

About these variables extensive literature references have been cited in chapter

two Concerned sections of every variable are given below

88

Variables Concerned Sections in Literature Review Page

Wris 231 Wag-Rise 21

Fbft 233 Fringe Benefits 25

Jsec 234 Job Security and Employment 26

Td 235 Time Reduction (Duty Hours) 28

Hfac 239 Health Care and Social Security 31

Ced 2314 Children Education 39

Ot 236 Payment of Over Time 29

Wcon 238 Working Conditions 30

Linc 237 Paid Leaves 29

Prb 2310 Post retirement Benefits (Pension) 33

Rfac 2313 Recreation and Social Services 37

Top 2311 Training Opportunities 34

Wdf 232 Reduction in Wage Inequality 24

Ir 2315 Workers Awareness 39

We 2312 Workersrsquo Education 36

Pin 241 Productivity Efficiency amp Profitability 39

Wph 242 Work Place Harmony amp Cooperative Role 46

89

Figure 1 Showing sequence of variables effect

Information of rights

Worker Education

Training Opportunities

Recreation Facilities

Post retirement Benefit

Children Education

Health Facilities

Working Conditions

Over Time

Wage Rise

Fringe Benefits

Job Security

Leaves Increase

Time Decrease

Productivity Increase

Workplace Harmony

Employerrsquos Satisfaction

Workerrsquos Satisfaction

Unionrsquos Success

Wage Differences

90

412 Research Hypotheses

The null hypothesis depends on 17 variable hypotheses (H1 to H17) to be

proved true so before testing null hypothesis it is essential to test these variable

hypotheses

Hypothesis 1- Unions did not exert efforts for wage rise of workers

Hypothesis 2- Unions did not exert efforts for fringe benefits like bonus and

allowances of workers

Hypothesis 3- Unions did not exert efforts for Job Security of workers

Hypothesis 4- Unions did not exert efforts for Time decrease or offer

resistance against time increase of workers

Hypothesis 5- Unions did not exert efforts for exacting health facilities

Hypothesis 6- Unions did not exert efforts for workers education facilities for

children of workers

Hypothesis 7- Unions did not exert efforts for Overtime payment for over

working

Hypothesis 8- Unions did not exert efforts for better working conditions

Hypothesis 9- Unions did not exert efforts for Leaves increase or offer

resistance against leaves decrease

Hypothesis 10- Unions did not exert efforts for post retirement benefits like

pension

Hypothesis 11- Unions did not exert efforts for arranging recreation facilities

Hypothesis 12- Unions did not exert efforts for arranging training opportunities

Hypothesis 13- Unions did not exert efforts for decreasing wage inequalities

91

Hypothesis 14- Unions did not exert efforts for informing workers about their

rights

Hypothesis 15- Unions did not exert efforts for workersrsquo education

Hypothesis 16- Unions exerted no efforts for motivating workers to increase

productivity

Hypothesis 17- Unions exerted no efforts for workplace harmony

On the basis of above Variablesrsquo Hypotheses the null hypothesis has been

developed If the above statements are proved true then null hypothesis will be proved

true otherwise alternate hypothesis will be accepted

Hypotheses Statement

Null Hypothesis H0 Unions are not beneficial bodies in industrial relations

for HRD

Alternate Hypothesis HA Unions are beneficial bodies in industrial relations for

HRD

42 POPULATION AND SAMPLING

Labor unions of public and private sector organizations their members office

bearers of the unions employers or management or their representatives and union

non-member temporary employees of Pakistanrsquos organizations are population for this

study

The selection of sample was completed in two stages In first stage

Organizations to be studied were sampled and in second stage individuals to be

interviewed (respondents) were sampled

421 Stage-lsquoIrsquo Sampling of Organizations

Due to limitations of access to all the unions only the organizations of

Islamabad and Rawalpindi (twin cities) being capital territory were targeted for

92

sampling Because the Head Offices or Head Quarters of almost all national level

countrywide organizations are situated in the Islamabad Therefore samples of big

public semi public and private organizations having their head offices in Islamabad

the federal capital of the country and some private institutions have been picked

These organizations have different activities such as manufacturing exploring oil

refining printing and publishing telecommunication telecasting town planning and

rendering municipal services power supply gas supply and banking (see appendix D-

1)

422 Stage-lsquoIIrsquo Sampling of Respondents

From sampled organizations the office bearers of CBA unions as unionsrsquo

representative Human Resource officials as management or employersrsquo

representative permanent workers and contract temporary workers were sampled

4221 Sampling of union office bearers

For union views about unionrsquos role respective President or General Secretary

were interviewed from each CBA union General Secretary or President were sampled

because of being most influential and aware about unionrsquos working and performance

their fully engagement in negotiation with management comparatively more dealing

with workers and well awareness with unionsrsquo matters and problems (appendix A-11)

4222 Sampling of permanent (Unionized) workers

For the view point of workers who are the actual partners of the activity and on

whose behalf and for whose benefit unions are formed thirty to seventy workers were

randomly picked from each organization in their head offices different sub offices or

branches or field offices of the organization and personally interviewed by the

researcher on the designed questionnaires (appendix A-1 to A-10)

93

4223 Sampling of management

For management or employers views point about role of labor unions

respective human resource officials having official interaction and dealing with unions

were interviewed from each organization (appendix A-11)

4224 Sampling of temporary (Non-unionized) workers

Ten temporary workers who were not members of union were also randomly

picked and interviewed from organizations except PCP where no temporary worker is

employed

Sampling details of permanent and temporary workers are in appendix D-2

43 DATA COLLECTION INSTRUMENTS

Questionnaires were used as research instruments for data collection

431 Questionnaires and their Structure

Four questionnaires were framed (see appendices G1 to G-4) First for Office

Bearers of the unions (Questionnaires-1) second for Permanent Workers of

organizations (Questionnaires-2) third for Employers (Questionnaires-3) and fourth

for Temporary Workers not covered by unions (Questionnaires-4)

Questionnaire 1 2 and 3 comprise all 20 questions designed in the alignment

with research questions variables Questionnaire 4 comprises only 10 questions

In questionnaires 1 2 and 3 first 17 questions are common In questionnaire-1

from office bearers of union first fifteen questions are about their efforts for direct

benefits of workers such as 1- Increase of workers Wages 2- for any Fringe Benefit of

workers 3- for Job Security 4- for Duty hoursTimings 5- for increase of workers

Leaves 6- for payment of Overtime to workers 7- for improving Working Conditions

8- for Health care of workers and their families 9- for facilities provided for

Education of workers Children 10- for Post Retirement Benefits of Workers such as

pensions 11- for Recreational Facilities for workers 12- for Training facilities for

94

workers 13 is about Unionsrsquo efforts for decreasing workers officers Wagesalary

difference 14- is for unionrsquos efforts for informing workers about their Rights as

worker and 15- is about unions efforts for arrangements for workers education These

are questions giving direct benefit to workers

First these questions were asked from unionrsquos office bearers that what they did

for benefit of workers It is unionsrsquo claim of efforts exerted and the same questions

were asked in second questionnaire from workers whether unionsrsquo claim is right or

false and workers answer is to certify unions claim of efforts and satisfaction level of

workers will be a measure of unionsrsquo efforts In the third questionnaire the same

questions were asked from management whether unionsrsquo officials have really resorted

to management for gaining benefits for workers from management and answer of

management will be an evidence supporting or denying unionsrsquo claim

Two questions 16 and 17 are about unionsrsquo efforts for the benefits of

organization or employer as 16- efforts to increase workers Productivity Efficiency

and 17- is about unionsrsquo efforts to increase workplace Harmony

First these questions were asked from Unionrsquos office bearers that what they did

for benefit of employer or management actually it is their claim and the same

questions were asked in second questionnaire from workers whether unions claim is

right or falsersquo about exertion of unionsrsquo efforts and workers answer is an evidence for

confirming or falsifying unionsrsquo claim of efforts In the third questionnaire the same

questions were asked from management whether union motivates workers to benefit

employer (by improvement of productivity or efficiency of workers and work place

harmony) and what is satisfaction level of management on unionsrsquo efforts Answers of

management will certify unionsrsquo claim and its satisfaction level will be a measurement

of unionsrsquo efforts

In first questionnaire other three questions are general as 18- is about existence

of Work Council in the organization 19- is about unionsrsquo signing of charter of demand

and 20- is about provision of any training to office bearers as unionist by any agency to

conduct unionrsquos matters

95

In second questionnaire question 18 is about essentiality of unions 19 is about

inter union relations if there are two or more unions in the organization and question 20

is about comparison of unionsrsquo strength or weakness over the passage of time

In questionnaire lsquo3rsquo first 17 questions are common to questionnaire 1 and 2

While questions 18- is about existence of Work Council in the organization 19- is

about union signing charter of demand 20-is about Union acceptance of any wage cut

in difficult financial days of the organization for its benefit

Questionnaire lsquo1rsquo provides information about unionsrsquo claim of efforts exerted

for the benefits of workers as measured by variables eg wage rise fringe benefits job

security time reduction leave with pay payment of over time working conditions

health facilities children education facilities pension post retirement benefits

recreation facilities workersrsquo training decrease of wage salary difference of workers

and officers informing them about their legal rights and workers educational

opportunities It also provides information about efforts of unions for benefit of

organization or employer measured by the variables like their contribution for

improvement of productivity and efficiency and work place harmony By responding

these questions unionrsquos representative claim their efforts and struggle for securing

interest of employees and employer which is proved or disproved by the responses of

workers in questionnaire 2 and by management in questionnaire 3

Questionnaire 2 provides information about the responses of workers about the

claims of union office bearers about their effort for betterment of workers as measured

by variables eg wage rise fringe benefits job security time reduction leave with

pay payment of over time working conditions health facilities children education

facilities pension post retirement benefits recreation facilities workersrsquo training

decrease of wage salary difference of workers and officers informing them about

their legal rights and workers educational opportunities In this questionnaire workers

confirm or reject the unionsrsquo claims of exerting efforts for workers betterment and

stand witness for unions claim of exerting efforts for benefit of employer like

motivating for improvement of productivity and efficiency work place harmony In

this questionnaire permanent workers have been interviewed

96

Questionnaire 3 provides responses of management about the same 17

variables showing contribution of unions for benefit of employer by improvement of

productivity and efficiency and work place harmony (question 16 and 17) besides

showing management responses on questions about the benefit of workers In this

questionnaire employer or managementrsquos representative confirms or rejects the

unionrsquos claim of exerting efforts for the benefits of organization (questions 16 and 17)

and stand witness for unions claim of struggle for workers benefit (questions 1-15)

because when ever they seek any benefit for workers they have to demand it from

management Here heads of HR departments or members of management and senior

officials who have to deal with unions or unionized employees have been

interviewed because unions negotiate to them for securing benefits for workers

In fourth questionnaire temporary workers (non members or non covered

employees) provide the data about the variable of workers interest eg wage rise job

security time reduction improvement of working condition children education

facilities health facilities leave with pay bonus payment overtime payment effects

of unions efforts on temporary workers and essentiality of unions etc have been found

to know the difference between facilities of unionized and non unionized employees

Questions in these questionnaires regarding variables were designed to get

response in two forms I- Yes and No and then the satisfaction level of the respondent

on the provision of respective benefit Unions representatives in Questionnaire-I reply

all the 20 questions in Yes or No

Workers in Questionnaire-2 reply all the questions regarding 15 variables

(questions 1 to 15) measuring unions efforts for securing their benefits in Yes or No

and also by expressing their satisfaction level on five points scale ranging from very

unsatisfied to very satisfied but reply as witness in Yes or No by endorsing or

rejecting for questions (16 and 17) regarding management benefits as witness

Management representatives in Questionnaire-3 reply all the questions

regarding 2 variables measuring their benefits in Yes or No and also express their

satisfaction level on five points scale ranging from very unsatisfied to very satisfied

as main beneficiary (question 16 and 17) but for other questions which are for benefit

97

of workers (question 1 to 15) management representatives reply in Yes or No

endorsing or rejecting as witness the claims of union

All the data were collected from sampled respondents by researcher by paying

visits to every respondent

44 PREPARATION OF SATISFACTION LEVEL SCALE

In the present research researcher proposed 17 variables 15 measuring unionsrsquo

efforts for workers and 2 measuring unionsrsquo efforts for employersrsquo benefits On these

efforts the satisfaction of relevant respondent is measured on 5 points Satisfaction

Level Scale (SLS) on Likert Sacle as suggested by Emory (1980) and Cooper amp

Schindler (nd) In this scale weight 5 is allotted to Very Satisfied 4 is allotted to

Satisfied 3 is allotted to Indifferent 2 is allotted to Un-Satisfied and 1 is allotted to

Very Un-Satisfied

45 PILOT STUDY

To test the completeness of questionnaires with respect to information

collection and validity of the instruments a pilot study was conducted in first week of

December 2006 It was found that due to Name workers were reluctant to respond

Besides this the question number 6 regarding the overtime was not included and

questions 18 19 and 20 about unions essentiality inter union relations (between CBA

and non CBA unions) and comparison of unions strength or weakness as compared to

past were also not present So later on name was deleted and question 6 about

overtime and questions 18 19 and 20 were added

46 CODES AND ABBREVIATIONS

In tables due to space limitation formula terms column captions and row stubs

have been abbreviated For abbreviations see appendix E-1) Variable have also been

coded for equations preparation and for writing in the tables in appendix E-2

98

47 STATISTICAL METHODS APPLIED

Collected raw data were converted in to meaningful data by tabulation for

applying statistical techniques of Percentage Arithmetic Mean ( ) Chi square (χ2) and

Comparisons to draw conclusions Then these statistical techniques were applied Both

Statistical Techniques ie Descriptive Statistics in the form of Percentages and

Arithmetic Mean and Inferential Statistical Techniques in the form of Chi square χ2

were used Simple statistical methods have been used so that those readers who have no

statistical background specially workers unionsrsquo office bearers and employers may also

understand and take benefit of this study Data collected on YesNo responses were

analyzed by using percentages and data collected on five points satisfaction level Likert

Scale were analyzed by using Weighted Arithmetic Mean as suggested by Emory

(1980) and Chi square test

The fourth method of comparison by comparing data of permanent workers

with temporary workers was also used to see the unionsrsquo role for seeking benefits for

workers

The formulae of Percentage Arithmetic Mean and Chi square are

471 Percentage

Percentage of Yes responses = Number of Yes responses 100 Number of

total responses

And

Percentage of No responses = Number of No Responses 100 Number of

total responses

472 Arithmetic Mean

Simple Arithmetic Mean is calculated by formula

99

Arithmetic Mean of frequency data is ( ) = ΣfXi n when mean is of one

organization (organizational means) or is of one variable (variable mean) of all

the organizations

Here lsquoΣ fXirsquo is total of responses multiplied by their respective value (weight)

from 1 to 5 (1 for VUS 2 for US 3 for IND 4 for S and 5 for VS) as

suggested by Emory (1980)

For estimation of mediating variables Combine mean of the weighted

arithmetic means of all the variables is to be calculated by application of

formula

Combine Mean = Σ i N

Where Σ i is sum of all the arithmetic means of all the variables and N is

number of variables which is 15 for combine mean calculation of workersrsquo variables

and 2 for combine mean calculation of employer variables

By the value of combine mean of variable-wise means of all the variables the

success of unions will be estimated If the value of the combined mean lies in the

satisfactory region being greater than lsquo3rsquo the value of indifferent weight then unions

are successful and beneficial bodies and are playing role in HRD of the organizations

If it is equivalent to indifferent then they are tolerable and if it lies in the

unsatisfactory region being less than lsquo3rsquo being below indifferent level then unions are

failed organizations and workers or employers are not satisfied with them and we can

conclude that unions are non-beneficial bodies in the organizations and are playing no

role in HRD of the organizations

100

473 Chi Square (χ2)

Formula for Chi square is χ2 = Σ (fo-fe)2fe or

χ2 = Σ (fo-fe)2fe

Σ = (sum of values)

fo = (observed value) calculated by adding all the vales in a column

fe = (expected value) calculated by dividing grand total by number of

columns

df (degree of freedom) = (c-1) (r-1)

df stands for degree of freedom

fo stands for observed frequency

fe stands for expected frequency

c stands for column

r stands for row

In this research Chi square as suggested by Emory (1980) and Cooper amp

Schindler (nd) has been applied on the totals of the columns of variable pertaining to

workers only and not on variables for employers because of limited number of

responses

The level of significance selected for making inference about population was

005

If calculated value of Chi square is more than table value at 005 significance

level at respective degree of freedom then our statement of assumption for respective

variable will be rejected and alternative view will be established

101

474 Comparison

Comparison has been made of admissible facilities enjoyed by permanent

(unionized) workers with temporary (non-unionized) workers in two lsquocomparison

tablesrsquo These comparable facilities were Wage Rise Fringe Benefits (bonus and

allowances) Job Security Weekly Working Hours Working Conditions Children

Education Facility Health Facilities Miscellaneous Allowances and Yearly Leaves

48 CALCULATIONS BY APPLYING STATISTICAL METHODS

For analyzing the data methods of percentage calculation arithmetic mean

calculation and chi square have been applied

481 Percentage Calculation of Yes No Responses

Questions 18 19 and 20 in the questionnaire 2 were answered in Yes No For

estimation of views percentage method has been applied For question 18 about the

essentiality of unions for the organizations if total of percentages of lsquoYesrsquo answers is

more than 50 then it means majority of workers is acknowledging the need of unions

for the cause of workers If the percentage of Yes answers for question 19 about the

inter unions relations is more than 50 percent it means that unionsrsquo mutual

relationships are good For Question 20 about the unionsrsquo strength as compared to

unions in the past if the percentage of Yes answers is more than 50 percent it means

that unionsrsquo of today are weaker than unions in the past

482 Means Calculations

Arithmetic Mean has been calculated of five point satisfaction level of

respondents as described by Emory (1980) and Cooper amp Schindler (nd) by giving

Value 5 to Very Satisfied (VS) 4 to Satisfied (S) 3 to Indifferent (IND) 2 to Un-

Satisfied (US) and 1 to Very Un-Satisfied (VUS) and accordingly multiplying their

frequencies with their respective value Then adding them and dividing them by

respective total frequency ldquonrdquo In Organization wise means n is obtained by

multiplying number of respondents of that organization with number of variables as in

case of ARL for workers satisfaction it will be 35 15= 525 (here 35 is number of

102

respondents and 15 is number of variables) For variable wise mean for workerrsquo

variable n will be 525 which is total number of respondents for any variable being

sample size When mean is calculated for organization it is lsquoorganizational meanrsquo and

when calculated for variable (in variable wise calculation) it is lsquovariable meanrsquo Then

all the variable means are added to each other and divided by number of variables

(total number of variables for workers is 15) to calculate lsquoCombined Meanrsquo of all the

variables of all the organizations

Organizational mean of variables for management variables have been

calculated organization wise by adding weights of responses of that organization and

dividing the sum by 2 which is number of variables benefiting employer for any

organization

Similarly lsquovariable meanrsquo of variables for unionsrsquo efforts for employers were

calculated by adding weighted values of responses of all the respondents for every

variable and then dividing it by 10 then these all variable means were added to each

other and divided by 2 to calculate lsquoCombined Meanrsquo which is direct measure of

employersrsquo satisfaction and consequently of unionsrsquo success

If Combined Mean is below Indifferent level by bearing value less than 3 than

it means workers or employers of organizations are not satisfied with unions efforts

and unions are not successful so unions are not beneficial bodies for organizations If

Combined Mean is equivalent to lsquoIndifferentrsquo by bearing value equal to 3 then it

means unions workers or employers of organizations are neither happy nor unhappy or

number of satisfied and unsatisfied workers is equal So unions if exist have no benefit

or harm or if not existing even then have no benefit or harm but if Combined Mean is

more than ldquoIndifferentrdquo level then majority of workers or employers of organizations

is satisfied with their efforts so their existence is required and we can conclude that

unions are beneficial bodies for organizations

These means have been calculated for responses of workers and for responses

of employermanagement organization-wise of all variables as well as variable-wise

of all the organizations

103

At every stage may be Organization Means Variable Means or Combined

Mean if its value is below 3 (which is weight allotted to ldquoIndifferentrdquo response level)

then it shows clearly that union is not efficient and beneficial It will prove the Null

Hypothesis that unions are not beneficial bodies for organizations and it is to be

accepted If the Mean is above 3 then it shows that the union is efficient and its

presence is beneficial so null hypothesis is to be rejected and Alternate hypothesis is to

be accepted

483 Chi Square Applications

To see the significance and to test assumption statements for every variable

Chi square technique has also been applied for variables pertaining to workers at 005

level of significance as has been applied for testing of statements by Ahmed (2004)

Aleem (2004) Where calculated value of Chi square is more than table value then the

assumption statement is to be rejected and accepted the alternate view point for that

variable It is another parameter to check the efficiency and efforts of unions for

seeking benefits for their workers Chi Square has been applied only on responses of

workers and not on responses of management because of very small number of

respondents

484 Comparison Applications

Comparison has also been made of facilities availed by unionized workers with

non-unionized temporary workers to see their efforts whether facilities had been won

by unions efforts or it was merely blessing of employer or government If there was no

difference than unions were also not beneficial bodies but if unionized workers were

enjoying more facilities and better terms of employment than unions are beneficial

bodies in the organizations

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS

According to theoretical frame work fifteen variables have been targeted for

measuring the efforts of union for benefits of workers These are Wages-rise (Wris)

Job-security(Jsec) Time-decrease (Td) Working-conditions (Wcon) Children-

104

education (Ced) Health-facilities (Hfac) Financial-benefits(Fbft) Over time payment

(Ot) Leaves Increase (Linc) Post Retirement and pension benefits (Prb) Recreation

facilities (Rfac) Training opportunities (Top) Decrease of wage salary difference

gape of workers and officers (Wdf) Informing workers about rights (Ir) and Workers

education These variables have been measured at five scale satisfaction level ie Fully

Satisfied valued as 5 Satisfied valued as 4 Indifferent valued as 3 Unsatisfied valued

as 2 and Fully Unsatisfied valued as 1 The Frequency of variables has been multiplied

with concerned value and then valued frequencies added and their sum has been

divided with sample size of the concerned organization for calculation of organization

mean and with whole sample for sampled mean

For every variable as value of Indifferent satisfaction level is 3 so if sample

mean is 3 then it means union is neither beneficial nor non-beneficial but tolerable and

there is no harm of union if not giving any benefit and no loss if not existing If mean

is less than three than union is not beneficial body and if mean is more than 3 than

union is a beneficial body More it is bigger than 3 the more beneficial is the union for

workers or more union has put efforts for acquiring workers benefit

Combine mean of all the variables means is obtained by putting their values in

equation 2 Details of codes used in the equation is in appendix E-2

SW = (Wrise + Fbft +Jsec + Td + Wcon + Ced + Hfac +

+ Linc+ Ot + Prb + Rfac + Top + Wdf + Ir + We+)15

This combined mean is measure of satisfaction level of workers and a

component of unionsrsquo success equation lsquoSu = f Sw Sersquo If combined mean is above

3 (indifferent level) unions are successful with reference to putting efforts for workers

benefits and value of combined mean above 3 will be a scale of level of success If

combined mean is 3 then unions are neither successful nor harmful If mean is below 3

then unions are failed and there presence in the organization is not benefiting so there

existence should be avoided

105

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits

Two variables have been targeted for measuring the efforts of unions for

employersrsquo benefits

These are efforts to increase workers productivity or efficiency (productivity in

manufacturing efficiency in non manufacturing and services) (Pin) and efforts for

work place peace and harmony (Wph) The Frequency of variablesrsquo is multiplied with

concerned weight and then weighted frequencies are added and their sum is divided

with sample size for calculation of sampled mean

As weight of indifferent satisfaction level is 3 so if sample mean is 3 then it

means union is neither beneficial nor non-beneficial but tolerable and there is no harm

of union if not benefited If mean is less than three than union in not beneficial body

and if mean is more than 3 than union is a beneficial body More it is bigger than 3 the

more beneficial is the union for workers Weighted average of all the variables has

been obtained and then all these means have been put in the equation

Se = (Pin + Wph)2

Here 2 is number of variables This gives the combined mean of employersrsquo

variables Combined mean is measure of satisfaction of employer with the unions

If combined mean is three then union has neither benefit nor harm or equally

satisfying and un-satisfying if less than 3 then employer is unsatisfied union is not

beneficial body for the employer of the organization and if it is bigger than 300 then

the employer is satisfied so union is beneficial body for the employer of the

organization

CHAPTER 5

DATA ANALYSIS AND RESULTS

This chapter is dedicated to present and analyze collected data by applying

statistical operations

51 DATA PRESENTATION

Data obtained from respondents by asking questions 1 to 17 in questionnaire 1

2 and 3 are tabulated in appendices F-1 to F-10

In appendices F-1 to F-10 every table has 11 columns First column contains

coded name of variable Columns 2 and 3 show answers of workers about unionsrsquo

role column 2 contains number of respondents replying in Yes and column 3 contains

number of respondents replying in No Columns 4 to 8 express satisfaction level of

workers from very satisfied to very unsatisfied Column 9 represents unionsrsquo response

on the same question It is claim of union about the services they rendered and it is

answered in YesNo Column 10 contains the managementsrsquo answers on unionsrsquo

performance as witness for efforts exerted for benefit of workers and certifier for

variables for benefit of management itself Column 11 shows the numerical value of

managementrsquos answer of variables pertaining to employersrsquo interest protected by

unions Data for all other tables drawn for analysis have been taken from these tables

Replies of questions 18 19 and 20 of questionnaire 2 are presented in table in

appendix F-11 replies of question number 18 19 and 20 of questionnaire 1 are

presented in table in appendix F-12 and replies of question number 18 19 and 20 of

questionnaire 3 are presented in table in appendix F-13

511 Organization-Wise Description of Respondents

Data collected from respondents pertaining to questions numbers 1 to 17 of all

the organizations have been tabulated organization wise in the appendices F-1 to F-10

Their description is given below

107

5111 Description of respondents of ARL

For Attock Refinery Limited (ARL) for unionrsquos opinion general secretary of

the union in the presence of president for managementrsquos view point manager HR and

among workers 30 permanent workers and 10 temporary or contract workers were

interviewed in Head office and Refinery at Morgah Rawalpindi Because of

difficulties of gaining access to the workplace only 30 workers of different trades were

randomly contacted in the parking administrative offices and outside of refinery at

different times randomly Majority of workers were interviewed during breaks and

after end of duty (appendices A-1 and B-1) Ten temporary workers were interviewed

similar way

5112 Description of respondents of CDA

In Capital Development Authority (CDA) for unionrsquos opinion president of the

union for managementrsquos view point Deputy Director Labor Affairs and among

workers 70 permanent workers were interviewed in head office and at divisional and

directorates offices field complaint office and rest-house workers (appendices A-2

and B-2)

For temporary workersrsquo opinion ten temporary workers were interviewed in

different offices

5113 Description of respondents of IESCO

In Islamabad Electric Supply Company (IESCO) for unionrsquos opinion general

secretary of the union for managementrsquos views manager HR and among workers 70

permanent workers and 10 temporary or contract workers were interviewed in head

office in various circle offices (office of Executive Engineer) divisional offices (office

of Sub Divisional Officer) grid stations and customer services centers Islamabad and

Rawalpindi (appendices A- 3 and B-3)

108

5114 Description of respondents of KTM

In Kohinoor Textile Mills (KTM) for unionrsquos opinion general secretary of the

union for managementrsquos views manager HR and among workers 35 permanent

workers and 10 temporary or contract workers were interviewed in Head office and

workers residential colony at Rawalpindi Because of difficulties of gaining access to

the workplace only 35 workers of different trades were randomly contacted in the

colony and in surroundings of the factory (appendices A- 4 and B-4)

5115 Description of respondents of OGDCL

In Oil and Gas Development Company Limited (OGDCL) for unionrsquos opinion

General secretary of the union and for managementrsquos view point manager HR and

among workers randomly picked 50 permanent workers and 10 temporary or contract

workers were interviewed in head office Islamabad at store I-9 Staff College (OGTI)

Islamabad and in different oilfields (appendices A-5 and B-5)

5116 Description of respondents of PCP

In Printing Corporation of Pakistan (PCP) for unionrsquos opinion general

secretary of the union and for managementrsquos views point Director Administration and

from workers randomly picked 50 permanent workers were interviewed from head

office and printing press Islamabad There is no temporary worker in the organization

(appendices A-6 and B-6)

5117 Description of respondents of PTCL

In Pakistan Telecommunication company Limited (PTCL) for unionrsquos opinion

General Secretary of the union and for managementrsquos view point General Manager

Human Resource and among workers randomly picked 70 permanent workers and 10

temporary or contract workers were interviewed in head office G-8 Islamabad

divisional engineers offices telephone exchanges revenue offices customers services

centers in Islamabad and Rawalpindi and line men working in the field (appendices

A- 7 and B-7)

109

5118 Description of respondents of PTV

In Pakistan Television Corporation (PTV) for unionrsquos opinion general

secretary of the union and for managementrsquos view point controller HR and

administration and among workers randomly picked 50 permanent workers and 10

temporary or contract workers were interviewed in head quarter (administration office

head office) PTV Main telecasting Station F-5 Islamabad at PTV ONE and ETV at H-

9 Islamabad (appendices A- 8 and B-8)

5119 Description of respondents of SNGPL

In Sui Northern Gas Pipe Line Limited (SNGPL) for unionrsquos opinion General

Secretary of the union and for managementrsquos views manager HR and among workers

randomly picked 50 permanent workers and 10 temporary or contract workers were

interviewed in General Manager office I-9 Islamabad in different departments such as

construction department billing department connection department meter reading

department sales department recovery department administration department and

marketing department and in revenue offices of Saddar Rawalpindi and Satellite Town

Rawalpindi and workers in the fields (appendices A- 9 and B-9)

51110 Description of respondents of ZTBL

In Zarhi Tarraqqiatti Bank Limited (ZTBL) for unionrsquos opinion general

secretary of the union and for managementrsquos view point Senior Vice President

administration and HR and among workers randomly picked 50 permanent workers

and 10 temporary or contract workers were interviewed in head office Zero Point

Islamabad at zonal office G-7 Islamabad and in some branches (appendices A- 10 amp

B-10)

51111 Workers responses of the questions about essentiality inter unions relations and unions status as compared to past

To find out whether unions are essential in the organizations or not what are

inter union relationships of unions where if unions are more than one in the

organization and what happened with the strength of unions with the passage of time

110

workers of the organizations were asked questions 18 19 and 20 respectively

Responses of workers are presented in table in appendix F-11 Three organizations

ARL PCP and ZTBL have single union so in analysis of question 18 their respondents

will not be considered in sample

51112 Unionsrsquo office bearersrsquo responses of the questions about work council charter of demand and unionistsrsquo training

These responses are tabulated in table in appendix F-12 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

51113 Management responses about work council charter of demand and wage cut

These responses are tabulated in table in appendix F-13 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA

Here data tabulated in appendices F-1 to F-10 have been analyzed Tables have

been constructed for this purpose Tables 1 to 10 are meant for variables pertaining to

workers Where unions are claimer workers are certifier as actual party and

management is witness Every table comprise 7 columns first column contains

variables column 2 to 6 contain workersrsquo responses with satisfaction level valued

from 5 for very satisfied (VS) to 1 very un-satisfied (VUS) about any effort and

column 7 contains total number of respondents for any variable Total of all the

columns has been multiplied by its value to obtain valued total and valued totals of all

columns from 2 to 6 added (such as in table-1 total of column two ie 32 multiplied by

its value ie 5 so valued total came 160 and valued total of column three that is 944

valued total of column four that is 402 and valued total of column five that is 96 and

their grand valued total is 1602 ) and divided by number of all the responses (450

111

which is product of number of respondents ie 30 multiplied by number of variables

ie 15) to get organizationrsquos mean that is 356 It is measure of satisfaction of workers

on efforts of union of the organization for their benefits

Tables from 11 to 20 are meant for calculating arithmetic means of responses of

variables pertaining to employer and contain 3 columns Column one is for variable

name column 2 contains responses of employer and column 3 contains values of these

responses Values in the column 3 have been added and their total has been divided by

number of variables ie 2 to calculate mean of responses of employer It is really

measure of satisfaction of employer on efforts of union of one organization for

employerrsquos interest

521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES

Organization wise arithmetic means and percentages of all the organizations on

the basis of the variables pertaining to workers have been calculated below in tables 1

to table 10

112

Table-1 Responses of Workers of ARL Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 2 20 8 - - 30

Fbft 8 16 4 2 - 30

Jsec 8 18 4 - - 30

Td 16 14 - - 30

Linc 24 6 - - 30

Ot 20 10 - - 30

Wcon 4 22 4 - - 30

Hfac 20 6 4 30

Ced 2 14 10 4 30

Prb - 2 14 14 30

Rfac 2 10 8 10 30

Top 18 8 4 30

We 12 14 4 30

Wdf 6 8 12 4 30

Ir 16 12 2 30

Total = f 32 236 134 48 450

fXi 160 944 402 96 1602 Organizational Mean (ARL) = Σ fXi450= 1602450 = 356

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 356 which is more than 3 (Indifferent level) showing union of ARL is

exerting efforts for exacting benefits for workers

Union of ARL claimed for exertion of efforts for securing all benefits for workers and

management confirmed it (see column 9 and 10 of appendix F-1)

113

Table 2 Responses of Workers of CDA (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris 40 14 16 70

Fbft 62 6 2 70

Jsec 48 18 4 70

Td 36 32 2 - 70

Linc 35 33 2 70

Ot 30 32 8 70

Wcon 30 28 12 70

Hfac 40 14 16 70

Ced 13 48 9 70

Prb 14 50 6 0 70

Rfac 58 12 70

Top 10 20 40 70

We 28 34 8 70

Wdf 28 28 14 70

Ir 54 10 6 70

Total = f 14 504 381 151 1050

fXi 70 2016 1143 302 3531 Organizational Mean (CDA) = Σ fXi1050 =35311050 = 336

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 336 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts for exacting benefits for workers

Union of CDA claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for time decrease leaves increase

recreation facilities and workersrsquo education (see column 9 and 10 of appendix F-2)

114

Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris - 26 22 22 - 70

Fbft 2 12 56 - 70

Jsec 7 40 13 10 - 70

Td - 40 23 7 - 70

Linc - 40 25 5 - 70

Ot 36 20 14 - 70

Wcon 50 10 10 - 70

Hfac 26 24 20 - 70

Ced 9 44 17 - 70

Prb 4 46 20 - 70

Rfac 47 23 70

Top 22 34 14 - 70

We 36 24 10 70

Wdf - 2 37 31 - 70

Ir - 49 10 11 - 70

Total = f 7 382 391 270 1050

fXi 35 1528 1173 540 3276 Organizational Mean (IESCO) = Σ fXi1050 = 32761050 = 312

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 312 which is more than 3 (Indifferent level) showing union of IESCO is

exerting efforts for exacting benefits for workers

Union of IESCO claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for fringe benefits leaves increase

workersrsquo education and reduction of officers workers salary difference (see column 9

and 10 of appendix F-3)

115

Table 4 Responses of Workers of KTM (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris - 10 4 21 35

Fbft - 17 17 1 35

Jsec - 15 10 10 35

Td - 13 13 9 35

Linc - 10 16 9 35

Ot - 12 15 8 35

Wcon - 30 5 - 35

Hfac 6 25 4 - 35

Ced 4 20 11 - 35

Prb - 17 10 8 35

Rfac - 16 10 9 35

Top 22 13 35

We 12 17 6 35

Wdf 2 7 26 35

Ir 20 12 3 35

Total = f 10 219 173 123 525

fXi 50 876 519 246 1691 Organizational Mean (KTM) = Σ fXi525= 1691525 = 322

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 322 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts for exacting benefits for workers

Union of KTM claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for wage rise time decrease leave

increase overtime payment recreation facilities training opportunities and reduction

of officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

116

Table 5 Responses of Workers of OGDCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris - 35 15 - - 50

Fbft 2 34 10 4 - 50

Jsec - 45 5 - - 50

Td - 40 10 - - 50

Linc - 40 10 - - 50

Ot - 22 16 12 - 50

Wcon 4 33 10 3 - 50

Hfac 17 28 5 - - 50

Ced - 8 36 06 - 50

Prb - 27 13 10 - 50

Rfac 18 14 14 04 - 50

Top 4 19 20 7 - 50

We 21 19 10 - 50

Wdf 5 26 14 5 - 50

Ir - 34 12 4 - 50

Total = f 50 426 209 65 750

fXi 250 1704 627 130 2711

Organizational Mean (OGDC) = Σ fXi750 = 2711750 = 361

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 361 which is more than 3 (Indifferent level) showing that union of

OGDC is exerting efforts for exacting benefits for workers

Union of OGDC claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-5)

117

Table 6 Responses of workers of PCP (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 37 4 9 50

Fbft 33 8 9 50

Jsec 4 40 4 2 50

Td 40 4 6 50

Linc 38 7 5 50

Ot 37 9 4 50

Wcon 39 6 5 50

Hfac 40 5 5 50

Ced 11 16 23 50

Prb 5 30 15 50

Rfac 30 20 50

Top 24 26 50

We 30 20 50

Wdf 5 37 8 50

Ir 20 21 9 50

Total = f 4 375 225 146 750

fXi 20 1500 675 292 2487 Organizational Mean (PCP) = Σ fXi750 = 2487750 = 332

Weighted Arithmetic Mean of Satisfaction Level of the responses of workers

for all the variables is 332 which is more than 3 (Indifferent level) showing union of

PCP is exerting efforts for exacting benefits for workers

Union of PCP claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities

recreation facilities training opportunities workersrsquo education and reduction of

officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

118

Table 7 Responses of workers of PTCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 28 18 24 - 70

Fbft 14 16 40 70

Jsec 2 39 15 14 - 70

Td 40 20 10 - 70

Linc 36 24 10 - 70

OT 10 38 22 - 70

Wcon 36 24 10 - 70

Hfac 44 16 10 - 70

Ced 11 32 27 - 70

Prb 4 44 22 - 70

Rfac 40 30 - 70

Top 16 40 14 - 70

We 19 39 12 70

Wdf 32 38 - 70

Ir 18 34 18 70

Total = f 2 315 432 301 1050

fXi 10 1260 1296 602 3168 Organizational Mean (PTCL) = Σ fXi1050 = 31681050 = 302

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 302 which is very marginally bigger than 3 (Indifferent level) showing

that union of PTCL is exerting efforts for exacting benefits for workers but the

situation is hardly satisfactory and union is approximately at tolerance level Thus

PTCL union has much to do for workers

Union of PTCL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities post

retirement benefits recreation facilities (see column 9 and 10 of appendix F-7)

119

Table 8 Responses of workers of PTV (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 6 26 14 4 50

Fbft - 36 12 2 50

Jsec 7 39 3 1 50

Td 37 10 3 50

Linc 38 9 3 50

Ot 41 6 3 50

Wcon 39 11 50

Hfac 37 5 8 50

Ced 13 20 17 50

Prb 21 24 5 50

Rfac 10 34 6 50

Top 16 24 10 50

We 33 8 9 50

Wdf 23 14 13 50

Ir 30 10 10 50

Total = f 13 439 204 94 750

fXi 65 1756 612 188 2621 Organizational Mean (PTV) = Σ fXi750 = 2621 750=350

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 350 which is more than 3 (Indifferent level) showing that union of PTV

is exerting efforts for exacting benefits for workers

Union of PTV claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for recreation facilities (see column 9

and 10 of appendix F-8)

120

Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 7 30 10 3 50

Fbft 5 30 12 3 50

Jsec 5 34 11 50

Td 34 16 50

Linc 32 18 50

Ot 3 21 23 3 50

Wcon 3 40 4 3 50

Hfac 4 34 10 2 50

Ced 6 22 22 50

Prb 37 8 5 50

Rfac 16 30 2 2 50

Top 10 34 6 50

We 15 25 10 50

Wdf - 17 28 5 50

Ir 25 14 11 50

Total = f 43 395 237 75 750

fXi 215 1580 711 150 2656 Organizational Mean (SNGPL) = Σ fXi750 = 2656750 = 354

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 354 which is more than 3 (Indifferent level) showing that union of

SNGPL is exerting efforts for exacting benefits for workers

Union of SNGPL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for time decrease and leaves increase

(see column 9 and 10 of appendix F-9)

121

Table 10 Responses of workers of ZTBL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables

Wris - 32 14 4 - 50

Fbft 28 14 8 - 50

Jsec 26 20 4 - - 50

Td 28 16 6 - 50

Linc 28 14 8 50

Ot 16 12 22 - 50

Wcon 32 14 4 - - 50

Hfac 1 38 4 7 - 50

Ced 22 22 6 - 50

Prb 2 18 30 - 50

Rfac 28 22 - 50

Top 26 20 4 - 50

We 28 18 4 50

Wdf 2 20 22 6 - 50

Ir 4 34 7 5 - 50

Total = f 65 336 217 132 750

fXi 325 1344 651 264 2584 Organizational Mean (ZTBL) = Σ fXi750 = 2584750= 345

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 345 which is more than 3 (Indifferent level) showing that union of ZTBL

is exerting efforts for exacting benefits for workers

Union of ZTBL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-10)

122

522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES

Organization wise arithmetic means of all the organizations on the basis of the

two variables pertaining to management have been calculated below in tables 11 to

table 20

Table 11 Responses of Management of ARL

Management Responses

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (ZTBL) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing that union of

ARL is exerting efforts in exhorting workers to work for the interest of employer

Therefore union is successful

123

Table 12 Responses of Management of CDA

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (CDA) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts in exhorting workers to work for the interest of employer

124

Table 13 Responses of Management of IESCO

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph FS 5

Total 9

Mean 92 = 45

Organizational Mean (IESCO) = Σ Xi2 = 92 = 45

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 45 which is more than 3 (Indifferent level) showing union of IESCO

is exerting efforts in exhorting workers to work for the interest of employer

125

Table 14 Responses of Management of KTM

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 84 = 400

Organizational Mean (KTM) = Σ Xi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts in exhorting workers to work for the interest of employer

126

Table 15 Responses of Management of OGDC

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 3 5

Organizational Mean (OGDC) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL

is exerting efforts in exhorting workers to work for the interest of employer

127

Table 16 Responses of Management of PCP

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PCP) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is

exerting efforts in exhorting workers to work for the interest of employer

128

Table 17 Responses of Management of PTCL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph ND 3

Total 6

Mean 62 = 30

Organizational Mean (PTCL) = Σ Xi2 = 62 = 30

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 3 which is equivalent to Indifferent level showing employer of PTCL

is at indifferent level and union is tolerable for employer Here again unionsrsquo

performance needs much improvement

129

Table 18 Responses of Management of PTV

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PTV) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PTV is

exerting efforts in exhorting workers to work for the interest of employer

130

Table 19 Responses of Management of SNGPL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (SNGPL) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL

is exerting efforts in exhorting workers to work for the interest of employer

131

Table 20 Responses of Management of ZTBL

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 82 = 400

Organizational Mean (ZTBL) = Σ fXi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is

exerting efforts in exhorting workers to work for the interest of employer

132

53 VARIABLE-WISE ANALYSIS

In this section performance of unions has been estimated by measuring

satisfaction level of respondents ie workers and employers in the lights of their

responses for every variable by applying arithmetic mean and Chi squire

Mean of satisfaction level of workers of all the sample for all 15 variables has

been calculated individually in tables from table 21 to table 35 and then combine mean

of satisfaction level of all variable has been calculated in lsquotable 36rsquo by adding these

individual variable means and dividing it on 15 which is total number of variable

In tables 21 to 35 totals of columns 3 to 7 have been multiplied by their

respective value (given in top row stubbed lsquoValuersquo) to obtain valued total and these

valued totals of all columns have been added and divided by lsquoNrsquo which is total of

respondents (total of sample) and equal to 525 the outcome is lsquovariable meanrsquo for

concerned variable This mean measures the satisfaction level of all the sampled

workers on the efforts of unions exerted for that single benefit

Chi square test has been applied on 15 variables in tables 37 to 51 on totals of

columns fetched from tables 21 to 35 respective variable at significance level of 005

and degree of freedom according to data of variable Calculated values of Chi square

have been compared with table value at 005 significance level and respective degree

of freedom In case calculated value is greater than table value the hypothesis for that

variable is to be rejected and alternative view is to be accepted

133

531 MEAN CALCULATION OF VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERSrsquo BENEFITS

Variables that are measuring unionsrsquo efforts for securing benefits for workers

are fifteen These have been analyzed by constructing tables and calculating their

arithmetic mean

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 21 Mean calculations-wage rise (Wris)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 20 8 - -

CDA 70 40 14 16

IESCO 70 - 26 22 22 -

KTM 35 - 10 4 21

OGDCL 50 - 35 15 - -

PCP 50 37 4 9

PTCL 70 28 18 24 -

PTV 50 6 26 14 4

SNGPL 50 7 30 10 3

ZTBL 50 - 32 14 4 -

Total (f) 525 15 284 123 103 -

fXi 75 1136 369 206 - 1786

Variable Mean = Σ fXi 525 =1786 525 = 340

134

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization (ten organizations) for Wage rise of workers

is 340 which is bigger than 3 (Indifferent Level) showing unions as a whole have

exerted effective efforts for rise in wages of worker

Efforts of unions for wage rise can be estimated from this fact that at time of

survey (December 2006) minimum wage was Rupees 4000 but 324952 workers

were earning wages between Rupees 5000 and 10000 and 4952 between 10000

and 20000 and 118 percent were getting wages even more than rupees 20000

(Appendix C-3) Rise in wages was 15 to 35 except of KTM (see Appendix C-1)

This is really an achievement at the part of labor unions proving their success

Out of 525 respondents 15 were very satisfied 284 satisfied 123 indifferent

and only 103 were unsatisfied (see Table 21 and Figure2)

Management of all the organizations Except KTM also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

So Hypothesis 1 that unions did not exert efforts for wage rise of workers is

rejected and alternate view is established

Figure-2 - Satisfaction Level of Workers on Wage Rise

Very Satisfied 15

3

Satisfied 284 54

Indifferent 123 23

un-Satisfied 103 20 Very Satisfied

SatisfiedIndifferentun-Satisfied

135

Hypothesis 2 (H2) Unions did not exert efforts for financial benefits like bonus of Workers

Table 22 Mean Calculations - Bonus (Financial Benefits) (Fbft)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 16 4 2 -

CDA 70 62 6 2

IESCO 70 2 12 56 -

KTM 35 - 17 17 1

OGDCL 50 2 34 10 4 -

PCP 50 33 8 9

PTC) 70 14 16 40

PTV 50 - 36 12 2

SNGPL 50 5 30 12 3

ZTBL 50 28 14 8 -

Total (f) 525 15 272 111 127

fXi 75 1088 333 254 1750

Variable Mean = Σ fXi 525 =1750 525 = 333

136

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Fringe Benefits (Bonus) of workers is

333 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for obtaining bonuses for worker So Hypothesis 2 that

unions did not exert efforts for financial benefits like bonus of workers is rejected and

alternate view is established

Except PCP workers of all other organizations are getting bonuses and in some

organizations bonuses are two or more ARL paid 5 and KTM has paid 4 bonuses in

previous charter (Appendix C-1) ARL KTM and OGDCL pay 5 percent of their

profit to workers and KTM besides this also makes payment to social security and 5

percent equivalent of workersrsquo salary to Employees Old Age Benefit department

(Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Out of 525 respondents 15 were very satisfied 272 satisfied 111 indifferent

and only 127 were unsatisfied (see Table 22 and Figure-3)

Management of all the organizations except IESCO also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

Figure-3 - Satisfaction Level of Workers on Financial Benefits

Very Satisfied 15

3

Satisfied 272 52Indifferent

111 21

un-Satisfied 127 24 Very Satisfied

SatisfiedIndifferentun-Satisfied

137

Hypothesis 3 (H3) Unions did not exert efforts for Job Security of workers

Table 23 Mean Calculations Job Security (J-sec)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 18 4 - -

CDA 70 48 18 4

IESCO 70 7 40 13 10 -

KTM 35 - 15 10 10

OGDCL 50 - 45 5 - -

PCP 50 4 40 4 2

PTC) 70 2 39 15 14 -

PTV 50 7 39 3 1

SNGPL 50 5 34 11

ZTBL 50 26 20 4 - -

Total (f) 525 59 338 87 41 0

fXi 295 1352 261 82 1990

Variable Mean = Σ fXi 525 =1990 525 = 379

138

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Job Security of workers is 379which is

bigger than 3 (Indifferent Level) showing unions as a whole have exerted effective

efforts for Job Security of worker

Out of 525 respondents 59 were very satisfied 338 satisfied 87 indifferent and

only 41 were unsatisfied (see Table 23 and Figure-4)

Employees of all the organizations under study are enjoying job security due to

unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts of

unions for job security only 41 workers were unsatisfied (Table23)

Management of all the organizations also confirmed that unions have been

exerting efforts for workers job security (see tables in appendices F-1 to F-10 column

management responses)

So hypothesis 3 that unions did not exert efforts for Job Security of workers is

rejected and alternative view is established

Figure-4 - Satisfaction Level of Workers on Job Security

Very Satisfied 59

11

Satisfied 338 64

Indifferent 87 17

un-Satisfied 41 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

139

Hypothesis 4 (H4) Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 24 Mean Calculations Time Reduction (Td)

Satisfaction Level No VS S IND US VUS Σ fXi

values (Xi) 5 4 3 2 1

Organization

ARL 30 16 14 - -

CDA 70 36 32 2 -

IESCO 70 - 40 23 7 -

KTM 35 - 13 13 9

OGDCL 50 - 40 10 - -

PCP 50 40 4 6

PTCL 70 40 20 10 -

PTV 50 37 10 3

SNGPL 50 34 16

ZTBL 50 28 16 6 -

Total (f) 525 - 324 158 43

fXi 1296 474 86 1856

Variable Mean = Σ fXi 525 = 1856525 = 354

140

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Reduction in daily duty hours or

resistance offered for increase of time duration of workers is 354 which is bigger

than 3 (Indifferent Level) showing that unions as a whole have exerted effective

efforts for timings of worker

Only one organization KTM has 48 working hours per week at the rate of 8

hours per day Two organizations ARL and PCP have 40 working hours per week and

other seven organizations have weekly working hours less than 40 (Appendix C-2)

This time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation Out of 525 respondents 324 were

satisfied 158 indifferent and only 43 were unsatisfied (see Table 24 and Figure-5)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except management of

CDA PTV and SNGPL (see tables in appendices F-1 to F-10 column management

responses)

So the hypothesis 4 that unions did not exert efforts for time decrease or

offered resistance against time increase of workers is rejected and alternative view is

established

Figure-5 - Satisfaction Level of Workers on Time Reduction

Very Satisfied 0

0

Satisfied 324 62

Indifferent 158 30

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

141

Hypothesis 5 (H5) Unions did not exert efforts for health facilities Table 25 Mean Calculations - Health Facilities (Hfac)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 6 4

CDA 70 40 14 16

IESCO 70 26 24 20 -

KTM 35 6 25 4 -

OGDCL 50 17 28 5 - -

PCP 50 40 5 5

PTCL 70 44 16 10 -

PTV 50 37 5 8

SNGPL 50 4 34 10 2

ZTBL 50 1 38 4 7 -

Total (f) 525 28 332 93 72 -

fXi 140 1328 279 144 1891

Variable Mean = Σ fXi 525 = 1891525 = 360

142

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Health Facilities of workers is 360

which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for Health Facilities of worker

All the organizations are providing medical treatment facilities to their workers

(Appendix C-2) and out of 525 responding workers 28 were very satisfied 332

workers were satisfied 93 indifferent and 72 were un-satisfied (Table-25 amp figure-6 )

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 5 that unions did not exert efforts for health facilities is

rejected and alternative view is established

Figure-6 - Satisfaction Level of Workers on Health Facilities

Very Satisfied 28

5

Satisfied 332 63

Indifferent 93 18

un-Satisfied 72 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

143

Hypothesis 6 (H6) Unions did not exert efforts for workersrsquo children education facility

Table 26 Mean calculations- Children Education (Ced)

Variable Mean = Σ fXi 525 = 1583525 = 302

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 14 10 4

CDA 70 13 48 9

IESCO 70 9 44 17 -

KTM 35 4 20 11 -

OGDCL 50 - 8 36 06 -

PCP 50 11 16 23

PTCL 70 11 32 27 -

PTV 50 13 20 17

SNGPL 50 6 22 22

ZTBL 50 22 22 6 -

Total (f) 525 6 127 261 131

fXi 30 508 783 262 1583

144

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Children Education Facilities for

workers is 302 which is very slightly bigger than 3 (Indifferent Level) showing that

unions as a whole have exerted efforts for Education Facilities for children of workers

The satisfied workers 133 (6+127) and unsatisfied workers 131 are almost

equal with 261 indifferent workers on this facility which shows that unions need to put

more efforts for this facility (Table-26 amp Figure -7)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

PCP (see tables in appendices F-1 to F-10 column management responses)

So the hypothesis 6 that unions did not exert efforts for workersrsquo children

education facility is rejected and alternate view is established

Figure-7 - Satisfaction Level of Workers on Children Education Facilities

Very Satisfied 6

1Satisfied

127 24

Indifferent261 50

Un-Satisfied 131 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

145

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 27 Mean Calculations - Over Time Payment (Ot)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 10 - -

CDA 70 30 32 8

IESCO 70 36 20 14 -

KTM 35 - 12 15 8

OGDCL 50 - 22 16 12 -

PCP 50 37 9 4

PTCL 70 10 38 22 -

PTV 50 41 6 3

SNGPL 50 3 21 23 3

ZTBL 50 16 12 22 -

Total (f) 525 3 245 181 96

fXi 15 980 543 192 1730

Variable Mean = = Σ fXi 525 1730525 = 330

146

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Over Time Payment of workers is 330

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for Over Time Payment to worker

On unionsrsquo efforts 3 workers were very satisfied 245 were satisfied and 96

workers un-satisfied while 181 workers were indifferent (Table-27 amp figure 8)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 8 that unions did not exert efforts for overtime payment for

over working is rejected and alternate view is established

Figure-8 - Satisfaction Level of Workers on Over Time Payment

Very Satisfied 3

1Satisfied 245 47

Indifferent 181 34

un-Satisfied 96 18

Very SatisfiedSatisfiedIndifferentun-Satisfied

147

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions Table 28 Mean Calculations - working conditions (Wcon) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 4 22 4 - -

CDA 70 30 28 12

IESCO 70 50 10 10 -

KTM 35 - 30 5 -

OGDCL 50 4 33 10 3 -

PCP 50 39 6 5

PTCL 70 36 24 10 -

PTV 50 39 11

SNGPL 50 3 40 4 3

ZTBL 50 32 14 4 - -

Total (f) 525 43 333 106 43

fXi 215 1332 318 86 1951

Variable Mean = Σ fXi 525 = 1951525 = 372

148

Analysis

The overall mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Working Conditions of workers is 372

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for arrangements of better working conditions for workers

On unionsrsquo efforts 43 workers were very satisfied 333 workers were satisfied

as compared to 43 un-satisfied workers while 106 were indifferent (Table-28 amp Figure

9) It means unions have really exerted efforts for working conditions

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 8 that the unions did not exert efforts for better working

conditions is rejected and alternate view is established

Figure-9 - Satisfaction Level of Workers on Working Conditions

Very Satisfied 43

8

Satisfied 333 64

Indifferent 106 20

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

149

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 29 Mean Calculations- leaves facility (Linc) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 24 6 - -

CDA 70 35 33 2

IESCO 70 - 40 25 5 -

KTM 35 - 10 16 9 -

OGDCL 50 40 10 - -

PCP 50 38 7 5

PTCL 70 36 24 10

PTV 50 38 9 3

SNGPL 50 32 18 -

ZTBL 50 28 14 8 -

Total (f) 525 0 321 162 42

fXi 1284 486 84 1854

Variable Mean = Σ fXi 525 = 1854525 = 353

150

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for increasing annual leaves of workers or

offering resistance against decrease of leaves is 353 which is bigger than 3

(Indifferent Level) showing that unions as a whole have exerted effective efforts for

increase of Leaves of worker

Annual paid leaves for seven organizations are 68 and for IESCO are 73 where

as only for two organizations are 40 This is a reasonable time for rest and enjoyment

On unionsrsquo efforts 321 workers were satisfied as compared to 42 un-satisfied workers

which shows that unions have really exerted efforts for exacting this facility (Table-

29 amp Figure 10)

Management of all the organizations also confirmed that unions have depicted

their intention to resist the decrease of leaves (see tables in appendices F-1 to F-10

column management responses)

So the hypothesis 9 that unions did not exert efforts for leaves increase or

resist against leaves decrease is rejected and alternate view is established

Figure-10 - Satisfaction Level of Workers on Leave Facilities

Very Satisfied 0

0

Satisfied 321 61

Indifferent 162 31

un-Satisfied 42 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

151

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 2 14 14 78

CDA 70 14 50 6 0 - 288

IESCO 70 - 4 46 20 - 194

KTM 35 - 17 10 8 - 114

OGDCL 50 - 27 13 10 - 167

PCP 50 - 5 30 15 - 140

PTCL 70 4 44 22 192

PTV 50 21 24 5 166

SNGPL 50 - 37 8 5 - 182

ZTBL 50 2 18 30 - 122

Total = (f) 525 14 169 213 129

fXi 70 676 639 258 0 1643

Variable Mean = Σ fXi 525 =1643 525 = 313

152

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Post Retirement Benefits (Like pension)

of workers is 313 which is greater than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for post retirement benefits of worker

The satisfied workers are 183 (14 + 169) but unsatisfied workers 129 are also

not less while 213 workers are indifferent which shows that unions need to put more

efforts for this facility (Table-30 amp Figure-11)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

However the hypothesis 10 that the unions did not exert efforts for

postretirement benefits like pension of workers is rejected and alternate view is

established

Figure-11 - Satisfaction Level of Workers on Post Retirement Benefits

Very Satisfied 14

3

Satisfied 169 32

Indifferent 213 40

un-Satisfied 129 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

153

Hypothesis 11 (H11) Unions did not exert efforts for arranging recreation

facilities

Table 31 Mean Calculations -Recreation facilities (Rfac) Satisfaction Level No VS S IND US VUS Σ fXi

Value (Xi) 5 4 3 2 1

Organization

ARL 30 2 10 8 10

CDA 70 58 12

IESCO 70 47 23 -

KTM 35 - 16 10 9

OGDCL 50 18 14 14 04 -

PCP 50 - - 30 20 -

PTCL 70 40 30

PTV 50 10 34 6

SNGPL 50 16 30 2 2 -

ZTBL 50 28 22 -

Total (f) 525 36 80 271 138 -

fXi 180 320 813 276 1589

Variable Mean = = Σ fXi 525 1589525 = 303

154

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Recreational Facilities of workers is

303Which is slightly greater than 3 (Indifferent Level) showing that unions as a

whole have some exerted efforts for Health Facilities of worker

The satisfied workers are 116 (36 + 80 ) but unsatisfied workers 138 while

271 workers are indifferent which shows that unions need to put more efforts for this

facility (Table-31 amp Figure 12) The mean being more than 3 is due to the fact that 36

workers were very satisfied which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except in CDA KTM

PCP and PTCL (see tables in appendices F-1 to F-10 column management responses)

However the hypothesis 11 that the unions did not exert efforts for arranging

recreation facilities is rejected and alternate view is established

Figure-12 - Satisfaction Level of Workers on Recreational Facilities

Very Satisfied 36

7

Satisfied 80 15

Indifferent 271 52

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

155

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 32 Mean Calculations - training opportunities (Top) Satisfaction Level No VS S IND US VUS Σ fXi Values (Xi) 5 4 3 2 1 Organization ARL 30 18 8 4 CDA 70 10 20 40 IESCO 70 22 34 14 - KTM 35 22 13 OGDCL 50 4 19 20 7 - PCP 50 - - 24 26 - PTCL 70 16 40 14 PTV 50 16 24 10 SNGPL 50 - 10 34 6 - ZTBL 50 26 20 4 - Total (f) 525 4 137 246 138 fXi 20 548 738 276 1582

Variable Mean = Σ fXi 525 = 1582525 = 301

156

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Training Opportunities of workers is 301

which is very marginally bigger than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for training opportunities of worker but need to exert

more efforts

The satisfied workers 141 (4 + 137) and unsatisfied workers 138 are almost

equal with 246 indifferent workers showing that unions need to put more efforts for

this facility (Table-32 amp figure 13) The mean being more than 3 is due to the fact that

246 workers were indifferent which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except KTM (see tables in

appendices F-1 to F-10 column management responses)

However the as hypothesis 12 that unions did not exert efforts for arranging

training opportunities for workers is rejected and alternate view is established

Figure-13 - Satisfaction Level of Workers on Training Opportunities

Very Satisfied 4

1 Satisfied 137 26

Indifferent 246 47

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

157

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers

wagessalary difference

Table 33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 6 8 12 4

CDA 70 28 28 14

IESCO 70 - 2 37 31 -

KTM 35 2 7 26

OGDCL 50 5 26 14 5 -

PCP 50 5 37 8

PTCL 70 32 38

PTV 50 23 14 13

SNGPL 50 - 17 28 5

ZTBL 50 2 20 22 6 -

Total (f) 525 13 131 231 150

fXi 65 524 693 300 1582

Variable Mean = Σ fXi 525 =1582 525 = 301

158

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for decreasing workers officers wage salary

gap is 301 which is very marginally greater than 3 (Indifferent Level) showing that

unions as a whole have exerted some efforts for decreasing gap of remunerations

between officers and worker

The satisfied workers 144 (13 + 131) are slightly less than 150 unsatisfied

workers with 231 workers indifferent (Table-33 amp Figure 14) The mean touching to

indifferent level is due to the fact that 13 responses are of very satisfied This demands

that unions need to put more efforts for exacting this facility

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

IESCO KTM and PCP (see tables in appendices F-1 to F-10 column management

responses)

However the hypothesis 13 that unions did not exert efforts for decreasing

workersofficers wagessalary difference is rejected and alternate view is established

Figure-14 - Satisfaction Level of Workers on Decreasin Wage Difference

Very Satisfied 13

2

Satisfied 131 25

Indifferent 231 44

un-Satisfied 150 29

Very SatisfiedSatisfiedIndifferentun-Satisfied

159

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 34 Mean calculations - informing about rights (Ir) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

(ARL) 30 16 12 2

(CDA) 70 54 10 6

(IESCO) 70 49 10 11

KTM 35 20 12 3

(OGDCL) 50 34 12 4

(PCP) 50 20 21 9

(PTCL) 70 18 34 18

PTV 50 30 10 10

(SNGPL) 50 25 14 11

(ZTBL) 50 4 34 7 5

Total (f) 525 4 300 142 79

fXi 20 1200 426 158 1804

Variable Mean = Σ fXi 525 =1804525 = 344

160

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations giving awareness to workers for their rights

is 344 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted efforts for informing worker about their rights as worker

On unionsrsquo efforts 304 (4 + 300) workers were satisfied as compared to 79 un-

satisfied workers which shows that unions have really exerted efforts for exacting this

facility (Table-34 amp Figure 15)

So the hypothesis 14 that unions did not exert efforts for informing workers

about their rights is rejected and alternate view is established

Figure-15 - Satisfaction Level of Workers on Informing About Rights

Very Satisfied 4

1

Satisfied 300 57

Indifferent 142 27

un-Satisfied 79 15

Very SatisfiedSatisfiedIndifferentun-Satisfied

161

Hypothesis 15 (H15) Unions did not exert efforts for workersrsquo education Table 35 Mean calculations - workersrsquo education (We)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 12 14 4

CDA 70 28 34 8

IESCO 70 - 36 24 10 -

KTM 35 12 17 6

OGDCL 50 - 21 19 10 -

PCP 50 - 30 20 -

PTCL 70 19 39 12

PTV 50 33 8 9

SNGPL 50 15 25 10

ZTBL 50 28 18 4

Total (f) 525 234 218 73

fXi 936 654 146 1736

Variable Mean = Σ fXi 525 = 1736525 = 331

162

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for workersrsquo education is 331 which is

bigger than 3 (Indifferent Level) showing that unions as a whole have exerted efforts

for workersrsquo education facilities

On unionsrsquo efforts 234 workers were satisfied as compared to 73 un-satisfied

workers with 218 indifferent responses which shows that unions have really exerted

efforts for exacting this facility (Table-35 amp Figure-16) though there is need of more

efforts

Management of all the organizations also confirmed that unions have been

requesting for making arrangements for workers education (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 15 that unions did not exert efforts for workers education

facilities is rejected and alternate view is established

Figure-16 - Satisfaction Level of Workers on Workers Education

Very Satisfied 0

0Satisfied 234 44

Indifferent 218 42

Un-Satisfied 73 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

163

5311 Combined Mean of All Workers Variables = (Sw)

By using means of the individual variables calculated in tables 21 to 41

Combine Mean has been calculated by arranging this data in Table 42 and using the

Equation

Table 36 Summary of means of workers variables and calculation of combined mean

Variables (to measurement of unionrsquos efforts for workers)

Means of Satisfaction Level of Workers ( i)

Wris 340

Fbft 333

Jsec 379

Td 354

Linc 353

Ot 330

Wcon 372

Hfac 360

Ced 302

Prb 313

Rfac 303

Top 301

We 331

Wdf 301

Ir 344

Total = Σ i 5016

Combined Mean (Sw) = (Workers Satisfaction) 50615 = 334

164

Data from Tables 21 to 35

By putting values of the total second column in the equation

Combine Mean = Σ i N

SW = (Wris + Fbft +Jsec + Td + Hfac + Ced + Ot +Wcon +

+ Linc + Prb + Rfac + Top + Wdf + Ir + We)15

Sw = 501615 = 334 (approximately)

As the Combine Mean is 334 which is greater than 3 the lsquoindifferent levelrsquo so

it is accepted that workers are satisfied with the unionsrsquo efforts and unions are

successful in securing benefits for workers

165

Figure 17a Diagrammatic Presentation of Means of Workers Variables (Bar

Diagram)

(Height of bars indicates mean of variable)

0

1

2

3

4

5

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

Figure 17b Diagrammatic Presentation of Means of Workers Variables (Line Graph)

012345

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

166

532 CHI SQUARE TEST APLICATION

For testing the correctness of Hypotheses H1 to H15 Chi square has also been

applied in tables 37 to 51 on the data of respective variable Expected values (fe) have

been subtracted from (fo) observed values and squared and then divided by expected

values added to each other to obtain calculated value of chi square Then calculated

value is compared with table value If it is greater than table value then it is significant

so hypothesis of respective variable is to be rejected and opposite view is to be

established Observed values for chi square application have been fetched from row

stubbed lsquoTotal (f)rsquo in tables 21 to 35

167

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 37 Chi square calculations Wage rise (Wris)

Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-( χ2)

(fo) 15 284 123 103 - 525

(fe) 13125 13125 13125 13125 - 525

(fo-fe)2 131514 2333256 6806 79806 -

χ2cal =

(fo-fe)2 fe 10296 17777 055 608 28686 28686

(Figures used in this table fetched from row stubbed Total (f) in table 21)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 28686 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

1 that unions did not exert efforts for wage rise of workers is rejected and the

alternate view that unions have exerted efforts for wage rise of workers is established

168

Hypothesis 2 (H2) Unions did not exert efforts for fringe benefits like bonus of workers Table 38 Chi square calculations - Bonus (financial benefits) (f-bft)

Satisfaction Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 15 272 111 127 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1339781 1981056 41006 18062

χ2cal =

(fo-fe)2 fe 10296 15093 312 013 25714 25714

(Figures used in this table fetched from row stubbed Total in table 22)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 25714 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis2 is

rejected and the alternate view that unions did exert efforts for exacting fringe

benefits like bonuses for the workers is established

169

Hypothesis 3(H3) Unions did not exert efforts for Job Security of workers

Table 39 Chi square calculations ndash Job security (Jsec)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 59 338 87 41 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 522006 4274556 195806 814506

χ2cal =

(fo-e)2 fe 3977 32630 1491 6214 44312 44312

(Figures used in this table fetched from row stubbed Total in table 23)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 44312 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis3 that unions did not exert efforts for job security of the workers is reject

and the alternate view that unions did exert efforts for job security of the workers is

established

170

Hypothesis 4 Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 40 Chi square calculation - Time reduction (Td) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) - 324 158 43 - 525

(fe) 175 175 175 525

(fo-fe)2 22201 289 17424

χ2cal =

(fo-fe)2 fe

12686 165 9956 22807 22807

(Figures used in this table fetched from row stubbed Total in table 24)

Significant df = 2 χ2tab at 005 = 599

The calculated value of Chi Square test 22807 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

4 is rejected and the alternate view that unions did exert efforts for decreasing

working hours of the workers is established

171

Hypothesis 5 (H5) Unions did not exert efforts for health facilities

Table 41 Chi square calculations - Health facilities (Hfac)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 28 332 93 72 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1066056 4030056 146306 351056

χ2cal =

(fo-fe)2 fe 8122 30705 1114 2674 42615 42615

(Figures used in this table fetched from row stubbed Total in table 25)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 42615 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

5 that unions did not exert efforts for exacting health facilities for the workers is

rejected and the alternate view is established

172

Hypothesis 6 (H) Unions did not exert efforts for workersrsquo children education facility

Table 42 Chi square calculations - Children education (Ced)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 6 127 261 131 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1568756 18062 1683506 0625

χ2cal =

(fo-fe)2 fe 11952 137 12826 0004 24791 24791

(Figures used in this table fetched from row stubbed Total in table 26)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 24791 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis 6 is

rejected and the alternate view that unions did exert efforts for exacting children

education facilities for the workers is established

173

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 43 Chi square calculations - Over time payment (Ot) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 3 245 181 96 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1644806 1293906 247506 124256

χ2cal =

(fo-fe)2 fe 12531 9858 1885 946 2522 2522

(Figures used in this table fetched from row stubbed Total in table 27)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 2522 is greater than table value of Chi

square 782 at 005 significance level and 3 degree of freedom so the Hypothesis 7

that unions did not exert efforts for overtime payment for over working is rejected and

alternate view is established

174

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions

Table 44 Chi square calculations - working conditions (Wcon)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 43 333 106 43 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 778806 4070306 63756 778806

χ2cal =

(fo-fe)2 fe 5933 31011 485 5933 43362 43362

(Figures used in this table fetched from row stubbed Total in table 28)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi square test 43362 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

8 that unions did not exert efforts for better working conditions is rejected and

alternate view is established

175

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 45 Chi square calculations - Leaves facility (Linc) Satisfaction

Level VS S IND US VUS Total Chi Sq-χ2

(fo) 321 162 42 525

(fe) 175 175 175 525

(Fo-fe)2 21316 169 17689

χ2cal =

(fo-fe)2 fe

12180 096 18108 22384 22384

(Figures used in this table fetched from row stubbed Total in table 32)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 22384 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

9 that unions did not exert efforts for leaves increase or resist against leaves decrease

is rejected and alternate view is established

176

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 46 Chi square calculations - post retirement benefits facility (Prb)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 14 169 213 129 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1374756 142506 668306 506

χ2cal =

(fo-fe)2 fe 10474 1085 5091 003 16653 16653

(Figures used in this table fetched from row stubbed Total in table 33)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 16653 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis10 that the unions did not exert efforts for postretirement benefits like

pension of workers is rejected and alternate view is established

177

Hypothesis 11(H11) Unions did not exert efforts for arranging recreation facilities Table 47 Chi square calculations - Recreation facilities (Rfac) Satisfaction

Level VS S IND US VUS TOTAL Chi Sq-χ2

(fo) 36 80 271 138 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 907256 262656 1953006 4556

χ2cal =

(fo-fe)2 fe 6912 2001 1488 0347 23827 8663

(Figures used in this table fetched from row stubbed Total in table 34)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 23827 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

11 that the unions did not exert efforts for arranging recreation facilities is rejected

and alternate view is established

178

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 48 Chi square calculations - Training facilities (Top) Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-

χ2

fo 4 137 246 138 525

fe 13125 13125 13125 13125 525

(fo-fe)2 161925 33062 1316756 4556

χ2cal =

(fo-fe)2 fe 12337 251 10032 347 22428 22428

(Figures used in this table fetched from row stubbed Total in table 35)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 22428 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

12 that unions did not exert efforts for arranging training opportunities for workers is

rejected and alternate view is established

179

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers wagessalary difference Table 49 Chi square calculationsndashDecreasing workers officers wage salary gap (Wdf)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 13 131 231 150 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1398306 0625 995006 35156

χ2cal =

(fo-fe)2 fe 10653 0004 7581 267 18501 18501

(Figures used in this table fetched from row stubbed Total in table 36)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 18501 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

13 that unions did not exert efforts for decreasing workersofficers wagessalary

difference is rejected and alternate view is established

180

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 50 Chi square calculations - Informing about rights (Ir)

Satisfaction

Level

VS S IND US VUS TOTAL Chi Sq- χ2

(fo) 4 300 142 79 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1619256 2847656 11556 273006

χ2cal =

(fo-fe)2 fe 12337 21696 088 2080 36201 36201

(Figures used in this table fetched from row stubbed Total in table 37)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 36201 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

14 that unions did not exert efforts for informing workers about their rights is rejected

and alternate view is established

181

Hypothesis 15 (H15) Unions did not exert efforts for arranging education facilities for workers

Table 51 Chi square calculations - workersrsquo education (We)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 234 218 73 525

(fe) 175 175 175 525

(Fo-fe)2 3481 1849 10404

χ2cal =

(fo-fe)2 fe

1989 1056 5945 899 899

(Figures used in this table fetched from row stubbed Total in table 38)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 8989 is greater than table value of Chi

square 599 at 005 significance level and 2 degree of freedom so the Hypothesis 15

that unions did not exert efforts for arranging education facilities for workers is

rejected and alternate view that the unions exerted efforts for arranging education

facilities for workers is established

182

533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS

Efforts of unions for benefits and interest of employers have been measured by

Two variables These variables are Productivity or Efficiency increase (Pin)

Enhancement of workplace harmony (Wph) Three tables (table 52 to 54) have been

constructed In table 52 and 53 Means of individual variables are calculated and in

third table combine mean is calculated

First column contains the name of organizations column two contains

response of employersrsquo representative on the variable in the form of satisfaction level

and column three contains the value of the response In the last row all these values of

third columns are added and divided by number of respondents ie 10 to calculate the

variable mean If mean is equal to 3 then aggregately all the respondents are

indifferent and if variables mean is greater than indifferent level ie 3 then employers

are satisfied on unionsrsquo efforts and unions are successful to the extent of this variable

If mean of variable is less then 3 then unions are failed to the extent of this variable

Combined mean of two variables has been calculated in third table 54

Combine mean more than 3 shows satisfaction of management with unionsrsquo

performance and value of combine mean less than 3 indicates that unionsrsquo have not

exerted efforts for employers benefits so unions are not beneficial and value of

combine mean equal to 3 shows that employers is indifferent and unionsrsquo presence is

neither beneficial nor harmful

183

Hypothesis 16 (H16) Unions exerted no efforts for motivating workers to increase productivityefficiency

Table 52 Calculation of mean of management responses for unionsrsquo

efforts for productivity efficiency increase) (Pin)

Organization Name Management Responses

Value of Responses (Xi)

ARL IND 3

CDA IND 3

IESCO S 4

KTM S 4

OGDCL IND 3

PCP IND 3

PTCL IND 3

PTV IND 3

SNGPL IND 3

ZTBL S 4

Total 33

Variable Mean 3210 = 33

Variable Mean = Σ Xi N = 3210 = 33

184

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for increase of productivity or efficiency (by working in better way

with minimum loss and of good quality in minimum possible time) is 33 which is

slightly more than 3 (indifferent level) indicating that unions are exerting slight

efforts

Therefore the hypothesis 16 that unions exerted no efforts for motivating

workers to increase productivity is rejected and alternative view unions exerted efforts

for motivating workers to increase productivity is established

On viewing individually employers of only three organizations are satisfied

and of seven organizations are indifferent So these unions need to put more efforts in

motivating workers for increasing productivity efficiency

Figure-18 - Satisfaction Level of Employers on ProductivityEfficienc Increase

Indifferent 7 70

Satisfied 330

un-Satisfied 0 0

Very Satisfied 0

0Very SatisfiedSatisfiedIndifferentun-Satisfied

185

Hypothesis 17 Unions exerted no efforts for workplace harmony Table 53 Calculation of mean of management responses for workplace harmony

(Wph) Organization Name

Management Response

Values of Responses (Xi)

ARL S 4

CDA S 4

IESCO FS 5

KTM S 4

OGDCL S 4

PCP S 4

PTCL IND 3

PTV S 4

SNGPL S 4

ZTBL S 4

Total 40

Variable Mean = Σ Xi N = 4010 = 4

186

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for creating harmony at workplace is 4 which is more than 3

(indifferent level) Therefore the hypothesis 17 that unions exerted no efforts for

workplace peace and harmony is rejected and alternative view unions exerted efforts

for workplace peace and harmony is established

Viewing individually employer of one organization ie IESCO is fully

satisfied and of eight organizations are satisfied Management of only one

organization ie PTCL is indifferent So union of PTCL needs to put more efforts in

creating peace and harmony at workplace Otherwise over all performance of unions is

satisfactory

Figure-19 - Satisfaction Level of Employers on Work Place Harmony

Satisfied 8 80

Indifferent 1 10

un-Satisfied 0 0

Very Satisfied 1

10

Very SatisfiedSatisfiedIndifferentun-Satisfied

187

Table 54 Calculation of Combined Mean of Management Responses (Se)

Variables (for measurement of

unionsrsquo efforts for Employers)

Means of Satisfaction Level of

Employer ( i)

Organization

Pin 33

Wph 4

Total of Means 73

(Data from calculations of tables 52 amp 53

By putting the values of means of columns in the equation

Combine Mean = Σ i N = Se = (Pin + Wph)2

Se = (33 + 40)2 = 732

Se = 732 = 365

In this analysis PTCL management has lowest level of satisfaction on unionsrsquo

role because union recently called an unsuccessful strike lasting for 13 days against

the government of Pakistanrsquos decision of privatization of the company Performance

of unions of other organizations is satisfied with mean greater than indifferent level

ie 3

As the combined mean of all the variable measuring unions efforts for

developing human resources for the benefit of employer is 365 that is greater than 3

the indifferent level so it is established that unions are working for interest of

employers and they are satisfied with them and unions are successful in satisfying

employers

188

Figure 20a Diagrammatic Presentation of Means of Employers Variables

(Bar Diagram)

012345

Pin Wph Se

(Height of bars indicates mean of variable)

Figure20b Diagrammatic Presentation of Means of Employers Variables

(Line Graph)

0

1

2

3

4

5

Pin Wph Se

189

No Success

Partial Success

Partial Success

Success S e = 365 Sw = 334

Figure 4 Diagrammatic Presentation of success of unions (Success Matrix)

5 1 5 2 5 3 5 4 Sw = 5 Se = 5

Sw = 5 Se = 1

Sw = 4 Se = 1

Sw = 3 Se = 1 Tolerable

Sw = 2 Se = 1

Sw = 1 Se = 1

11 12 13 14 Sw = 1 Se = 5 In the success matrix of diagram 4 satisfaction of workers is represented vertically

and satisfaction of employers is represented horizontally The dark grey portion of the

matrix shows no success or failure zone In this cage both Sw and Se are less than 3

(these are 11 21 31 22 32 or 12 13 ) Two light grey portions are areas of partial

success The upper light grey cage where Sw is greater than 3 showing workers are

satisfied but Se is less than 3 showing employers are unsatisfied While the Lower

light grey portion where Se is greater than 3 showing employers are satisfied but Sw is

less than 3 showing workers are unsatisfied also indicates partial success Joining

point of all four cages is tolerable point where both Sw and Se are 3 White cage

where both Sw and Se are more than 3 is success zone Values of both Sw (334) and

Se (365) are lying in success cage

190

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED WORKERS

To assess the unions role in securing the benefits for workers comparison of

facilities availed by permanent workers and temporary workers working in the same

organization has been made It is to determine whether facilities availed by unions

members are really due to unionsrsquo efforts or just because of government blessings For

this comparison of facilities ie Wage rise Job Security Daily working hours

Working conditions Facilities for children education Health care or medical treatment

facilities Fringe benefits like bonus Other of financial benefits and Yearly paid leaves

for both categories of workers has been made in the tables 55 and 56 Table 55 is for

facilities availed by Temporary workers and table 56 is for facilities by permanent

workers

Table 55 Facilities of temporary workers (Not Union Members)

Org Name

Wris Jsec Weekly Hours

Wcon Child education

Health facilities

Fringebft Bonus

Misc-All

Yearly Leaves

ARL Little No 46 Right No No No No 32

CDA Little No 39 Right No Yes Yes Yes 48

IESCO Little No 375 Right No No No No 22

KTM Little No 48 Right No Yes No No 18

OGDCL Little No 385 Right No Yes Yes No 40

PCP - - - - - - - - -

PTCL Little No 41 Right No No No No 36

PTV Little No 365 Right No Yes Yes No 21

SNGPL Little No 39 Right No No No No No

ZTBL Little No 39 Right No No No No No

No temporary worker in the organization

191

Table 56 Facilities of Permanent Workers (Union Members)

Org Name

Wris

Jsec Weekly Hours

Wcon Child educati

on

Health facilities

Fringebft

Bonus

Misc-All

Yearly Leaves

ARL 18 Yes 40 Right Little Yes 4+ Yes 29-40

CDA 20 Yes 39 Right Little Yes 2 Yes 68

IESCO 15 Yes 375 Right Little Yes No Yes 73

KTM - Yes 48 Right Little Yes 1 Yes 40

OGDCL 20 Yes 385 Right Little Yes 2+ Yes 68

PCP 15 Yes 40 Right Little Yes No Yes 68

PTCL 35 Yes 41 Right Little Yes 1 Yes 68

PTV 25 Yes 365 Right Little Yes 1 Yes 68

SNGPL 15 Yes 39 Right Little Yes 2 Yes 68

ZTBL 15 Yes 39 Right Little Yes 2 Yes 68

Wage Rise Permanent unionized workers are availing increase in wages in every

charter of demand that is from 15 to 35 percent whereas temporary non unionized

workers receive very little wage rise Wage rise sometimes received by permanent

workers announced by government in annual budget is besides this Where as

temporary workers are also deprived from this blessing as mater of right

Job Security Temporary workers do not have job security while permanent workers

have full job security and when 750 staff members ZTBL were forcefully retired in

December 2005 their union went on strike which lasted for 33 days and management

had to reinstate them

Daily Working Hours Working hours are same for both categories of workers as

usually time is fixed by government and not demanded in charter of demand

192

Working Conditions Working conditions are same for both categories of workers

because both work in the same premises

Children Education Facilities Temporary workers have no employerrsquos provided

facility at all for children education whereas permanent workers are having it though

condition for them is not very satisfactory

Health Facilities All the permanent workers are enjoying health facilities usually

for self and for family but temporary workers in four organizations avail it for self

only

Financial Benefits Permanent workers of 8 organizations are enjoying bonus

facilities whereas temporary workers only in three organizations are enjoying it and

workers commented that this is also because of unions efforts

Miscellaneous Allowances Permanent workers of all the organizations are enjoying

any of small financial allowance or facility but temporary workers of only one

organization CDA are enjoying it

Yearly Paid Leaves Permanent workers of all the organizations are enjoying yearly

leaves facility much more than their temporary colleagues In majority of

organizations leaves facilities are 68 (20 casual leaves and 48 privileged earn leaves)

Privilege leaves are encashable at the time of retirement Temporary workers in some

organizations have no leave facility and if they go on leave it is treated as with out

pay As in SNGPL and ZTBL and situation in other organizations is also poor

It is revealed from comparison of both the tables that these facilities are

enjoyed by majority of unionized workers while non-unionized workers are not

availing these facilities if these facilities are enjoyed by non-unionized workers in any

organization beneficiaries admitted that this is because of unionsrsquo efforts

193

56 WORKERS RESPONSES FOR QUESTIONS ABOUT ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS STATUS AS COMPARED TO PAST

These all points have been assessed by asking questions given in the table 57

and calculating percentage of the responses

Table 57 Essentiality inter union relations and unions status as compared to past

QNO18 Is union Essential in your organization

QNO 19 Are inter union relations good in your organization

QNO 20 Are unions of today weaker than unions in the past

Number of Number of

Responses

Number of

Responses

Number of

Responses

Org Name Res Unions in Org

Yes No Yes No Yes No

ARL 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

AGE 100 96 4 14 86 81 19

194

Ninety six percent workers are favoring the need of unions for workers in the

organizations and commented that unions provide job security and exert efforts for

financial benefits and also provide courage and lessens the fear of employers

However they stressed on the need of exertion of more efforts by unions for exacting

benefits for workers Few workers also groused for unionsrsquo partiality and inter union

rivalry Only 4 percent replied that unionsrsquo existence or non-existence makes no

benefit or harm to the workers

Eighty six percent workers replied that unions remain in conflict with each

other where unions in the organization are more than one This inter union rivalry

weakened their power and damaged their efforts for securing benefits for workers

Eighty one percent workers commented that unions of present day are

comparatively weaker than unions of a decade before and during interview

commented that unions in the democratic regime work well while in non-democratic

regime they become weak and less effective

CHAPTER 6

DISCUSSION CONCLUSION AND RECOMMENDATIONS

61 DISCUSSION

In the light of analysis of data made in chapter four the role of labor unions in

working for benefits of workers and employers is discussed here for arriving at a

conclusion This role is discussed in two ways ie organization-wise performance of

every union and variable-wise collective performance of all unions

611 Organization-Wise Performance of Unions

Analysis of unionsrsquo performance in context of efforts for securing benefits for

workers and protecting their interest has been made in tables 1 to 10 and of unionsrsquo

performance in context of efforts for protecting interest of employer has been made in

tables 11 to 20 Employerrsquos endorsement on unionsrsquo performance is revealed in

columns of employer responses by Y or N in tables in appendices F-1 to F-10

Performance of the unions is discussed below in the light of data analysis of

previous chapter

6111 ARL Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level organizational mean 356 more than 3 It means

majority of workers are satisfied and union is successful Employer has also confirmed

their efforts

In employerrsquos context the performance of union is satisfactory for establishing

work place peace and harmony but at indifferent level in productivity or performance

increase However as a whole performance of ARL union is satisfactory with 35 value

196

of mean of satisfaction level of all the variables of employer Majority of workers

confirmed exertion of unionrsquos efforts for employer Its means union is successful

6112 CDA Union

In workers context the performance of union is satisfactory with satisfaction

level mean 336 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for Time Decrease

Leave increase Recreation facilities and workers education facilities

In employerrsquos context the performance of union is satisfactory for establishing

work place harmony while at indifferent level in Productivity or performance increase

but as a whole performance of CDA union is satisfactory with 35 value of mean of

satisfaction level of all the employerrsquos variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

6113 IESCO Union

In workers context the performance of union is satisfactory with satisfaction

level mean 312 more than 3 As the score of union is hardly above the indifferent

level and union needs to put more efforts Employer has also confirmed their efforts

except for financial benefits workersrsquo officersrsquo wage difference leave increase and

Workersrsquo education

In employerrsquos context the performance of union is satisfactory for

improvement of Efficiency of workers and establishing work place harmony as a

whole performance of IESCO union is satisfactory with 450 value of mean of

satisfaction level of all the variables Majority of workers confirmed exertion of

unionrsquos efforts for employer It means employer is satisfied and union is successful

6114 KTM Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level weighted mean 322 more than 3 Employer has

197

also confirmed their efforts except for wage rise workers officers wage difference

time decrease leave increase overtime payment recreation facilities and training

opportunities Wages in textile sector are fixed by Wage Board where union union has

no representation so wages are not fixed properly Unionrsquos efforts in social services

health facilities were acknowledged by workers

In employerrsquos context the performance of union is satisfactory for every

variable with 400 value of mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6115 OGDC Union

In workers context the performance of union is satisfactory with satisfaction

level weighted mean 361 more than 3 It means majority of workers are satisfied and

union is successful Employer has also confirmed their efforts

In employersrsquo context the performance of union is satisfactory as a whole with

350 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

6116 PCP Union

In workers context the performance of union is satisfactory with satisfaction

level mean 332 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for workers officers wage

difference education of workers children recreation facilities training opportunities

and workersrsquo education

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

198

6117 PTCL Union

In workers context the performance of union in exerting efforts for securing

benefits for workers is hardly satisfactory with satisfaction level mean 302 which is

negligibly more than 3 It means satisfactory and unsatisfactory workers are almost

equal and union is marginally successful and needs improvement in efforts Employer

has confirmed their efforts except for children education post retirement benefits and

recreation facilities

In employerrsquos context the performance of union is 3 only equivalent to

indifference level as value of weighted mean of satisfaction level of all the variables

A marginal majority of workers confirmed exertion of unionrsquos efforts for employer It

means employer is indifference with unionrsquos performance and PTCL union needs

much improvement in this area

6118 PTV Union

In workers context the performance of union is satisfactory with satisfaction

level mean 350 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for recreation facilities

In employerrsquos context the performance of union is satisfactory as a whole with

350 value of weighted mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6119 SNGPL Union

In workers context the performance of union for securing benefits for workers

is satisfactory with satisfaction level mean 354 more than 3 It means majority of

workers are satisfied and union is successful Employer has also confirmed their

efforts except for time decrease and leaves increase

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

199

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

61110 ZTBL Union

In workers context the performance of union is satisfactory with satisfaction

level mean 345 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts

In employerrsquos context the performance of union is satisfactory for all the

variables and as a whole performance of ZTBL union is satisfactory with 400 value of

weighted mean of satisfaction level of all the variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

612 Variable-Wise Performance of Unions

How unions have been exerting efforts for workers benefits has been enquired

from workers and responses of workers analyzed by obtaining their weighted

lsquoarithmetic meanrsquo in tables 21 to 35 and by applying lsquochi squarersquo in tables 37 to 51

Because one point of the lsquoExisting Problemrsquo was that unionsrsquo membership is declining

and it was assumed that this might be because unions are not exerting efforts for

securing benefits or protecting interest of workers

Similarly how unions have been exerting efforts for employerrsquos interest have

been enquired from employers and analyzed their responses by obtaining their

arithmetic mean in tables 52 and 53 Because other point of the lsquoExisting Problemrsquo

was that unions only talk about workers rights and ignore their obligations are

responsible for low productivity and it was assumed that it might be because unions

are not exerting efforts for exhorting workers for taking care of employersrsquo interest

200

6121 Workers relating variables

Wage Rise Over all sample mean of the satisfaction level of workersrsquo responses is

340 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for wage rise

Efforts of unions for wage rise can be estimated from this fact that at time of survey

(December 2006) minimum wage was Rupees 4000 but more than 324952

workers were earning wages between Rupees 5000 and 10000 and more than 4952

between 10000 and 20000 and 118 percent were getting wages even more than rupees

20000 (Appendix C-3) Rise in wages was 15 to 35 except of KTM (see

Appendix C-1) This is really an achievement at the part of labor unions

Fringe Benefits Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 333 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

securing fringe benefits of workers Except PCP workers of all other organizations are

getting bonuses and in some organizations bonuses are two or more ARL paid 5 and

KTM has paid 4 bonuses in previous charter (Appendix C-1) ARL KTM and

OGDCL pay 5 percent of their profit to workers and KTM besides this also make

payment to social security and 5 percent of workers salary to Employees Old Age

Benefit department (Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Job Security Over all sample Mean of the Satisfaction Level of workersrsquo responses is

379 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for Job Security

of workers Employees of all the organizations under study are enjoying job security

due to unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts

of unions for job security only 41 workers were unsatisfied (Table23)

Time Reduction Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 354 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

reduction in daily duty hours or resisting the increase of working hours by employer

201

Only one organization KTM has 48 working hours per week at the rate of 8 hours per

day Two organizations ARL and PCP have 40 working hours per week and other

seven organizations have weekly working hours less than 40 (Appendix C-2) This

time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation On unionsrsquo efforts for time decrease

324 respondents expressed satisfaction and only 43 workers expresses un-satisfaction

(Table-24)

Health Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 360 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

Health facilities for workers All the organizations are providing medical treatment

facilities to their workers (Appendix C-2) and 360 workers expressed their satisfaction

as compared to 72 un-satisfied workers (Table-25)

Children Education Over all sample Mean of the Satisfaction Level of workersrsquo

response is 302 which is minutely more than indifferent level (ie 3) Chi square test

for this is significant resulting that unions as a whole have been exerting efforts for

children education facilities for workers but performance of unions of five

organizations is not satisfactory and they need to improve their efforts in this regard

The satisfied workers 133 and unsatisfied workers 131 are almost equal with 261

indifferent workers on this facility which shows that unions need to put more efforts

for this facility (Table-26)

Over Time Payment Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 330 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

payment of overtime if workers work more than duty hours On unionsrsquo efforts 248

were satisfied as compared to 96 workers while 181 workers were indifferent (Table-

27)

Working Conditions Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 372 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for better

202

working conditions On unionsrsquo efforts 376 workers were satisfied as compared to 43

un-satisfied workers (Table-28) It means unions have really exerted efforts for

working conditions

Leave Facility Over all sample Mean of the Satisfaction Level of workersrsquo responses

is 353 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for increasing

yearly leaves or resisting against the decrease of yearly leaves of workers Annual paid

leaves for seven organizations are 68 and for IESCO are 73 where as only for two

organizations are 40 This is a reasonable time for rest and enjoyment On unionsrsquo

efforts 321 workers were satisfied as compared to 42 un-satisfied workers which

shows that unions have really exerted efforts for exacting this facility (Table-29)

Post Retirement benefits (Pension) Over all sample Mean of the Satisfaction Level

of workersrsquo responses is 313 which is more than indifferent level (ie 3) Chi square

test for this is also significant resulting that unions as a whole have been exerting

efforts for Post retirement benefits for workers The Mean of satisfaction level of

workers for unionsrsquo efforts for this variable is hardly more than 3 so unions need to

improve their efforts in this regard The satisfied workers are 183 but unsatisfied

workers 129 are also not less while 213 workers are indifferent which shows that

unions need to put more efforts for this facility (Table-30)

Recreational Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 303 which is hardly more than indifferent level (ie 3) Chi square test

for this is also significant resulting that unions as a whole have been exerting efforts

for recreational facilities The Mean of satisfaction level of workers for unionsrsquo efforts

for this variable is hardly more than 3 so unions need to improve their efforts in this

regard The satisfied workers are 116 but unsatisfied workers 138 while 271 workers

are indifferent which shows that unions need to put more efforts for this facility

(Table-31) The mean being more than 3 is due to the fact that 36 workers were very

satisfied which put more weight in satisfaction side

Training Opportunities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 301 which is hardly more than indifferent level (ie 3) Chi square test

203

for this is resulting that unions as a whole have been exerting efforts for training

opportunities for workers The Mean of satisfaction level of workers for unionsrsquo

efforts for this variable is hardly more than 3 so unions need to improve their efforts in

this regard The satisfied workers 141 and unsatisfied workers 138 are almost equal

with 246 indifferent workers showing that unions need to put more efforts for this

facility (Table-32) The mean being more than 3 is due to the fact that 246 workers

were indifferent which put more weight in satisfaction side

Decreasing Workers Officers Wage gap Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 301 which is hardly more than indifferent level (ie

3) Chi square test for this is also significant resulting that unions as a whole have

been exerting efforts for decreasing gap of workers and officersrsquo wages The Mean of

satisfaction level of workers for unionsrsquo efforts for this variable is hardly more than 3

so unions need to improve their efforts in this regard The satisfied workers 144 are

slightly less than 150 unsatisfied workers with 231 workers indifferent (Table-33)

The mean touching to indifferent level is due to the fact that 13 responses are of very

satisfied This demands that unions need to put more efforts for exacting this facility

Information (Awareness) about Rights Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 344 which is more than indifferent level (ie 3) Chi

square test for this is also significant proving that unions as a whole have been

exerting efforts for awareness of workers about their rights On unionsrsquo efforts 304

workers were satisfied as compared to 79 un-satisfied workers which shows that

unions have really exerted efforts for exacting this facility (Table-34)

Workersrsquo Education Collective Mean of the Satisfaction Level of workers

responsesrsquo is 331 which is more than indifferent level (ie 3) Chi Square test for this

is also significant proving that unions as a whole have been exerting efforts for

arranging workers education On unionsrsquo efforts 234 workers were satisfied as

compared to 73 un-satisfied workers with 218 indifferent responses which shows that

unions have really exerted efforts for exacting this facility (Table-35) though there is

need of more efforts

204

The Combined Mean of satisfaction level of workers on efforts of unions for

securing benefits for them or protecting their rights is 334 (SW = 334) and Chi square

tests for all variables are also significant acknowledging the exertion of unionsrsquo efforts

for workersrsquo benefits

Hypotheses from H1 to H15 for all the variables have been rejected and

alternate view has been established This proves that unions as a whole have satisfied

their workers and they are successful in this respect

6122 Employer relating variables

Productivity Increase or Efficiency Improvement Over all sample Mean of the

Satisfaction Level of employersrsquo responses is 330 which is more than indifferent level

(ie 3) proving that unions as a whole have been exerting efforts by exhorting

workers for productivity increase performance or efficiency improvement of the

workers of the organizations Except employer of IESCO KTM and ZTBL employers

of other organizations are indifferent with union performance So these unions need to

improve the efforts in this respect

Work Place Harmony Over all sample Mean of the Satisfaction Level of employersrsquo

responses is 400 which is more than indifferent level (ie 3) proving that unions as a

whole have been exerting efforts for improvement of workplace peace and harmony of

the organization Only the management of PTCL was indifferent with union

performance So this union needs to improve the efforts in this respect

The Combined Mean of satisfaction level of employers on efforts of unions for

securing benefits for them is 365 (Se = 365 More than 50 percent workers also

confirmed that unions have been exerting efforts by exhorting and motivating them for

improving performance (increase of productivity and efficiency) and workplace

harmony It has also been confirmed by workers (see YES responses of respective

variables in column 2 of table in appendices F-1 to F10) The Hypotheses 16 and 17

have been rejected This proves that unions as a whole have satisfied the employers

and this is success of unions

205

613 Comparison with Non-Unionized Workers

All the benefits secured by unions for their workers were not enjoyed by

temporary workers (comparison of facilities in tables 55 amp 56) and if they are availing

a facility or favor they admitted that it is because of unions struggle for them such as

medical treatment or bonus facility in some organizations

Besides this ninety six percent of workers replied that unions are necessary for

organizations for watching the interest of workers and obtaining benefits for them

(Question 18 of the questionnaire 2 and table 57)

However unions have some weakness at their parts and unions could not play a

beneficial role in obtaining some facilities such as

1 Education facilities for the children of workers in the form of Education

allowance Scholarships or establishment of quality schools Mean of

satisfaction of workers on unionsrsquo struggle for this facility is 302 which is

marginally above the required level and unions need much to do in this regard

2 Post retirement benefits amp Pension Mean of satisfaction of workers on unionsrsquo

struggle for this facility is 313 which is slightly above the required level

showing that satisfaction level mean is not good and unions need to put more

efforts in this respect

3 Recreation facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility is 303 which is marginally above the required level and unions are

required to exert more efforts for this

4 Training facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility was 301 which is poorly above the required level Training is of vital

importance for HRD so unions need to put more efforts for this

5 In struggle for decreasing officers workers wage gap the Mean of satisfaction

of workers on unionsrsquo struggle for this facility is 301 which is marginally

above the required level and requires more struggle

206

Unions no doubt as a whole were marginally successful in arranging four out

of fifteen facilities ie Education facilities for children of workers Recreation

facilities Training opportunities and Decreasing gap between officers salaries and

workers wages even though few unions were successful in securing these facilities as

well but unions collectively remained very successful in wining other eleven facilities

and as a whole the mean of all fifteen facilities is 334 Values of Chi Squires of all the

variables were significant compelling to accept alternate hypothesis which is other

name of significant unionsrsquo role for exerting efforts to secure workers benefits and

playing a positive role in HRD It means unions did arrange many facilities for

workers and when it is compared with temporary workers who were not getting these

facilities and benefits and if they could avail some benefits even these are because of

unionsrsquo efforts or unionsrsquo Therefore Declining in membership is not because of

unionsrsquo failure so causes of unionsrsquo membership decline are to be sought somewhere

else

Unionsrsquo role for serving the purpose of employers is also very significant as

the combine mean of all variable showing employers interest is 365 above the union

tolerable level of 300 So unions are playing a positive role for workers benefits as

well as for employers benefit and have built positive industrial relations

Ninety six percent workers commented that unions are necessary for them it is

to be admitted that unions are necessary for organizations However 86 workers

expressed their unhappiness on inter union rivalry rendering them weak because 81

workers were of the opinion that present unions became weaker than unions in the past

decade so they should get rid of this weakening vice

As a consequence of information obtained as responses from workers and

management of the sampled organizations and above detailed discussion the opinion

that was developed in chapter one (in the paragraph of Existing Problem) ie cause of

membership decline might be unions are not exerting efforts for securing facilities

and benefits for workers and the allegation that unions only talk about workers rights

and ignore responsibilities and largely responsible for low productivity now has

changed to new opinion that unions

207

1 Exert efforts for securing benefit for their workers

2 Do talk about workersrsquo rights but do not ignore their obligations

3 Motivate the workers for increase of productivity efficiency as acknowledged

by management with satisfaction level mean 32

4 Do struggle to improve work place harmony (managementsrsquo mean of

satisfaction level is 40) As they try to motivate workers to improve work

place harmony so they do not interfere in the administration and smooth

working at the workplace

Analysis of data and discussion also gave answers of research questions

62 ANSWERS OF RESEARCH QUESTIONS

1 To much extent the unions in Pakistan are effective in securing benefits and

facilities for workers like

i- Rise in wages salaries ranging from15 to 35 with satisfaction level

mean 34

ii- Fringe benefits such as bonus with satisfaction level mean 33

iii- Providing job security with satisfaction level mean 379

iv- Relief in working hours if not successful in time reduction but successful

in resisting increase of working hours with satisfaction level mean 354

v- Successful in procuring health facilities for workers with satisfaction

level mean of 360

vi- played marginal role in procuring educational facilities for children of

workers and the mean value of workers satisfaction on their struggle is

302 Unions need to improve their efforts in this respect

208

vii- Successful in procuring overtime facility with satisfaction level mean

330

viii- Successful in arranging good working conditions with workers

satisfaction level mean 372

ix- If not successful in Leaves increase but successful in resisting decrease of

leaves The satisfaction level of workers is 353

x- As whole slightly successful in procuring post retirement benefits for

their workers with workers satisfaction level mean of 313 and need to

put more efforts

xi- As a whole marginally successful in procuring recreational facilities for

their workers with workers satisfaction level mean of 303 Unions need

to exert more efforts

xii- As a whole marginally successful in procuring training opportunities for

their workers with workers satisfaction level mean of 301 Unions need

to exert more efforts

xiii- As whole were marginally successful in decreasing gap of workersrsquo

wages and officersrsquo salaries and workers satisfaction level mean is 301

Unions need to exert more efforts

xiv- Playing satisfactory role in giving the workers awareness about their

rights with workers satisfaction level mean of 344

xv- Unions also played satisfactory role in affording education facilities for

workers with satisfaction level mean 331

2- To much extent the unions in Pakistan are effective in protecting employersrsquo

interests by

i) Increasing productivity or improving efficiency of workers with

employersrsquo satisfaction level mean of 330

209

ii) Improving harmony at workplace with employersrsquo satisfaction level

mean of 400

63 CONCLUSION

By viewing results of data analysis and detailed discussions it is found that

unions under study have been proved successful in securing benefits for workers

which is apparent from satisfaction level of the workers with numeric value 334 at 5

point Likert scale Similarly it is also found that unions under study have exerted

efforts in protecting interest of employers which is apparent from satisfaction level of

the employers with numeric value of 365 at the same scale Though the performance

might have been very satisfactory if these averages were either 5 (which is ideal and

highest level of satisfaction) or near to five These are overall average result because

performance of some unions for some variables is not satisfactory Particularly

performance of unions in securing benefits like lsquochildren educationrsquo lsquorecreation

facilitiesrsquo lsquotraining opportunitiesrsquo and decreasing difference of remunerations (wages

and salaries) of workers and officers is not very appreciable and needs more efforts to

be done by unions As the scale for success is means of satisfaction levels more than

3 and both these combine means are greater than 3 so unionsrsquo overall performance is

satisfactory It has further been found that workers deem that presence of unions in the

organization is necessary which they expressed with 96 percent majority and inter

unions relations are needed to be improved because 86 percent workers opined that

inter union relations are not good Further more according to IRO 2002 work council

comprising representatives of both management and workers is necessary but

presently out of ten organizations studied work council exists only in three

organizations which is 30 percent of sample and unions are required to exert efforts to

establish work council in rest of 70 percent organizations

In the light of above lines it is concluded that Null Hypothesis is rejected and

alternate hypothesis is proved right that the unions are beneficial bodies for

organizations and ultimately for Human Resource Development Although there is

210

room for improvement in exerting efforts for securing benefits for workers as well as

for protecting employersrsquo interest and improvement of their inter unions relations

64 SUGGESTIONS AND RECOMMENDATIONS

Unions no doubt are playing a positive role in industrial relations for HRD

being successful in exacting benefits and facilities from employers for their workers

and are also protecting interests of employers by stressing workers to increase

productivity improve discipline enhancing workplace peace and harmony and

keeping good attitude with employer or management But still there are weak areas

where more efforts are needed so they should

1- Exert efforts to exact better facilities for education of workersrsquo children

2- Exert efforts to arrange training opportunities for workers to build their

skill which will make them more productive workers for the

organization and also cause to increase their remuneration

3- Exert efforts to arrange recreational facilities for workers Where these

facilities are available need improvement and where these are not

available are needed to be demanded by respective unions and arranged

by managementemployers in the form of Recreation allowances

Entertainment allowance Sports clubs Picnic parties etc

4- Unions should arrange training for office bearers from some agency to

have better know how of handling labor affairs and workersrsquo problems

5- When overall performance of unions is viewed unions claim the exertion

of efforts for every benefit (appendices F-1 to F-10 column 9) whereas

mean value of satisfaction level of workers is 34 So unions should

improve by exerting more efforts so that workers may be more satisfied

6- When overall performance of unions is viewed unions claim for exerting

efforts for benefits of employers (column 9 of tables in appendices F-1 to

F-10) whereas mean value of satisfaction level of employers is 365

211

Unions should improve by exerting more efforts so that satisfaction level

of employers may be very satisfied

7- Eighty six percent workers commented that intra organizational unions

are rivals to each other So unions should cooperate to each other if

unions are more than one in the organization Their rivalry harms them

and also to workers cause

8- Unions of today are weaker than unions a decade ago No doubt one

reason as workers told during interviews for this is non-democratic

regime but inter unions rivalry is also a reason for this so unions should

co-operate to each other in struggle for workers cause

9- Office bearers of four unions were not trained by any agency as unionists

to handle unionsrsquo matters Therefore Ministry of Labor amp man Power

should arrange training through any agency like (ILO NILAT) so that

they may be proved better unionist

10- There are Work Councils in only three organizations where as it is a legal

obligation according to section 24 of IRO 2002 Therefore unions should

demand and Government of Pakistan should arrange to form Work

Councils for prompt solution of workers problems

11- Unions sign charter of demand but intervals are different either 2 or

3years and of CDA union are not regular Unions and Employers should

sign charter of demand with regular intervals and this interval should be

two years

212

65 SUGGESTIONS FOR FURTHER RESEARCH

It is neither necessary nor easy that a research can determine causes of all the

problems or can explore all the aspects of a problem or can seek the solutions of a

problem for ever So any research can not be a final or comprehensive and there is

always need to explore better solutions of a problem or other facets of any discovery

Therefore researcher feels and admits that much work is to be done in presently

researched area In this regard for further researchers it is suggested to

1- Determine the causes of declining membership of labor unions in Pakistan

particularly in private sector after privatization

2- Determine the role of labor unions in politics of the country and in

movement of freedom of Pakistan

3- Explore the role of legislation and labor judiciary in providing relief to

labor unions or employers in the matter of conflicts

4- Enquire the social role of labor unions in solving social problems of

workers beyond collective bargaining

5- Estimate the role of labor unions in smaller industries or establishments in

solving the problems of workers by securing financial and non financial

benefits for workers

6- Search the affects of privatizations on the strength and activities of unions

in Pakistan

7- Explore the affects of globalization on the unionization unionsrsquo activities

and workers

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Ahmed M (2004) Instructional behavior of Principals of Government Colleges for

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Aidt T and Tzannatos Z (2001) Unions and Collective Bargaining Economic Effects

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Aleem I (2004) Problems and Prospects of Higher Education in Pakistanrdquo Doctoral

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Anyemedu K (2002) Trade Union responses to globalization case study on Ghana in

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Ash M and Seago J A (2004) The Effect of Registered Nurses Unions on Heart-

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Aslam N (1982) Wages Employment and Labour Prductivity in the Manufacturing

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Bacon D (2005) Labor Needs a Radical Visionrdquo Monthly Review June 2005

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Belman D L and Monaco K A (2001) The Effects of Deregulation De

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Bernard E (1998) Why Unions Matter Why Full Employment Matters to Unions

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Bernhardt A Dresser L and Rogers J (2002) Taking the High Road in Milwaukee

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Blanchflower D G and Bryson A (2002) Changes over Time in Union Relative

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Brohawn D K (nd) Justice-Based Management A Framework for Equity and

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Bryson A (2001) Union Effects on Managerial and Employee Perceptions of

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Buchmueller T C DiNardo J and Valletta R G (1999) Union Effects on Health

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Buchmueller TC DiNardo J E and Valletta RG (2001) A Submerging Labor

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Carty V (2003) New Social Movements and the Struggle for Workersrsquo Rights in the

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Cleveland G Gunderson M and Hyatt D (2003) Union Effects in Low-Wage

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December 07 2005 from httpwwwiloorgpublic english dialogue

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httpwwwekohistsusedokumentpdfsomkjwjopdf

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ebbinghaus02pdf

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219

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Ghayur S (1996-b) Trade Unions Democracy and Development in Pakistan Pakistan

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1975

220

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ftprepecizaorgRePEcDiscussionpaperdp795pdf

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221

Hyman R (1999) An Emerging Agenda for Trade Unionsrdquo International Institute for

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ILO (2005) The role of trade unions in the global economy and the fight against

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Inoue S (1999) Japanese trade unions and their future Opportunities and challenges

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222

Kang Changhui (2003) ldquoUnion Wage Effect New Evidence from Matched Employee

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htm

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Lee J Moh Y and Kim D (2001) ldquoDo Unions Inhibit Labor Flexibility Lessons

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223

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224

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225

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htm

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226

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227

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96html

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httpenwikipediaorgwikiLabor_and_industrial_relations Wikipedia-b

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228

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Yates M D (2001) The ldquoNewrdquo Economy and the Labor Movementrdquo Monthly

Review April 2001 Retrieved December 12 2006 from httpwww

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Zutavern J (2005) Whats left for unions to trade Sources of labour union influence

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wwwcevipofmsh-parisfrrencontres colloq palier cleggYR_papers

zutavern pdf

229

APPINDICES

Appendix A-1

Workers by Designation of ARL

Designation Number Of Workers Interviewed

Supervisor 1

Driver 4

Photographer 1

Personal Assistant 1

Petrol Pump Operator 2

Sign Board Writer 1

Senior Fitter 3

Senior Gas Fitter 2

Fitter 4

Pump Operator 4

Plant Operator 7

Total 30

230

Appendix A-2

Workers by Designation of CDA

Designation No of Workers Interviewed

Helper 10

Firemen 10

Cook 2

Work Supervisor 1

Beldar 8

Mali (Gardner) 3

Guage Reader 1

Frash (Sweepers) 5

Security Guard 5

Mate 4

Electrician 2

UpperLower Div Clerk 8

Assistant 2

Forest Guard 4

Driver 2

Telephone Operator 1

Sub Engineer 1

Draftsman 1

Total 70

231

Appendix A-3

Workers by Designation of IESCO

Designation No of Workers

Interviewed

Assistant Sub Station Attendant 8

Security Guard 2

Assistant Line Man amp Line Man 19

Computer Operator 2

Meter Reader 4

Driver 2

Line Superintendent 4

Assistant Foreman 2

Sub Station Operator 8

Guard 2

Commercial Assistant 4

Upper Division Clerk 2

Naib Qasid 8

Draftsman 1

Safety Inspector 2

Total 70

232

Appendix A-4

Workers by Designation KTM

Designation No of Workers

Interviewed

Assistant Operator 2

Checker 2

Assistant Fitter 2

4-C- Sider 2

Pifcer 2

8-C-Sider 4

Electritian 2

Power House Operator 1

Ring Operator 10

Plant Operator 2

Helper 6

Total 35

233

Appendix A-5

Workers by Designation of OGDCL

Designation No of Workers Interviewed

Helper 15

Driver 4

Lower Division Clerk 4

Lift Operator 2

Engine Driver 4

Auto Electrician 1

Dispatcher 4

Supervisor 2

Store Assistant 2

Admin Assistant 4

Procurement Assistant 4

Naib Qasid 4

Total 50

234

Appendix A-6

Workers by Designation of PCP

Designation No of Workers Interviewed

Assistant 2

Store Keeper 2

Computer Operator 6

Proof Reader 3

Copy Holder 4

Steno Grapher 2

Typist 4

Machine Man 7

Lower Division Clerk 5

Upper Division Clerk 5

Security Guard 4

Naib Qasid 6

Total 50

235

Appendix A-7

Workers by Designation PTCL

Designation No of Workers Interviewed

Technician 14

Accounts Clerk 8

UDCLDC 8

Wireman 2

Lineman 15

Key Punch Operator (KPO) 8

Assistant 3

Naib Qasid 6

Walk Messenger 2

Plumber 2

Teleprinter Printer 2

Total 70

236

Appendix A-8

Workers by Designation PTV

Designation No of Workers Interviewed

Store Assistant 4

Driver 4

Electrician 5

Admin Assistant 4

Accounts Assistant 4

Producer 3

Publishing Machine Operator 2

Typist 4

Dispatch Rider 4

Stenographer 2

Camera Man 4

Sanitary Worker 4

Naib Qasid 6

Total 50

237

Appendix A-9

Workers by Designation of SNGPL

Designation No of Workers Interviewed

Associate Engineer 2

Supervisor Admin Cash Billing Revision

Sales Fittier

12

Typist 3

Record Keeper 3

Drivers 4

Meter Mechanic 4

Fitter 4

UDC LDC 4

Meter Readers 6

Helpers 6

Tracers 2

Total 50

238

Appendix A-10

Workers by Designation of ZTBL

Designation No of Workers Interviewed

Naib Qasid 14

Assistant 18

Cashier 4

Typist 6

StenographersSecretary 6

TelephoneOperator 2

Total 50

239

Appendix A-11

Representatives of Unions and Employers Interviewed

Organization Employersrsquo

Representative

Unionsrsquo

Representative

ARL Manager Human Resource General Secretary

CDA Deputy Director

Administration amp Labor

President

IESCO Manager Human Resource General Secretary

KTM Manager Human Resource General Secretary

OGDCL Manager Human Resource General Secretary

PCP Manager Human Resource President

PTCL General Manager Human

Resource

General Secretary

PTV Controller Administration

amp personnel

President

SNGPL Manager Human Resource General Secretary

ZTBL SVP amp Head H R amp

Operations Division

General Secretary

240

Appendix - B-1

Workers by EstablishmentPlace of Posting Interviewed ARL

Name Of Office Site Or Establishment Number Of Persons

Administrative Offices 4

Main Factory 20

Parking and petrol pump 6

Total 30

241

Appendix B-2

Workers by EstablishmentPlace of Posting Interviewed CDA

Name Of Office Site Or Establishment Number Of Persons

Environment Directorate 14

Sanitation Directorate 14

Administration Directorate 14

Enforcement Directorate 14

Revenue Directorate 14

Total 70

242

Appendix B-3

Workers by EstablishmentPlace of Posting Interviewed IESCO

Name Of Office Site Or Establishment Number Of Persons

Head Office Islamabad 6

Executive Engineer Office G-7 Islamabad 4

Executive Engineer Office Rawalpindi

Cantt

5

SDO Office Islamabad 10

SDO Office Rawalpindi Cantt 10

Grid Station Chishtia Abad Rawalpindi 5

Grid Station Zero Point Islamabad 5

Grid Station I-9 Islamabad 5

Grid Station H-11 Islamabad 5

Customer Service Centre Islamabad 5

Complaint Office Islamabad 5

Executive Engineer Office I-9 Islamabad 5

Total 70

243

Appendix - B-4

Workers by EstablishmentPlace of Posting Interviewed KTM

Establishment Place Number of Workers

Main Factory 32

Power House 3

Total 35

244

Appendix B-5

Workers by EstablishmentPlace of Posting Interviewed OGDCL

Name of Office Site or Establishment Number of Persons

Procurement Deptt 4

Administration Deptt 4

Engineering Deptt 4

Survey Deptt 4

Marketing Deptt 4

Stores ndashI9 Deptt 3

Training (OGTI) 1

Jand Oil Field 4

Loti Oil Field 4

Rahim Yar Khan Oil Field 4

Chaknaurang Oil Field 4

Lkot Satang Oil Field 4

Einkasar Oilfield 4

Service Station 2

Total 50

245

Appendix B-6

Workers by EstablishmentPlace of Posting Interviewed PCP

Name of Office Site or Establishment Number of Persons

Head Quarter PCP Islamabad 21

PCP Press Islamabad 29

Total 50

246

Appendix B-7

Workers by EstablishmentPlace of Posting Interviewed PTCL

Name of Office Site or Establishment Number of Persons

PTCL Head Quarter G-8 Islamabad 10

DE Office F-8 Islamabad 7

DE Office Westridge Rawalpindi 7

DE Office Cantt Rawalpindi 7

Telephone Exchange Westridge Rawalpindi 6

Telephone Exchange Cantt Rawalpindi 7

DE Office Satellite Town Rawalpindi 2

Revenue Office Rawalpindi 7

Civil Maintenance Office Rawalpindi 2

Customer Services Centre Rawalpindi 2

Customer Services Centre G-9 Islamabad 2

Customer Services Centre Zero Point Islamabad 5

Telephone Exchange F-8 Islamabad 6

Total 70

247

Appendix B-8

Workers by EstablishmentPlace of Posting Interviewed PTV

Name of Office Site or Establishment Number of Persons

Head Quarter Administration Offices 11

Ptv Head Qurter Telecasting 30

Ptv-1 Etv 9

Total 50

248

Appendix B-9

Workers by EstablishmentPlace of Posting Interviewed SNGPL

Name of Office Site or Establishment Number of Persons

Construction Department 7

Connection Department 7

Meter Reading Department 7

Billing Department 8

Sales Department 7

Recovery Department 7

Administration Department 7

Total 50

249

Appendix B-10

Workers by EstablishmentPlace of Posting Interviewed ZTBL

Name of Office Site or Establishment Number of Persons

Credit Division 6

Law Division 6

Recovery Division 6

General Services Division 6

Human Resource Division 6

Audit Division 6

Zonal Office 4

Zero Point Branch 4

G- 7 Branch 4

Sensa Branch 2

Total 50

250

Appendix C-1

Financial Benefits of Workers (by Unionsrsquo Efforts)

W-rise Percentage Number of

Bonuses

Other Allowances

Org

Name

Previous

Charter

Present

Charter

Previous

Charter

Present

Charter

ARL 22 18 5 41 5 of profit also paid to workers

CDA 20 20 2 22 Talwar All Dress All Washing All

IESCO 15 15 - - Hardship All and free electricity2

KTM - - 4 13 -5 of profit paid to workers

-Employer contributes Equivalent to

5 of salary to Employees Old Age

Benefit Institute

- Employer contributes Equivalent to

5 of salary to Social Security

OGDCL 191

20 2 24 Field Allowance for field staff amp 5

of profit to workers

PCP 15 15 - - Tea Allowance Capital Allowance

Night Allowance

PTCL - 35 1 15

PTV 25 25 1 1 Technical Allowance Heavy Duty

Allowance etc

SNGPL 15 15 2 2 Recreation All Half basic

ZTBL 15 15 2 2 Interest free loans

251

1- 4 four bonuses are compulsorily paid but more than are depending on profit

2- Tow bonuses are paid every year on Eid occasion and every bonus is of Rs

2000 only

3- In KTM profit decreased because of crisis in textile sector so bonus reduced to

one

4- Two bonuses are compulsory and if there is discovery in the year then

discovery bonus is also paid and called Discovery Award

5- In PTCL one Bonus is paid every year In 2005 bonus amount was Rs 16000

but in 2006 it reduced to Rs 9000 only and union filed a suit in NIRC for this

reduction

252

Appendix C-2

Non Financial Facilities of Workers (by Union Efforts)

OrganizAtion

Name

J-sec Hours

week

Annual Leaves Others

ARL Yes 40 40 Cheapest canteen

Medical Treatment

CDA Yes 39 68 Plots

Medical Treatment

IESCO Yes 375 73 Free Electricity

Medical Treatment

KTM Yes 48 40 Free House Free Gas

Free Electricity

Medical Treatment

OGDCL Yes 385 68 Recreation Clubs

Medical Treatment

PCP Yes 40 68 Medical Treatment

PTCL Yes 41 68 Call of 200 units free

Medical Treatment

PTV Yes 365 68 Medical Treatment

SNGPL Yes 39 68 Medical Treatment

ZTBL Yes 39 68 Medical Treatment

253

Appendix C-3

Monthly Wages of Workers (on December 31 2006)

Name of Org

Less Than Rs

4000-

Rs4000- to Rs 5000-

5000- To

10000

10001 to

15000-

15001 to

20000-

20001 to

25000

Above Rs

25000-

Total

ARL - - - 25 3 2 - 30

CDA - 6 52 12 - - - 70

IESCO - 2 36 28 4 - - 70

KTM - 20 13 2 - - - 35

OGDC - - 15 14 5 14 2 50

PCP - 2 36 12 - - - 50

PTCL - - 8 32 28 2 - 70

PTV - - 5 7 15 5 18 50

SNGPL - - - 19 18 9 4 50

ZTBL - - 8 20 16 4 2 50

Total - 30 173 171 89 36 26 525

Percentag

e

0 571 3296 3257 1695 686 495 100

Up to Rs 10000- 3867

From 10000 to 20000- 4952

Above Rs 20000 1181

254

Appendix D-1

Nature of Sampled Organizations

S

No

Name of

Organization

Organization

ActivityBusiness

Nature

Legal Status

Owned Controled

by

1 Attock Refinery Ltd

(ARL)

Oil Refining Public Limited Private

2 Capital Development

Authority (CDA)

Town Planning

City Municipal

Services

Government

Autonomous Body

Government of

Pakistan

3 Islamabad Electric

Supply Company

(IESCO)

Electric Power

Supply

Government

Autonomous Body

Government of

Pakistan

4 Koh-i-Noor Textile

Mills Ltd

Textile

Manufacturing

Public Limited Private

5 Oil amp Gas

Development

Corporation Ltd

(OGDCL)

Oil amp Gas

Exploration and

extraction

Semi Government

Autonomous Body

Government of

Pakistan

6 Printing Corporation

of Pakistan (PCP)

Printing and

Publication

Government

Autonomous Body

Government of

Pakistan

7 Pakistan

Telecommunication

Corporation Ltd

(PTCL)

Telephone Services Public Limited Private

8 Pakistan Television

Corporation

Telecasting

Information

Government

Autonomous Body

Government of

Pakistan

9 Sui Northern Gas Pipe

Line Ltd (SNGPL)

Natural Gas Supply Semi Government

Autonomous Body

Government of

Pakistan

10 Zari Tarraqiati Bank

Ltd (ZTBL)

Banking Government

Autonomous Body

Government of

Pakistan

255

Appendix D-2

Sampling Detail

S No

Name of

Organization

Total

Unions

Total

Permanent

Workers

Permanent

Workers

Sampled

Total

Temporary

Workers

Temporary

Workers

Sampled

1 (ARL) 1 438

30 157 10

2 (CDA) 3 14000

70 1300 10

3 (IESCO) 2 12700

70 854 10

4 (KTM) 2 1940

35 1655 10

5 (OGDCL) 2 9338

50 752 10

6 (PCP) 1 545

50 - -

7 (PTCL) 4 59700

70 2430 10

8 (PTV) 2 870

50 365 10

9 (SNGPL) 2 7600

50 610 10

10 (ZTBL) 1 2520

50 325 10

Total 20 109661

525 8448 90

256

Appendix E-1

Abbreviations for Words Used in Analysis Tables

Abbreviation Explanation

FREQ or Freq Frequency

IND Indifferent

ORG Organization

RES Respondents

S Satisfied

US Un-satisfied

UN Union

VAR Variables

VS Very Satisfied

VUS Very Un-satisfied

WT or Wt Weight or weighted

Y YES

N NO

Σ Sum Total

257

Appendix E- 2

List and Codes of Variables Used

Name of Variable Code of

Variable

Type of

Variable

Variable

Pertaining to

Success of Union Su Dependent Union

Satisfaction of Workers Sw Mediating Workers

EmployersManagement Satisfaction Se Mediating Employers

Management

Wag-Rise Wris Independent Workers

Financial Benefits (bonus) Fbft Independent Workers

WorkerOfficer Wage Salary Difference

Reduction

Wdf Independent Workers

Job Security Jsec Independent Workers

Time Reduction Td Independent Workers

Leaves Increase Linc Independent Workers

Over Time Ot Independent Workers

Working Conditions Wcon Independent Workers

Health Facility Hfac Independent Workers

Children Education Ced Independent Workers

Post retirement Benefits Pension Prb Independent Workers

Recreation Rfac Independent Workers

Training opportunities Top Independent Workers

Workers Education We Independent Workers

Workersrsquo Productivity Efficiency

performance improvement

Pin Independent Management

Work Place Harmony Wph Independent Management

Informing workers about Rights Ir Independent Workers

and mediating variables because act as independent as unionrsquos success depends

on them but they are further dependent on independent variables comprising

workersrsquo and employersrsquo responses respectively

258

Appendix ndash F-1

Responses of Union Workers and Management of ARL

(Attock Refinery Limited)

Respon dents

Workers Union

Manage-ment

VAR

YES NO VS

S

IND

US

VUS

UN RES

MGT RES

WT

Wris 30 - 2 20 8 - - Y Y -

Fbft 28 2 8 16 4 2 - Y Y -

Jsec 30 - 8 18 4 - - Y Y -

Td 4 26 16 14 - - Y Y -

Linc 26 4 24 6 - - Y Y -

Ot 26 4 20 10 - - Y Y -

Wcon 30 4 22 4 - - Y Y -

Hfac 30 - 20 6 4 Y Y -

Ced 22 8 2 14 10 4 Y Y -

Prb 8 22 - 2 14 14 Y Y -

Rfac 12 18 2 10 8 10 Y Y -

Top 10 20 18 8 4 Y Y -

We 16 14 12 14 4 Y Y -

Wdf 18 12 6 8 12 4 Y Y -

Ir 24 6 16 12 2 Y - -

Pin 26 4 Y IND 3

Wph 28 2 Y S 4

259

Appendix ndash F-2

Responses of Union Workers and Management of CDA

(Capital Development Authority)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGE RES

WT

Wris 44 26 40 14 16 Y Y -

Fbft 70 62 6 2 Y Y -

Jsec 54 16 48 18 4 Y Y -

Td 23 47 36 32 2 - Y N -

Linc 23 47 35 33 2 Y N -

Ot 36 34 30 32 8 Y Y -

Wcon 46 24 30 28 12 Y Y -

Hfac 44 26 40 14 16 Y Y -

Ced 18 52 13 48 09 Y Y -

Prb 64 6 14 50 6 0 Y Y -

Rfac 4 66 58 12 Y N -

Top 12 58 10 20 40 Y Y -

We 44 26 28 34 8 Y N -

Wdf 28 42 28 28 14 Y Y -

Ir 56 14 54 10 6 Y - -

Pin 36 34 Y IND 3

Wph 55 15 Y S 4

260

Appendix ndash F-3

Responses of Union Workers and Management of IESCO (Islamabad Electric Supply Company)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 53 17 - 26 22 22 - Y Y -

Fbft 8 62 2 12 56 - Y N -

Jsec 59 11 7 40 13 10 - Y Y -

Td 52 18 - 40 23 7 - Y Y -

Linc 50 20 - 40 25 5 - Y N -

Ot 54 16 36 20 14 - Y Y

Wcon 56 14 50 10 10 - Y Y -

Hfac 52 18 26 24 20 - Y Y -

Ced 29 41 9 44 17 - Y Y -

Prb 16 54 4 46 20 - Y Y -

Rfac 17 53 47 23 - Y Y -

Top 27 43 22 34 14 - Y Y

We 43 27 - 36 24 10 - Y N -

Wdf 18 52 - 2 37 31 - Y N -

Ir 54 16 - 49 10 11 - Y - -

Pin 50 20 - Y S 4

Wph 57 13 - Y FS 5

261

Appendix ndash F-4

Responses of Union Workers and Management of KTM (Koh-i-Noor Textile Mills Limited)

Respondents

Workers Union Manage-ment

VAR YES NO VS S IND US

VUS

UN RES

MGT RES

WT

Wris 10 25 - 10 4 21 Y N -

Fbft 27 8 - 17 17 1 Y Y -

Jsec 20 15 - 15 10 10 Y Y -

Td - 35 - 13 13 9 Y N -

Linc - 35 - 10 16 9 Y N -

Ot 16 19 - 12 15 8 Y N -

Wcon 30 5 - 30 5 - Y Y -

Hfac 31 4 6 25 4 - Y Y -

Ced 35 4 20 11 - Y Y -

Prb 22 13 - 17 10 8 Y - -

Rfac 19 16 - 16 10 9 Y N -

Top 35 22 13 Y N -

We 17 18 12 17 6 Y Y -

Wdf 2 33 2 7 26 Y N -

Ir 25 10 20 12 3 Y -- -

Pin 19 16 Y S 4

Wph 29 6 Y S 4

262

Appendix ndash F-5

Responses of Union Workers and Managementof OGDC (Oil and Gas Development Company Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 35 15 - - Y Y -

Fbft 46 4 2 34 10 4 - Y Y -

Jsec 50 - - 45 5 - - Y Y -

Td 50 - - 40 10 - - Y Y -

Linc 45 5 - 40 10 - - Y Y -

Ot 28 22 - 22 16 12 - Y Y -

Wcon 43 7 4 33 10 3 - Y Y -

Hfac 50 - 17 28 5 - - Y Y -

Ced 22 28 - 8 36 06 - Y Y -

Prb 29 21 - 27 13 10 - Y Y- -

Rfac 37 13 18 14 14 4 - Y Y -

Top 27 23 4 19 20 7 - Y Y -

We 30 20 - 21 19 10 - Y N -

Wdf 34 16 5 26 14 5 - Y Y -

Ir 46 4 - 34 12 4 - Y - -

Pin 39 11 - Y IND 3

Wph 45 5 - Y S 4

263

Appendix ndash F-6

Responses of Union Workers and Management of PCP (Printing Corporation of Pakistan)

Respon

dents

Workers Union Manage-

ment

VAR YES NO VS S IND US V

US

UN

RES

Mgt

Res

Valu

e

Wris 44 6 37 4 9 Y Y -

Fbft 44 6 33 8 9 Y Y -

Jsec 47 3 4 40 4 2 Y Y -

Td 50 40 4 6 Y Y -

Linc 50 38 7 5 Y Y -

Ot 45 5 37 9 4 Y Y -

Wcon 41 9 39 6 5 Y Y -

Hfac 42 8 40 5 5 Y Y -

Ced 11 39 11 16 23 Y N -

Prb 33 17 5 30 15 Y Y -

Rfac - 50 30 20 Y N -

Top - 50 24 26 Y N -

We 26 24 30 20 Y N -

Wdf 5 45 5 37 8 Y N -

Ir 38 12 20 21 9 Y - -

Pin 41 9 Y IND 3

Wph 44 6 Y S 4

264

Appendix ndash F-7

Responses of Union Workers and Management of PTCL

(Pakistan Telecommunication Corporation Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO

VS S IND US VUS

UN RES

MGT RES

WT

Wris 56 14 28 18 24 - Y Y -

Fbft 42 28 14 16 40 Y Y -

Jsec 50 20 2 39 15 14 - Y Y -

Td 42 28 40 20 10 - Y Y -

Linc 40 30 36 24 10 - Y Y -

Ot 18 52 10 38 22 - Y Y -

Wcon 51 19 36 24 10 - Y Y -

Hfac 50 20 44 16 10 - Y Y -

Ced 34 36 11 32 27 - Y N -

Prb 24 46 4 44 22 - Y N -

Rfac 70 40 30 - Y N -

Top 26 44 16 40 14 - Y Y -

We 22 48 19 39 12 - Y N -

Wdf 14 56 32 38 - Y Y -

Ir 36 34 18 34 18 Y - -

Pin 34 36 - Y IND 3

Wph 40 30 - Y IND 3

265

Appendix ndash F-8

Responses of Union Workers and Management of PTV (Pakistan Television Corporation)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 45 5 6 26 14 4 Y Y -

Fbft 40 10 - 36 12 2 Y Y -

Jsec 48 2 7 39 3 1 Y Y -

Td 42 8 37 10 3 Y Y -

Linc 40 10 38 9 3 Y Y -

Ot 43 7 41 6 3 Y Y -

Wcon 44 6 39 11 Y Y -

Hfac 39 11 37 5 8 Y Y -

Ced 32 18 13 20 17 Y Y -

Prb 37 13 21 24 5 Y Y -

Rfac 12 38 10 34 6 Y N -

Top 16 34 16 24 10 Y Y -

We 39 11 33 8 9 Y Y -

Wdf 32 18 23 14 13 Y Y -

Ir 99 11 - 30 10 10 Y -

Pin 43 7 Y IND 3

Wph 47 3 Y YS 4

266

Appendix ndash F-9

Responses of Union Workers and Management of SNGPL (Sui Northern Gas Pipe Line Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 47 3 7 30 10 3 Y Y -

Fbft 47 3 5 30 12 3 Y Y -

Jsec 48 2 5 34 11 Y Y -

Td 44 6 34 16 Y N -

Linc 40 10 32 18 Y N -

Ot 44 6 3 21 23 3 Y Y -

Wcon 45 5 3 40 4 3 Y Y -

Hfac 39 11 4 34 10 2 Y Y -

Ced 11 39 6 22 22 Y Y -

Prb 46 4 37 8 5 Y Y -

Rfac 47 23 16 30 2 2 Y Y -

Top 15 35 10 34 6 Y Y -

We 22 28 15 25 10 Y Y -

Wdf 32 18 - 17 28 5 Y Y -

Ir 37 13 25 14 11 Y - -

Pin 39 11 Y IND 3

Wph 47 3 Y S 4

267

Appendix ndash F-10

Responses of Union Workers and Management of ZTBL (Zarhi Tarraqiatti Bank Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS

S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 32 14 4 - Y Y -

Fbft 42 8 28 14 8 - Y Y -

Jsec 50 - 26 20 4 - - Y Y -

Td 50 28 16 6 - Y Y -

Linc 50 28 14 8 Y Y -

Ot 36 14 16 12 22 - Y Y -

Wcon 45 5 32 14 4 - - Y Y -

Hfac 40 10 1 38 4 7 - Y Y -

Ced 28 22 22 22 6 - Y Y -

Prb 12 38 2 18 30 - Y Y -

Rfac 8 42 28 22 - Y Y -

Top 30 20 26 20 4 - Y Y -

We 32 18 28 18 4 - Y Y -

Wdf 30 20 2 20 22 6 - Y Y -

Ir 42 8 4 34 7 5 - Y - -

Pin 31 19 - Y S 4

Wph 40 10 - Y S 4

268

Appendix ndash F-11

Essentiality of Unions Inter Unions Relations and Unions Status as Compared to Past

(Workers Responses)

Questions

QNo 18 Is Union Essential in yourganization

QNo 19 Are Inter Union Relations Good in Your Organization

QNo 20 Are Unions of Today Weaker Than Unions ofthe Past

Name of Number of Number of Responses

Number of Responses

Number of Responses

Org Respo ndents

Unions in Org

Yes No Yes No Yes No

ARL) 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

269

Appendix ndash F-12

(Questionnaire-1 Question 18amp 19) About Work Council and Unionistsrsquo Training

(Union Office Bearersrsquo Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does union sign Charter of Demand

Q- 20 Have you been imparted training as unionrsquos office bearer by any agency

ARL YES Yes-after every three years Once by ARL in NILAT

and Once by PWF

CDA YES Yes-(interval not regular) Yes Once by ILO amp once

by APFOL

IESCO YES Yes-after every three years Yes- by our union

KTM NO Yes-after every three years Never

GDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Yes by WTO

PTCL NO Yes-after every three years Yes ndash by ILO

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Yes by NILAT

270

Appendix ndash F-13

About Charter of Demand and Wage Cut

(Management Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does Union Sign Charter of Demand

Q- 20 Did Union Accept Wage cut any Time

ARL YES Yes-after every three years Never

CDA YES Yes-(interval not regular) Never

IESCO YES Yes-after every three years Never

KTM NO Yes-after every three years Never

OGDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Never

PTCL NO Yes-after every three years Never

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Never

271

Appendix G-1

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR UNION OFFICE BEARERS-1

PERSONAL INFORMATION

Name of Company Institution ----------------------------Public Private

Name of office bearer----------------------------------------------------------

Designation---------------------

Nature of Duty------------------------------------------------------------------------------------

No of unions in organization--------------------Is Your Union ldquoCBArdquo---------- ------

Union registered with -----------Registrar------------NIRC------------

Name of your Union---------------------------------------Status in Union-----------------

Experience of union office in years-------------------Years of present status----------

UNION INFORMATION

1- Did Union exert efforts to Increase workers Wages ------ Yes-------- No------

If yes how much increased---------------------- In percentage---------------------------

Increase how many times-------------------After how long interval--------------------------

--

2- Did union exert efforts for Fringe Benefit of workers like Bonus Yes-- No----

272

If yes how much amount-------------------------- How many times a year-------------------

3 Did union exert efforts for workers Job Security ------ Yes-- No--

If yes then how----------------------------------------------------------------------------------

4- What are workersrsquo Duty Timings

Arrival time------------------------------Break--------------------- Leaving time --------------

Total Daily hours ------------ Weekly hours----------------- Weekly working days------

Did union exert efforts for reduction in workers duty hours------Yes-----No----------

If yes then how much time reduced--------per day----------------per week------------------

5- Did union exert efforts to increase workers Leaves--Yes No------

How---------------------------------------------------------------------------------------

6- Did union exert efforts for payment of Overtime for workers --- Yes No --

If yes then with these efforts are you

7 Did union exert efforts to improve Working Conditions and provide facilities

Yes------NO--------------

8- Did union exert efforts for Health care of workers ---- Yes No ---------

i- Arranged to establish Hospital-------------------------------------------------

ii- Arranged medical Allowance--------------------------------------------------

iii- Treatment Arrangements for family-------------------------------------------

iv- Treatment Arrangements for parents ----------------------------------------

v- Any other-------------------------------------------------------------------------

273

9- Did union exert efforts for Education of workersrsquo Children Yes--- No ---

i- Established School------------------------------------

ii- Arranged Scholarship--------------------------------

iii- Arranged Transport of School------------------------

iv- Provides education Allowance-----------------------

v- Any other Arrangement------------------------------

10- Did union exert efforts for Post Retirement Benefits of Workers Yes No----

i- Arranged pension facility-------------------------------

ii- Increase of pension amount-----------------------

iii- Any other----------------------------------------

If yes then with these efforts are you

11- Did union struggle to arrange Recreational Facilities for workers Yes No --

How Details -----------------------------------------------------------------------

With this are you

12- Did union struggle to arrange any Training for workers --- Yes No ----

If yes then how --------------------------------------------------------------------

13 Did union try to decrease workers officers Wagesalary differenceYes-- No--

14- Did union inform the workers about their Rights as worker --- Yes---- No --

If yes then how

15 Did union struggle to arrange Education Facility for workers --- Yes---- No --

----------------------------------------------------------------------------------------------------------

274

16- Did union exert efforts to Increase workers Productivity Performance

Yes-----No----------

17- Did union exert efforts to Increase workplace Peace Harmony --- YesNo

How-------------------------------------------------------------------------------------

18 Is there Work Council in the Organization to solve problems with negotiation

Yes-----No----------

How-------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20- Have you been imparted training as office bearers to conduct unionrsquos matters by

Any agency------------Yes------- No------Tell details---------------------------------

Was this training arranged by union------Yes No

275

Appendix G-2

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR WORKERS-2

Personal Data

Name of Company Institution ------------------------------------ Public ----Private----

Designation----------------- Service Length------- Age----------Education----------

Experience in present institution-------------------Total Experience---------------

Nature of Duty------------------------------------------------

Number of Unions in Institution-------- Are You Union member ----------

Since how many years ----------

Name of your Union------------------------------ Is Your Union ldquoCBArdquo ----------

Your Present Wage------------------------------------------------------------------------------

Basic Pay---------------------Allowances---------------------Total------------------------------

Union Data

1- Is There any Increase in Your Wage Due to Union ------ Yes--- No----

If Yes How Much----------------------------- In Percentage----------------------------

Increase How Many Times-------------------After How Long Interval---------------

With this Increase are you

276

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied-

2- Did Union Exert Efforts for any Fringe Benefit Like Bonus For Workers

Yes----No----

If Yes Amount------------------- -----------------How Many Times a Year------------

With these efforts are you

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied

3- Did Your Union Exert Efforts for Workers Job Security -----Yes ---No------

If yes then with these efforts are you

Fully Satisfied------Satisfied-------Indifferent-------Unsatisfied-------Fully Unsatisfied-----

4- What are Your Duty Timingshours

Arrival Time---------------------------Break------------------------ Leaving Time --------------------

Daily Hours --- --------- -----Weekly Hours -------------- Weekly Working Days-----------

Did Union Exert Efforts for Reduction in Working Hours----------Yes---------No--------

If Yes Then How Much Time Reduced---------Per Day-------------------Per Week-----------

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

5- Did Union Exert Efforts To Increase Workersrsquo Leaves

Yes ------No-----

If Yes then how many leaves Increased--------------------------------------------

With these efforts are you

277

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

6- Did union exert efforts for payment of overtime for worker Yes ------No-----

If yes then how-------------------------------------------------------------------------------

With these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

7 Did Union Exert Efforts To Improve Working Conditions --Yes ------No-----

With these efforts what is you over all satisfaction level

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

8 Did Union Exert Efforts For Health of Workers ---------Yes ----No-----

vi- Arranged to Establish a Hospital-------------------------------------------------

vii- Arranged Medical Allowance------------------------------------------------------

viii- How Much is Medical Allowance-------------------------------------------------

ix- Treatment Arrangements for Family---------------------------------------------

x- Treatment Arrangements for Parents -------------------------------------------

With These Efforts Are You

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

9- Did Union Exert Efforts for Education of Workers Children YesNo-----

vi- Established School---------------------------------------------- Yes ----No-----

vii- Arranged Scholarship------------------------------------------- Yes ----No----

278

viii- Arranged Transport Of School-------------------------------- Yes ----No-----

ix- Provides Education Allowance-------------------------------- Yes ----No-----

x- School Bus Arrangement--------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

10- Did Union Exert Efforts for Post Retirement Benefits of Workers ----YesNo

iv- Arranged Pension Facility------------------------------------- Yes ----No----

v- Increase of Pension Amount---------------------------------- Yes ----No----

vi- Any Other-------------------------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

11- Did Your Union Arrange Any Recreational Facilities -----Yes -----No------

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

12- Did You Ever Receive Any Training ---- ------------------------- Yes No ------

What sort of training ---------------------------------------------------------------------

Was This Training Because of Efforts of Union-------------------------------------

If Yes Then How --------------------------------------------------------------------------

Are you satisfied with this

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

13- Did Union Try to Decrease Wage Salary Difference of Officers and Workers

YesmdashNo--

If yes then with these efforts are you

279

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied-------Fully Unsatisfied---

14- Did Your Union Inform You about Your Rights As Worker Yes ----No--

If Yes Then How --------------------------------------------------------------------------

15- Did Your Union Arrange Any Education Facilitiesfor you ---Yes -----No-----

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied

16 Did Union Exert Efforts to Increase Workers ProductivityEfficiency

Yes -----No-----

If yes then with these efforts are you

17- Did Union Exert Efforts to Increase Workplace Peace Harmony Yes---No----

18 Is union necessary for workers in the organization Yes--------No-------

19 Do unions remain in mutual conflict if more than one Yes--------No-------

20 Are unions weak with compared to past Yes--------No-------

280

Appendix G-3

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3

Name of Company Institution ------------------------------------ Public Private

Name of Official (optional) -----------------------------------------------------------------

Designation---------------------------Service Length ----------------------------------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

UNION INFORMATIOM

No of Unions in Institutionhelliphellip Do you deal with registered Union unions--------

1 Is there any workersrsquo Wage Increase due to Unionrsquos efforts Yes-------No----

If yes how much------------------------------- In percentage----------------------

Increased how many times-------------------------After how long interval------------

2- Did union exert efforts for any Frinde benefit of workers like bonus Yes--

-----No-------

If yes how much amount---------------------- How many times a year------------

3- Did union demand for workers Job security -------Yes-----------No---------

281

4- What are workers duty timings

Arrival time----------------------------------Break--------------------- Leaving time ----

Total hours --------- Daily -----------Weekly---------Weekly working days--------

Did union demand for reduction in workers job hours---------------------------

If yes then how much time reduced------per day-----------------per week-------------

5- Did union demands to increase workersrsquo Leave ---- Yes------- No-------

6- Did union exert efforts for payment of overtime for workers ndashYes ----No ---

7- Did union demand to improve working conditions ---Yes---- No-------

8- For health of workers did union demand Yes---- No-------

xi- Arranged to establish a hospital--------------------------------------------

xii- Arranged medical Allowance of Amount--------------------------------

xiii- Treatment arrangements for family-------------------------------------

xiv- Treatment arrangements for parents ---------------------------------------

xv- Any other--------------------------------------------------------------------------

9- For Education of Workers Children did union demand to ----------------

xi- Establish School -----------------------------------------------------------------

xii- Arrange scholarship---------------------------------------------------------------

xiii- Arrange transport for school----------------------------------------------------

xiv- Provide Education Allowance---------------------------------------------------

xv- Any other Arrangement--------------------------------------------------------

Yes---- No-------

10- Did union demand for Post Retirement Benefits of Workers----------------

vii- Arranged pension facility---------------------------------------------------------

282

viii- Increase of pension amount--------------------------------------------------------

ix- Any other-----------------------------------------------------------------------------

Yes---- No-------

11- Did union demand to arrange any recreational facilities for workers---------

Yes---- No-------

12 Did union demand for any training of workers ------------------------------

Any Comment

13- Did union try to decrease Wagesalary difference of officers and workers----

Yes -----No -----

14- 15- Did union inform the workers about Rights as worker Yes-------No-------

15- Did union Demand for workers Education Facility Yes-------No--------

-----------------------------------------------------------------------------------------------------

16- Did union exert efforts to increase workers productivityefficiency

Yes-------No--------

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

Any Comment-

17- Did union exert efforts to improve workplace Peace Harmony

Yes-------No--------

How-------------------------------------------------------------------------------------

283

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

18 Is there work council in the organization Yes-------No----

----------------------------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20 Did Union CBA accept any time wage cut for Firm benefit Yes -----No-----

Any comment

------------------------------------------------------------------------------------------------------------

284

Appendix G-4

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR TEMPORARY WORKERS-4

Name of Company Institution ------------------------------------ Public Private

Designation---------------------------Service Length -------Age-----------Education--------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

Question- 1 Does your Wage Increase regularly YES---No--

If increase how much -----------in percentage ---------------

Question- 2 Do you have Job Security YES----No--

Question- 3 What are your Daily Working Hours -----------

Question- 4 Are your Working Conditions ndashwell ----- YES----No--

Question- 5 Do you avail Children Education facility YES----No--

Question- 6 Do you avail HealthTreatment facility YES----No--

Question- 7 Do you have Financial Benefit like bonus YES----No--

Question- 8 Do you have Miscellaneous Benefit (petty Allowance)

YES----No--

Question- 9 How many Yearly leaves Do you have ---------------

Question- 10 Is there any contribution of union in providing these

facilities to you YES----No--

285

Appendix H-1

GLOSSARY

DEFINITIONS OF TERMS OF RESEARCH TITLE

Terms used in research title are defined below

HUMAN RESOURCE DEVELOPMENT (HRD)

Rao (1995 p 26) extracted from UNDP following definition

ldquoHRD implies many facets of development of people including their physical

intellectual emotional political spiritual and all other forms of developmentrdquo

INDUSTRIAL RELATIONS

ldquoThe field of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union Governments set

the framework for labor relations through legislation and regulationrdquo (Wikipedia-a)

LABOR UNIONS

According to lsquoWorld Labor Report 1997-1998rsquo of ILO The Australian Bureau of

Statistics has defined unions as

ldquoAn organization consisting predominantly of employees the principle activities of

which include the negotiation of pay and conditions of employment for its membersrdquo

httpwwwiloorgpublicenglishdialogueifpdialpublwlr97annexnoteshtm

ORGANIZATIONAL CLIMATE

Burton et al (2004) defined Organizational climate as

ldquoOrganizational climate is the attitude of the individuals concerning the

organizationmdashits degree of trust conflict morale rewards equity leader credibility

resistance to change and scapegoating as seen by the individualsrdquo

286

For this research it means with in the organization and not beyond organization on

social or political forums not being a subsidiary of any political party

PAKISTANrsquoS PERSPECTIVE

In Pakistanrsquos industrial relations system all the permanent workers may be member of

any CBA union or other unions or non members but permanent employees of the

organization are equally benefited from collective bargaining Further more in Pakistan there

is its own Perspective for Collective Bargaining Shafiq-ur-Rehman (2003) expressed that

collective bargaining in Pakistan instead of the issue of wage rise typically covers a much

wider range of issues including pecuniary terms of employment (such as non statutory

allowances and benefits) and non pecuniary conditions of employment including job security

and working conditions (such as safety of work place and methods of production)

  • 01 Titledoc
  • 02 Front Matterdoc
    • TABLE OF CONTENTS
    • Page
    • 1 INTRODUCTION 1
      • 2 LITERATURE REVIEW 7
        • 221 Emergence of Labor Unions 12
          • 223 Why Workers Join Unions 17
          • 23 UNIONS ROLE FOR WORKERS BENEFITS 19
          • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39
          • 241 Productivity Efficiency and Profitability 39
          • 242 Work Place Harmony and Cooperative Role 46
            • 25 STRATEGIES AND TACTICS OF UNIONS 50
              • 251 Source of Strength of Unions 50
                • 2511 Unionsrsquo Density and Their Strength to Effect 50
                • 252 Peaceful Means of Achieving Objectives 51
                  • 26 CORRUPTION OF UNIONS 53
                  • 261 Corruption and Selfishness of Officials 53
                    • 264 Bribes (Extortion and Pay-off) 58
                      • 31 HISTORY OF LEGISLATION 61
                        • 311 Laws Permitting Establishment of Unions 62
                          • 312 Laws for Settlement of Disputes 64
                          • 322 ILO Conventions 67
                            • 4 RESEARCH METHODOLOGY 84
                            • 42 POPULATION AND SAMPLING 91
                            • 321 Stage-lsquoIrsquo Sampling of Organizations 91
                              • 422 Stage-lsquoIIrsquo Sampling of Respondents 92
                              • 4221 Sampling of Union Office Bearers 92
                              • 4222 Sampling of Permanent (Unionized) workers 93
                              • 4223 Sampling of Management 93
                                • 43 DATA COLLECTION INSTRUMENTS 93
                                  • 431 Questionnaires and Their Structure 93
                                    • 44 PREPARATION OF SATISFACTION LEVEL SCALE 97
                                      • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103
                                        • BENEFITS
                                        • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105
                                        • 51 DATA PRESENTATION 106
                                          • 521 Organizational Means of Workersrsquo Variables 111
                                          • 522 Organizational Means of Managementrsquos Variables 122
                                            • 532 Chi Square Test Application 166
                                            • 533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182
                                              • 6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195
                                              • 63 CONCLUSIONS 209
                                              • 64 SUGGESTIONS AND RECOMMENDATIONS 210
                                              • 65 SUGGESTIONS FOR FURTHER RESEARCH 212
                                              • REFERENCES 213
                                              • APPENDICES 229
                                              • LIST OF TABLES
                                              • Table Page
                                              • 1 Responses of Workers of ARL Organizational Mean Calculation) 112
                                                • 2 Responses of Workers of CDA (Organizational Mean Calculation) 113
                                                  • 3 Responses of Workers of IESCO (Organizational Mean Calculation) 114
                                                    • 4 Responses of Workers of KTM (Organizational Mean Calculation) 115
                                                      • 7 Responses of workers of PTCL (Organizational Mean Calculation) 118
                                                      • 8 Responses of workers of PTV (Organizational Mean Calculation) 119
                                                      • 9 Responses of workers of SNGPL (Organizational Mean Calculation) 120
                                                      • 11 Responses of Management of ARL 122
                                                          • 12 Responses of Management of CDA 123
                                                            • 18 Responses of Management of PTV 129
                                                            • 39 Chi square calculations - Security (Jsec) 169
                                                              • 40 Chi square calculation - Time reduction (Td) 170
                                                                  • 56 Facilities of Permanent Workers (Union Members) 191
                                                                      • 03 CHAP-1doc
                                                                        • CHAPTER 1
                                                                        • INTRODUCTION
                                                                          • 04 CHAP-2doc
                                                                            • CHAPTER 2
                                                                              • LITERATURE REVIEW
                                                                                • One reason of these hardships in the words of George (2004) is that a majority of working people possess labor as their only resource to carry on with their lives
                                                                                  • 221 Emergence of Labor Unions
                                                                                    • Aidt and Tzannatos (2001) asserted that the desirability of unions depends on many factors including (a) what unions do (b) how collective bargaining is organized and (c) the effectiveness of dispute resolution mechanisms
                                                                                      • 23 UNIONS ROLE FOR WORKERS BENEFITS
                                                                                        • Klaff and Ehrenberg (2003) using the data source of survey conducted in USA by the Association of Higher Education Facilities Officers 1997-1998 investigated that union coverage affected staff salaries at 163 US colleges and universities and estimated a union salary premium of 9- 11
                                                                                          • Similarly Anyemedu (2002) found that in Ghana government considers wage restraint as a means of attracting foreign investment Hence the government and employers have succeeded in installing the capacity to pay of employers as virtually the only factor to be taken into account in wage determination
                                                                                            • Labor unions also exert efforts for increasing equality and reducing discrimination in wages of workers
                                                                                              • This time reduction was prevailing everywhere at large extent as Aidt amp Tzannatos 2001) wrote that hours worked is lower among unionized than non-unionized workers This is true for both total and normal hours
                                                                                                • Unionsrsquo role in securing health safety and welfare benefits for employees has been found in following studies
                                                                                                  • Stiglitz (2000) admitted that unions have played role in Health and safety standards and had played also role in improvement of working conditions for workers
                                                                                                    • Unions also have an eye on the life of workers after the end of service For this they exert efforts either in the form of arranging employer contribution or launch their own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is shown in the several researches where unionized workers receive better pension options and opportunities
                                                                                                      • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY
                                                                                                        • The co-operative role of unions towards state employer and society by exerting efforts to increase productivity and efficiency has been studied by several researchers as quoted in following lines
                                                                                                          • 241 Productivity Efficiency and Profitability
                                                                                                          • 242 Work Place Harmony and Cooperative Role
                                                                                                            • Song (1999) wrote that South Korean unionrsquos struggled to promote worker compliance and commitment to firms and brought the employees back from street rallies into the workplace
                                                                                                              • 25 STRATEGIES AND TACTICS OF UNIONS
                                                                                                              • For the achievement of objectives of securing benefits for the workers and solution of their problems unions adopt peaceful and violent means and succeed when they have strength or fail in their struggle if they have no strength Numerous researches have highlighted it
                                                                                                                • Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos view large and centralized unions are more functional and influential than fragmented unions
                                                                                                                  • 251 Source of Strength of Unions
                                                                                                                    • 2511 Unionsrsquo density and their strength to effect
                                                                                                                    • 252 Peaceful Means of Achieving Objectives
                                                                                                                      • 26 CORRUPTION OF UNIONS
                                                                                                                      • Though unions exerted efforts for securing benefits gaining respect and building a fearless atmosphere for their workers but unionsrsquo history is also plagued by corruption which has been brought to light by following researches
                                                                                                                      • 261 Corruption and Selfishness of Officials
                                                                                                                      • For unions in Pakistan Khan (1992) expressed that the numerical increase of trade unions leads to personal rivalry of union leaders competing for command over small unions The trade unions leaders fight among themselves instead of fighting against management or government and every leader is status seeker caring more for his own prestige and image than to cause of common worker or unionism
                                                                                                                        • 264 Bribes (Extortion and Pay-off)
                                                                                                                          • 05 CHAP-3doc
                                                                                                                            • CHAPTER 3
                                                                                                                              • 31 HISTORY OF LEGISLATION
                                                                                                                                • 311 Laws Permitting Establishment of Unions
                                                                                                                                • 312 Laws for Settlement of Disputes
                                                                                                                                • 322 ILO Conventions
                                                                                                                                  • 06 CHAP-4doc
                                                                                                                                    • CHAPTER 4
                                                                                                                                    • RESEARCH METHODOLOGY
                                                                                                                                    • 42 POPULATION AND SAMPLING
                                                                                                                                    • 421 Stage-lsquoIrsquo Sampling of Organizations
                                                                                                                                    • 422 Stage-lsquoIIrsquo Sampling of Respondents
                                                                                                                                    • 4221 Sampling of union office bearers
                                                                                                                                    • 4222 Sampling of permanent (Unionized) workers
                                                                                                                                    • 4223 Sampling of management
                                                                                                                                      • 43 DATA COLLECTION INSTRUMENTS
                                                                                                                                        • 431 Questionnaires and their Structure
                                                                                                                                          • 44 PREPARATION OF SATISFACTION LEVEL SCALE
                                                                                                                                            • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS
                                                                                                                                              • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits
                                                                                                                                                  • 07 CHAP-5doc
                                                                                                                                                    • 51 DATA PRESENTATION
                                                                                                                                                    • 521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES
                                                                                                                                                    • Organization wise arithmetic means and percentages of all the organizations on the basis of the variables pertaining to workers have been calculated below in tables 1 to table 10
                                                                                                                                                    • Table-1 Responses of Workers of ARL Organizational Mean Calculation)
                                                                                                                                                      • Ced
                                                                                                                                                      • We
                                                                                                                                                        • Table 2 Responses of Workers of CDA (Organizational Mean Calculation)
                                                                                                                                                          • We
                                                                                                                                                          • Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)
                                                                                                                                                            • Linc
                                                                                                                                                              • We
                                                                                                                                                                • Table 4 Responses of Workers of KTM (Organizational Mean Calculation)
                                                                                                                                                                  • Jsec
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 7 Responses of workers of PTCL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 8 Responses of workers of PTV (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • 522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES
                                                                                                                                                                    • Organization wise arithmetic means of all the organizations on the basis of the two variables pertaining to management have been calculated below in tables 11 to table 20
                                                                                                                                                                    • Table 11 Responses of Management of ARL
                                                                                                                                                                      • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing that union of ARL is exerting efforts in exhorting workers to work for the interest of employer Therefore union is successful
                                                                                                                                                                          • Table 12 Responses of Management of CDA
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (KTM) = Σ Xi2 = 82 = 400
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (OGDC) = Σ Xi2 = 72 = 35
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                              • Table 18 Responses of Management of PTV
                                                                                                                                                                                • Organizational Mean (SNGPL) = ΣXi2 = 72 = 35
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                  • Variable Mean = Σ fXi 525 = 1856525 = 354
                                                                                                                                                                                  • Variable Mean = = Σ fXi 525 1730525 = 330
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 =1643 525 = 313
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 = 1582525 = 301
                                                                                                                                                                                      • We
                                                                                                                                                                                      • 331
                                                                                                                                                                                        • 532 CHI SQUARE TEST APLICATION
                                                                                                                                                                                            • Table 39 Chi square calculations ndash Job security (Jsec)
                                                                                                                                                                                              • Table 40 Chi square calculation - Time reduction (Td)
                                                                                                                                                                                                • 533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS
                                                                                                                                                                                                  • Variable Mean
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 3210 = 33
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 4010 = 4
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Total of Means
                                                                                                                                                                                                    • (Data from calculations of tables 52 amp 53
                                                                                                                                                                                                      • By putting the values of means of columns in the equation
                                                                                                                                                                                                      • Combine Mean = Σ i N = Se = (Pin + Wph)2
                                                                                                                                                                                                      • Se = (33 + 40)2 = 732
                                                                                                                                                                                                          • Table 56 Facilities of Permanent Workers (Union Members)
                                                                                                                                                                                                            • ARL
                                                                                                                                                                                                              • 08 CHAP-6doc
                                                                                                                                                                                                                • DISCUSSION CONCLUSION AND RECOMMENDATIONS
                                                                                                                                                                                                                • 64 SUGGESTIONS AND RECOMMENDATIONS
                                                                                                                                                                                                                • 65 SUGGESTIONS FOR FURTHER RESEARCH
                                                                                                                                                                                                                  • 09 Reference amp Appendicesdoc
                                                                                                                                                                                                                    • Appendix A-1
                                                                                                                                                                                                                    • Appendix A-3
                                                                                                                                                                                                                    • Workers by Designation of IESCO
                                                                                                                                                                                                                    • Appendix A-4
                                                                                                                                                                                                                    • Workers by Designation PTV
                                                                                                                                                                                                                    • Appendix A-9
                                                                                                                                                                                                                    • Workers by Designation of SNGPL
                                                                                                                                                                                                                    • Workers by Designation of ZTBL
                                                                                                                                                                                                                    • Appendix A-11
                                                                                                                                                                                                                    • Representatives of Unions and Employers Interviewed
                                                                                                                                                                                                                    • Appendix - B-1
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed ARL
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed CDA
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed IESCO
                                                                                                                                                                                                                      • Appendix - B-4
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed KTM
                                                                                                                                                                                                                      • Appendix B-5
                                                                                                                                                                                                                        • Workers by EstablishmentPlace of Posting Interviewed OGDCL
                                                                                                                                                                                                                          • Workers by EstablishmentPlace of Posting Interviewed PCP
                                                                                                                                                                                                                            • Workers by EstablishmentPlace of Posting Interviewed PTCL
                                                                                                                                                                                                                              • Workers by EstablishmentPlace of Posting Interviewed PTV
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed SNGPL
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed ZTBL
                                                                                                                                                                                                                                  • Financial Benefits of Workers (by Unionsrsquo Efforts)
                                                                                                                                                                                                                                  • Non Financial Facilities of Workers (by Union Efforts)
                                                                                                                                                                                                                                    • Abbreviation
                                                                                                                                                                                                                                      • Explanation
                                                                                                                                                                                                                                      • FREQ or Freq
                                                                                                                                                                                                                                      • Frequency
                                                                                                                                                                                                                                      • IND
                                                                                                                                                                                                                                      • Indifferent
                                                                                                                                                                                                                                      • ORG
                                                                                                                                                                                                                                      • Organization
                                                                                                                                                                                                                                      • RES
                                                                                                                                                                                                                                      • Respondents
                                                                                                                                                                                                                                      • S
                                                                                                                                                                                                                                      • Satisfied
                                                                                                                                                                                                                                      • US
                                                                                                                                                                                                                                      • Un-satisfied
                                                                                                                                                                                                                                      • UN
                                                                                                                                                                                                                                      • Union
                                                                                                                                                                                                                                      • VAR
                                                                                                                                                                                                                                      • Variables
                                                                                                                                                                                                                                      • VS
                                                                                                                                                                                                                                      • Very Satisfied
                                                                                                                                                                                                                                      • VUS
                                                                                                                                                                                                                                      • Very Un-satisfied
                                                                                                                                                                                                                                      • WT or Wt
                                                                                                                                                                                                                                      • Weight or weighted
                                                                                                                                                                                                                                      • Y
                                                                                                                                                                                                                                      • YES
                                                                                                                                                                                                                                      • N
                                                                                                                                                                                                                                      • NO
                                                                                                                                                                                                                                      • Σ
                                                                                                                                                                                                                                      • Sum Total
                                                                                                                                                                                                                                        • Name of Variable
                                                                                                                                                                                                                                          • Workers Education
                                                                                                                                                                                                                                          • We
                                                                                                                                                                                                                                          • Appendix ndash F-1
                                                                                                                                                                                                                                          • Responses of Union Workers and Management of ARL
                                                                                                                                                                                                                                              • Top
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Appendix ndash F-2
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of CDA
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of IESCO
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                  • Responses of Union Workers and Management of KTM
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTCL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTV
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of SNGPL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Essentiality of Unions Inter Unions Relations and
                                                                                                                                                                                                                                                    • (Questionnaire-1 Question 18amp 19)
                                                                                                                                                                                                                                                    • About Work Council and Unionistsrsquo Training
                                                                                                                                                                                                                                                    • About Charter of Demand and Wage Cut
                                                                                                                                                                                                                                                        • Appendix G-1
                                                                                                                                                                                                                                                        • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                        • PERSONAL INFORMATION
                                                                                                                                                                                                                                                          • If yes how much amount-------------------------- How many times a year-------------------
                                                                                                                                                                                                                                                          • How---------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • Appendix G-2
                                                                                                                                                                                                                                                              • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR WORKERS-2
                                                                                                                                                                                                                                                                  • Personal Data
                                                                                                                                                                                                                                                                    • If yes then how-------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                      • Appendix G-3
                                                                                                                                                                                                                                                                      • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                      • QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3
                                                                                                                                                                                                                                                                        • UNION INFORMATIOM
                                                                                                                                                                                                                                                                          • 3- Did union demand for workers Job security -------Yes-----------No---------
                                                                                                                                                                                                                                                                            • 18 Is there work council in the organization Yes-------No----
                                                                                                                                                                                                                                                                                • Appendix G-4
                                                                                                                                                                                                                                                                                • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR TEMPORARY WORKERS-4
                                                                                                                                                                                                                                                                                  • PAKISTANrsquoS PERSPECTIVE

ii

DISSERTATION AND DEFENSE APPROVAL FORM

The undersigned certify that they have read the following dissertation examined the defense are satisfied with the overall exam performance and recommend the thesis to the Faculty of Advanced Integrated Studies amp Research for acceptance Dissertation Title Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective Submitted By Muhammad Tariq Khan Registration 135-PhDHRD2003 Doctor of Philosophy Human Resource Development Dr Zafar Mueen Nasir Name of Research Supervisor Signature of Research Supervisor Prof Dr Shazra Munnawar ______________________________ Name of Dean (FAISampR) Signature of Dean (FAISampR) Prof Dr Aziz Ahmad Khan ______________________________ Name of Rector Signature of Rector

__________________ Date

iii

CANDIDATE DECLARATION FORM I Muhammad Tariq Khan_____________________________________________

Son of Mr Chanan Khan

Registration No 135-PhDHRD2003

Discipline Human Resource Development

Candidate of Doctor of Philosophy at the National University of Modern Languages do hereby declare that Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective submitted by me in partial fulfillment of PhD degree in disciplinedepartment Faculty of Advanced Integrated Studies amp Research is my original work and has not been submitted or published earlier I also solemnly declare that it shall not in future be submitted by me for obtaining any other degree from this or any other university or institution I also understand that if evidence of plagiarism is found in my dissertation at any stage even after the award of a degree the work may be cancelled and the degree revoked August 11 2008 ____________________ Date Signature

Muhammad Tariq Khan Name

iv

ABSTRACT

Dissertation Title Industrial Relations Role of Labor Unions in Organizational

Climate in Pakistans Perspective

Purpose of this research was to explore the aspects of HRD beyond education and

training and to explore the role of labor unions in HRD by looking at the improvement in

productivity and harmony at work place due to them For this purpose survey

questionnaires on five point Likert scale ranging from very unsatisfied to very satisfied

were designed and pre-tested The study was carried out by taking a sample of 10

unionized organizations In these organizations 525 unionized workers 90 temporary

non-unionized workers and employers were interviewed to collect information on role of

labor unions in securing benefits for workers and motivating them for higher productivity

and peace at work place Performance of unions was estimated in two aspects One

aspect was their success in securing benefits for workers and other was in protecting the

interest of employers The success of unionsrsquo in exerting efforts for securing benefits for

workers was measured by satisfaction of workers which was dependent on15 variables

ie wage rise fringe benefits job security time decrease health facilities children

education over time payment working conditions leaves increase post retirement

benefits recreation facilities training opportunities decrease of wage differences

informing workers about their rights and workersrsquo education The success of unionsrsquo in

exerting efforts for protecting employersrsquo interest was measured by satisfaction of

employers which was dependent on two variables ie productivity increase and work

place harmony The results of the study show that unions proved successful in securing

benefits for workers and protecting the interest of employers though performance of

unions needs to be improved by exerting more efforts

v

TABLE OF CONTENTS

Page Inner title page i

Dissertation and Defense approval form ii

Candidate Declaration Form iii

Abstract iv

Table of Contents v

List of Figure xi

List of Tables xiii

List of Acronyms xvi

Acknowledgements xix

1 INTRODUCTION 1

11 BACKGROUND OF STUDY OF HUMAN RESOURCE 1

DEVELOPMENT

12 EXISTING PROBLEM 2

13 PURPOSE OF RESEARCH 4

14 RESEARCH QUESTIONS 4

15 SIGNIFICANCE OF THE RESEARCH 6

16 LIMITATIONS OF RESEARCH 6

2 LITERATURE REVIEW 7

21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT 7

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS 10

221 Emergence of Labor Unions 12

222 Unionization Problem 12

2221 Opposition of Unionization by State 13

2222 Opposition of Unionization by Employer 16

223 Why Workers Join Unions 17

23 UNIONS ROLE FOR WORKERS BENEFITS 19

231 Wage Rise 21

vi

232 Reduction in Wage Inequality 24

233 Fringe Benefits 25

234 Job Security and Employment 26

235 Time Reduction (Duty Hours) 28

236 Payment of Over Time 29

237 Paid Leaves 29

238 Working Condition 30

239 Health Care and Social Security 31

2310 Post Retirement Benefits (Pensions) 33

2311 Training Opportunities 34

2312 Workersrsquo Education 36

2313 Recreational and Social Services 37

2314 Children Education 39

2315 Workers Awareness 39

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39

241 Productivity Efficiency and Profitability 39

242 Work Place Harmony and Cooperative Role 46

25 STRATEGIES AND TACTICS OF UNIONS 50

251 Source of Strength of Unions 50

2511 Unionsrsquo Density and Their Strength to Effect 50

252 Peaceful Means of Achieving Objectives 51

253 Violent Means 52

26 CORRUPTION OF UNIONS 53

261 Corruption and Selfishness of Officials 53

262 Financial Corruption 53

2621 Embezzlement Examples 56

263 Unionsrsquo Officers Monopoly 57

264 Bribes (Extortion and Pay-off) 58

265 Sound Labour Relations at the Workplace no Important 59

Concern of Employers and Unions

vii

3 HISTORY AND LEGAL FRAME WORK OF UNIONIZATION 60

IN PAKISTAN

31 HISTORY OF LEGISLATION 61

311 Laws Permitting Establishment of Unions 62

312 Laws for Settlement of Disputes 64

313 Industrial Relations Ordinance 1969 64

32 RIGHT OF UNIONIZATION 66

321 United Nationsrsquo Declaration of Human Rights 66

322 ILO Conventions 67

323 Constitution of Pakistan 67

33 PRESENT ENFORCED LAWS 68

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo 68

332 Labor Laws Granting Rights 72

3321 Workmen Compensation Act 1923 72

3322 Factories Act 1934 72

3323 Payment of Wages Act 1936 73

3324 The minimum Wages Ordinance 1961 73

3325 Social Security Ordinance 1965 73

3326 The industrial and commercial Employment (standing

order) Ordinance 1968 74

3327 The companies Profit (workersrsquo participation)

Act 1968 74

3328 The Shops and Establishments Ordinance 1969 74

3329 The Minimum Wages for Unskilled Workers 74

Ordinance 1969

33210 Workers Welfare fund Ordinance 1971 75

33211 Workers Children (Eucation) Ordinance 1972 75

33212 Employees Cost of Living (Relief) Act 1973 75

33213 Employees Old Age Benefit Act 1976 76

333 Labor Policies 76

3331 First Policy (1955) 76

viii

3332 Second Policy (1959) 77

3333 Third Policy (1969) 77

3334 Fourth Policy (1972) 78

3335 Fifth Policy (2002) 79

3336 Labor Protection Policy 2005 81

3337 Labor Inspection Policy 2006 82

4 RESEARCH METHODOLOGY 84

41 THEORETICAL FRAME WORK 84

411 Research Model and Variable Formation 84

412 Research Hypotheses 91

42 POPULATION AND SAMPLING 91

321 Stage-lsquoIrsquo Sampling of Organizations 91

422 Stage-lsquoIIrsquo Sampling of Respondents 92

4221 Sampling of Union Office Bearers 92

4222 Sampling of Permanent (Unionized) workers 93

4223 Sampling of Management 93

4224 Sampling of Temporary (Non-unionized) Workers 93

43 DATA COLLECTION INSTRUMENTS 93

431 Questionnaires and Their Structure 93

44 PREPARATION OF SATISFACTION LEVEL SCALE 97

45 PILOT STUDY 97

46 CODES AND ABBREVIATIONS 97

47 STATISTICAL METHODS APPLIED 98

471 Percentage 98

472 Arithmetic Mean 98

473 Chi Square (χ2) 100

474 Comparison 101

48 CALCULATIONS BY APPLYING STATISTICAL METHODS 101

481 Percentage Calculation of Yes No Responses 101

482 Means Calculations 101

483 Chi Square Applications 103

ix

484 Comparison Application 103

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103

BENEFITS

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105

5 DATA ANALYSIS AND RESULTS 106

51 DATA PRESENTATION 106

511 Organization-Wise Description of Respondents 106

5111 Description of respondents of ARL 107

5112 Description of respondents of CDA 107

5113 Description of respondents of IESCO 107

5114 Description of respondents of KTM 108

5115 Description of respondents of OGDCL 108

5116 Description of respondents of PCP 108

5117 Description of respondents of PTCL 108

5118 Description of respondents of PTV 109

5119 Description of respondents of SNGPL 109

51110 Description of respondents of ZTBL 109

51111 Workers responses of the questions about essentiality

inter unions relations and unions status as compared 109

to past

51112 Unionsrsquo office bearersrsquo responses of the questions 110

about work council charter of demand and unionistsrsquo

training

51113 Management responses about work council charter 110

of demand and wage cut

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA 110

521 Organizational Means of Workersrsquo Variables 111

522 Organizational Means of Managementrsquos Variables 122

53 VARIABLE-WISE ANALYSIS 132

531 Mean Calculation of Variables Measuring Unionsrsquo Efforts 133

for Workersrsquo Benefits

x

5311 Combined Mean of All Workers Variables 163

532 Chi Square Test Application 166

533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED 190

WORKERS

56 WORKERS RESPONSES FOR QUESTIONS ABOUT

ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS 193

STATUS AS COMPARED TO PAST

6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195

61 DISCUSSION 195

611 Organization-Wise Performance of Unions 195

6111 ARL Union 195

6112 CDA Union 196

6113 IESCO Union 196

6114 KTM Union 196

6115 OGDC Union 197

6116 PCP Union 197

6117 PTCL Union 198

6118 PTV Union 198

6119 SNGPL Union 198

61110 ZTBL Union 199

612 Variable-Wise Performance of Unions 199

6121 Workers relating variables 200

6122 Employer relating variables 204

613 Comparison with Non-Unionized Workers 205

62 ANSWERS OF RESEARCH QUESTIONS 207

63 CONCLUSIONS 209

64 SUGGESTIONS AND RECOMMENDATIONS 210

65 SUGGESTIONS FOR FURTHER RESEARCH 212

REFERENCES 213

APPENDICES 229

xi

LIST OF FIGURES Figure No Page 1 Showing sequence of variables effect 84 2 Pie Diagram - Satisfaction Level of Workers on Wage 134

3 Pie Diagram - Satisfaction Level of Workers Financial Benefits 136

4 Pie Diagram - Satisfaction Level of Workers on Job Security 138

5 Pie Diagram - Satisfaction Level of Workers on Time Reduction 140

6 Pie Diagram - Satisfaction Level of Workers on Health Facilities 142

7 Pie Diagram - Satisfaction Level of Workers on Children Educat 144

8 Pie Diagram - Satisfaction Level of Workers on Overtime Pay 146

9 Pie Diagram - Satisfaction Level of Workers on Working Cond 148

10 Pie Diagram - Satisfaction Level of Workers on Leave Facilities 150

11 Pie Diagram - Satisfaction Level of Workers on Post Retire Bfts 152

12 Pie Diagram - Satisfaction Level of Workers on Recreation Fac 154

13 Pie Diagram - Satisfaction Level of Workers on Training Oppor 156

14 Pie Diagram - Satisfaction Level of Workers on Dec Wage Diff 158

15 Pie Diagram - Satisfaction Level of Workers on informing Right 160

16 Pie Diagram - Satisfaction Level of Workers on Workers Educat 162

17a Diagrammatic Presentation of Means of Workers Variables 165

(Bar Diagram)

xii

17b Diagrammatic Presentation of Means of Workers Variables 165

(Line Graph)

18 Pie Diagram - Satisfaction Level of Employers on Productivity 184

Efficienc Increase

19 Pie Diagram - Satisfaction Level of Employers on Workplace 184

Harmony

20a Diagrammatic Presentation of Means of Employers Variables 188

(Bar Diagram)

20b Diagrammatic Presentation of Means of Employers Variables 188

(Line Graph)

21 Diagrammatic Presentation of success of unions 189

(Success Matrix)

xiii

LIST OF TABLES

Table Page

1 Responses of Workers of ARL Organizational Mean Calculation) 112

2 Responses of Workers of CDA (Organizational Mean Calculation) 113

3 Responses of Workers of IESCO (Organizational Mean Calculation) 114

4 Responses of Workers of KTM (Organizational Mean Calculation) 115

5 Responses of Workers of OGDCL (Organizational Mean Calculation) 116

6 Responses of workers of PCP (Organizational Mean Calculation) 117

7 Responses of workers of PTCL (Organizational Mean Calculation) 118

8 Responses of workers of PTV (Organizational Mean Calculation) 119

9 Responses of workers of SNGPL (Organizational Mean Calculation) 120

10 Responses of workers of ZTBL (Organizational Mean Calculation) 121

11 Responses of Management of ARL 122

12 Responses of Management of CDA 123

13 Responses of Management of IESCO 124

14 Responses of Management of KTM 125

15 Responses of Management of OGDC 126

16 Responses of Management of PCP 127

17 Responses of Management of PTCL 128

18 Responses of Management of PTV 129

19 Responses of Management of SNGPL 130

20 Responses of Management of ZTBL 131

21 Mean calculations-wage rise (Wris) 133

22 Mean Calculations - Bonus (Financial Benefits) (Fbft) 135

23 Mean Calculations - Job Security (J-sec) 137

24 Mean Calculations - Time Reduction (Td) 139

25 Mean Calculations - Health Facilities (Hfac) 141

xiv

26 Mean calculations- Children Education (Ced) 143

27 Mean Calculations - Over Time Payment (Ot) 145

28 Mean Calculations - working conditions (Wcon) 147

29 Mean Calculations- leaves facility (Linc) 147

30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb) 151

31 Mean Calculations -Recreation facilities (Rfac) 153

32 Mean Calculations - training opportunities (Top) 155

33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) 157

34 Mean calculations - informing about rights (Ir) 159

35 Mean calculations - workersrsquo education (We) 161

36 Summary of means of workers variables and calculation of combined 163

mean

37 Chi square calculations wage rise (Wris) 167

38 Chi square calculations - Bonus (financial benefits) (Fbft) 168

39 Chi square calculations - Security (Jsec) 169

40 Chi square calculation - Time reduction (Td) 170

41 Chi square calculations - Health facilities (Hfac) 171

42 Chi square calculations - Children education (Ced) 172

43 Chi square calculations - Overtime payment (Ot) 173

44 Chi square calculations - Working conditions (Wcon) 174

45 Chi square calculations - Leaves facility (Linc) 175

46 Chi square calculations - Post retirement benefits facility (Prb) 176

47 Chi square calculations - Recreation facilities (Rfac) 177

48 Chi square calculations - Training facilities (Top) 178

49 Chi square calculationsndashDecreasing workers officers wage salary gap(Wdf)179

50 Chi square calculations - Informing about rights (Ir) 180

51 Chi square calculations - Workersrsquo education (We) 181

52 Calculation of mean of Management responses for unionsrsquo 183

efforts for Productivity Efficiency increase (Pin)

xv

53 Calculation of mean of Management Responses for

Workplace Harmony (Wph) 185

54 Calculation of Combined Mean of Management Responses (Se) 187

55 Facilities of Temporary Workers (Not Union Members) 190

56 Facilities of Permanent Workers (Union Members) 191

57 Essentiality Inter unions Relations and Unions status Compared to Past 193

xvi

LIST OF ACRONYMS

AFL-CIO- American Federation of Labor ndash Congress of Industrial Organizations

AFSCME- American Federation of State and County Municipal Employees

BEST- Basic Education and Skills Training

CBA ndash Collective bargaining Agent

CLR - Campaign for Labor Rights

CC OO-the Confederacion Sindical de Comisiones Obreras(Spain)

CFDT - Confederation Francaise Travail (Niger)

CNSS- National Social Security Scheme (Niger)

CNT- Confederation Nigeacuterienne du Travail

COSATU - Congress of South African Trade Unions

CO2- carbon dioxide

CROC- Revolutionary Confederation of Workers and Peasants (Mexico)

CSD- Commission on Sustainable Development (UNO)

DGTU- Director General of Trade Union (Malaysia)

ECEC ndash Employersrsquo Cost for Employeesrsquo Compensation

EPI- Economics Policy Institute

FAO- Food amp Agricultural Organization

FMLA- Family Medical Leave Act (USA)

xvii

HKDF- Hong Kong Democratic Federation

ILO- International Labor Organization

ITF -International Transport Workersrsquo Federation (ITF)

LDC ndash Lower Division Clerk

LIUNA- The Laborers International Union of North America (USA)

LO- Landsorganizationen i Sverige (Swedish Federation of Trade Unions)

LPL Laborers Political League

MNC- Multi National Corporation

NLRB- National Labor Relation Board (USA)

NMU - National Maritime Union

NTUC National Trade Unions Confederation (Singapore)

OECD- Organization for Economic Cooperation and Development

OSHA- Organizational Safety and Health Act (USA)

PSI- Public Services International

PWF- Pakistan Workersrsquo Federation

SDF- Study Development Fund (Singapore)

SRP ndash Skill Re-development Program (Singapore)

TUAC-Trade Union Advisory Committee to the OECD (TUAC)

TUC - Trade Union Congress

UDC - Upper Division Clerk

UGT- Union General de Trabajadores (SPAIN)

xviii

UI-Unemployment insurance

UK ndash United Kingdom

UNDP United Nations Development Program

UNEP- United Nations Environmental Program

USA ndash United States of America

USTN - Union des Syndicats des Travailleurs du Niger

WERS ndash Workplace Employee Relation Survey (USA)

WHO- World Health Organization

WISE- Workers Improvement through Secondary Education (Singapore)

WRTP Wisconsin Regional Training Partnership

WTO- World Trade Organization

xix

ACKNOWLEDGEMENTS

All glory and praise to God Almighty Who bestowed his blessing upon me in my

life and now enabled me to accomplish this research work

I am greatly indebted to my honorable supervisor Dr Zafar Mueen Nasir Chief of

Research (PIDE) presently Director (Policies) Policy Planning Cell Labor and

Manpower Division Ministry of Labor Manpower and Overseas Pakistanis Government

of Pakistan whose encouraging kind valuable and timely guidance enabled me to

complete this study

I feel pleasure to place record of my deep sense of thankfulness to Professor Dr

Rasheed Ahmed Khan Dean Faculty of Management Sciences and Prof Dr Allah

Bakhsh Dean Faculty of Education National University of Modern Languages Islamabad

Prof Dr Sarfraz Ahmed Mian Chairman Department of Economics University of Arid

Agriculture Rawalpindi Prof Dr Irshad Ahmed Department of Statistics Allama Iqbal

Open University Islamabad and Dr Khalid Masud Visiting Faculty Member Allama

Iqbal Open University Islamabad for their guidance in this research

I am heavily indebted to my family for the time they sacrificed for me during my

studies Their constant support and encouragement helped me to complete this difficult

task

No acknowledgement could even adequately express the thankfulness to my

friends who have always been encouraging me for educational achievements

At the end I pay thanks to all those who were directly or indirectly involved in the

completion of my thesis

CHAPTER 1

INTRODUCTION

When planning for one year theres nothing better than planting grain when

planning for ten years theres nothing better than planting trees when

planning for a lifetime theres nothing better than planting men

Chinese philosopher Guanzi (551 - 479 BC)

11 BACKGROUND OF STUDY OF HUMAN RESOURCE DEVELOPMENT

Human Resource Development is an important discipline of present time It is

considered by scholars of Business Administration as a sub discipline of Human

Resource Management (HRM) concerned with developing productive skills by

imparting them training Werner and DeSimone (2006 p5) defined Human Resource

Development (HRD) as ldquoa set of systematic and planned activities designed by an

organization to provide its members with the opportunities to learn necessary skills to

meet current and future job demandsrdquo Werner and DeSimone (2006) described HRD

as a function of HRM According to Rao (1995) the scope of HRD is extended at one

side to developing competencies of human resource by enhancing knowledge

building skill changing attitude and teaching values and at other side creation of

conditions through public policy programs and other interventions to help people to

apply these competencies for their own and othersrsquo benefits and making things

happen Bacchus (1992) asserted that the ultimate goal of HRD in any country is lsquoto

improve the quality of life of all itrsquos people and not merely concerned with providing

necessary skills to individuals The concept of HRD deals with many facets of

development of individuals including their physical intellectual emotional political

and spiritual aspects

People earn their food and living by working and engage themselves in

productive activities for which a combination of both physical and intellectual

2

development is important Physical development comes from good nourishment and

medical care Intellectual development comes through the process of education and

socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life Thus all aspects of development are integral part

of HRD According to Rao (1995) ultimately what is important is human satisfaction

and the quality of life Developing people is the essence of any HRD effort and it is an

important goal of all other development activities (plans policies programs

establishment of new structures mechanism) All forms of development (economic

technological ecological agricultural industrial etc) are ultimately meant to serve

people in terms of improving their happiness through better quality and standards of

life

The focus of the present study is on improvement of quality of life of workers

due to unionrsquos active role in negotiating higher wages and good working conditions

for them because workers of any organization have weak bargaining power as

employees without their collective representation by a labor union Labor unions exert

their pressure to convince or compel the employer to extend financial benefits ie

good wages bonuses and allowances and non financial benefits ie health facilities

better working conditions recreation facilities training opportunities job security

facilities for education reasonable daily working hours and paid leaves

These facilities improve the living conditions of workers who in turn exert

more efforts to enhance their productivity and profit of the organization

12 EXISTING PROBLEM

Presently in Pakistan the supply of labor is more than its demand causing

unemployment in the country The unemployment rate in Pakistan is estimated as 53

percent in 2006 -07 (LFS 2007) Due to surplus supply of labor its price (wagesalary)

3

is low Government has raised minimum wage recently to Rs 6000- per month which

was only Rs 4600- per month

With this limited income workers can not meet their needs making them

healthy and motivated to work efficiently and dedicatedly Management builds the

skills of workers by training to increase their performance and efficiency but even if

workers are skillful and well trained their performance may not be up to mark of

satisfaction until they are not physically healthy mentally satisfied and motivated or

developed in HRD context But employers usually do not pay attention towards this or

do not desire to pay good remuneration or provide better atmosphere in the pretext of

higher labor cost Unions try to convince or compel the employer for better

remuneration and better atmosphere

If unions are playing a role by protecting the rights of workers and making

efforts to secure benefits for them then the membership of unions must increase but a

declining trend in membership of unions has been observed globally Freeman and

Medoff (1984) Hyman (1999) (Jose 2000) Hirsch and Schumacher (2000) Machin

(2000) Bryson (2001) Saavedra and Torero (2002) Ebbinghaus (2002) Knox (2004)

and Eisenbrey (2007)

The question is (1) why workers are not joining labor unions (2) Are unions

not protecting the rights of workers or exerting efforts for securing benefits for them

A few research studies have looked at the negative image of the labor unions

Ghayur (1996-a) has pointed out that quiet often labor unionism is seen as undesirable

intervention in the smooth functioning of organizations with out realizing the positive

contribution it could make towards industrial peace harmony and progress Employers

allege that labor unions only talk about workersrsquo rights and ignore their obligations

They believe that unions are largely responsible for low productivity and lower

production

4

13 PURPOSE OF RESEARCH

The purpose of this research is to answer three questions

1 Are unions protecting the rights of workers or exerting efforts for

securing benefits for them

2 Do labor unions play any role in promoting physical intellectual and

emotional development of workers and

3 Do unions put any effort to enhance the productivity of the workers and

improve peace at place of work

The effectiveness of trade unions in promoting HRD is determined by some of

the benefits workers receive due to unions Particularly the focus is on the role of

unions in

1 Securing financial benefits for workers in the form of wage rise

bonuses and other allowances

2 Securing non financial benefits for workers like health facilities

workersrsquo education better working conditions decrease in working

hours increase in annual leaves training opportunities etc

3 Giving the workers sense of awareness about their rights

4 Improving the productivity or efficiency of the employees

5 Making harmony at work place between the management and

employees and making efforts for a peaceful industrial atmosphere

14 RESEARCH QUESTIONS

1 To what extent the unions in Pakistan are effective in development of

HR by securing benefits for workers such as

i) Wage rise

ii) Fringe benefits like Bonus

5

iii) Job Security

iv) Time decrease or resistance against time increase

v) Health or Medical treatment facilities

vi) Education facility

vii) Overtime payment

viii) Better working conditions

ix) Leaves increase or resistance against leaves decrease

x) Post-retirement benefits like pension

xi) Arranging recreation facilities

xii) Training opportunities

xiii) Decreasing wages inequality

xiv) Informing workers about their rights

xv) Children education facility

2 To what extent the unions in Pakistan are effective in promoting

employersrsquo interest by developing HR by putting efforts in

i) Motivating workers for increasing productivity improving

efficiency

ii) Improving peace and harmony at workplace

The answers of these questions will determine the effectiveness of unions in

promoting Human Resource Development (HRD)

6

15 SIGNIFICANCE OF THE RESEARCH

The findings conclusions and recommendations of the study will be beneficial

for

1- Governmentrsquos labor policy maker to frame out workers friendly

policies

2- Employers while deciding workers benefits

3- Unions while demanding facilities for workers

4- Workers while making decision of electing their unionCBA

5- Industrial Relations researchers to search further in the matter

16 LIMITATIONS OF RESEARCH

The limitations of the study are

1 The sample covered in the study is only individuals of Rawalpindi Islamabad

and therefore the results can not be generalized to whole of Pakistan

2 The role of trade unions in promoting HRD is measured through employeersquos

benefits and that too is based on the responses of the workers which may

introduce biasness in the results

3 The scale used in the questionnaire for measuring performance of unions is

arbitrary and that too can introduce bias

CHAPTER 2

LITERATURE REVIEW

lsquoHealth and strength physical mental and moral are the basis of industrial wealth while conversely the chief importance of material wealth lies in the fact that when wisely used it increases the health and strength physical and mental and moral of human race

Alfred Marshall (1890) quoted in World Bank Report (1991) 21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT

The ultimate goal of human resource development is to improve the quality of

life of people The human resource development strategy is not merely providing

necessary skills and enabling workers to secure employment rather it encompasses all

those activities which lay the foundation for a fuller and more productive utilization of

the total human resources The concept of HRD implies physical intellectual

emotional political spiritual and all other facets of human development Food

nutrition and freedom from disease are important inputs which make people

productive members of a nation Physical development comes from good nourishment

and medical care Intellectual development comes through the process of education

and socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life and ensure his comfort Thus all forms of

development of people can be included in the definition of HRD Rao (1995) wrote

8

that HRD leads to human satisfaction and the quality of life which is the ultimate goal

Developing people is an important goal of all development activities (plans policies

programs establishment of new structures mechanism) These developments

(economic technological ecological agricultural industrial etc) are ultimately meant

to serve people in terms of improving their happiness through better quality and

standards of life

Human resource development holds the key for economic development by

enabling people to become more productive because economic development depends

upon level of industrial activity which is dependent upon the productivity of human

resource Productivity of human resource depends upon its competencies and

conditions (through public policy programs and other interventions to help the

people) to apply these competencies These conditions are Physical fitness and

motivation Fashoyin (1997) opined that the workers in competitive economic

environment become more important agent in mobilizing all factors of production

towards achievement of a competitive advantage But this is possible by motivated

workforce And motivation of the workforce to commit itself to work and maintain

uninterrupted and effective operations further depends on satisfaction of workers

Worker would be healthy when they are well nourished and physically fit and

motivated when they enjoy better quality and standard of life This would be achieved

when they would receive proper share in the production or development in the form of

increased income or financial benefits enabling them to purchase potent diet

comfortable working conditions proper working hours leave for leisure recreational

facilities and self respect

Rao (1995) is of the view that productivity is determined by the number of

hours of work and its intensity And undernourished or sick person can not work long

or properly Absence of medical facilities further reduces productivity Increased

expenditure on food to the extent it raises productivity can be termed as investment

Better diet housing and control of communicable diseases have raised the quality of

life everywhere

9

A World Bank (1991) study quoted a text of 1890 of Alfred Marshall who

wrote that lsquohealth and strength physical mental and moral are the basis of industrial

wealth while conversely the chief importance of material wealth lies in the fact that

when wisely used it increases the health and strength physical and mental and moral

of human race By conducting some studies World Bank (1991) in its report

concluded that better health and nutrition raise workersrsquo productivity decrease the

number of days they are ill and prolong their potential working lives In Sierra Leone

a 10 percent increase in calories in-take of farm workers consuming 1500 calories a

day raised their output by 5 percent Similar results have been found among Kenyan

road construction workers By reducing morbidity and debility the malaria eradication

program in Sri Lanka in the 1940s led to a ten percent rise in incomes A study of

Basta et al (1979) on the rubber plantation workers in Indonesia revealed that

treatment of anaemic workers with iron tablets for a period of 60 days resulted in an

increase in productivity by 15 to 20 percent and the per capita cost of these tablets was

$ 008 Levin (1986) found that out put increases by about 10 to 20 percent for every

10 percent rise in haemoglobin level

Rao (1995) mentioned study of Behrman and Deolalikar (1998) who came to

the conclusion that lsquoNutrientrsquo intake might affect productivity without altering

indicators of health status because nutrient changes may be transferred largely to

energy expenditure change including that are productivity related

World Bank (1991) concluded after analysis of household survey data from

nine countries suggesting that economic effects of illness may be substantial An

average adult worker in Peru might expect to be ill 45 days a month and misses about

one day of work as a result in Ghana the corresponding figures were 36 and 13

days In the United States workers aged between 18 and 44 miss on an average one

quarter of a dayrsquos work in a month

If workers are unsatisfied they will quit the organization Quah (1993)

analyzed the studies of human resource development in four countries ie Japan

Singapore South Korea and Taiwan and concluded that comprehensive reforms are

needed in public personnel management in the direction of attracting retaining

10

developing and utilizing competent employees Rao (1995) expressed that people will

be un-satisfied and lose motivation if not properly paid They will quit the

organizations causing increase of turnover and leading to increased expenditure of

selection recruitment and training

From the above discussion it is revealed that HRD is to develop competencies

of the people and improving their health and quality of life by providing them better

share in the income of country or any firm in the form of better salary and other

financial benefits (bonus health allowance education allowance recreation

allowance etc) boasting their motivation by reducing the remuneration gapes between

different categories of people providing them more leisure by reducing working

hours comforting their lives by bettering work places and developing socially by

giving them representation freedom of expression and satisfying them by providing

security of job and removing their fears

For expressing the importance of HRD Tan (1996) quoted the saying of a

Chinese philosopher Guanzi (551 - 479 BC) that

When planning for one year theres nothing better than planting grain

when planning for ten years theres nothing better than planting trees

when planning for a lifetime theres nothing better than planting men

In his own words Guanzi explained that grain is something that is planted once

and produces only a single harvest Trees are planted once but may produce ten

harvests Men are things that are planted once but may produce a hundred harvests

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS

Workers or labor class is the major and most important human resource of any

country and they are developed through better quality and standards of life But

workers remained undeveloped because of being under privileged deprived and

victim of the exploitation of employer Khan (1992) mentioned that labor was

considered as a commodity and was subject to economic laws of supply and demand

11

Conditions of workers remained area of concern for centuries particularly after

the industrial revolution No doubt industrialization as a consequence of industrial

revolution was most forceful process in the known history that brought many

comforts in human life But it is a very bitter fact that this revolution also brought

problem of exploitation of workers who became enslaved to the dictates of machines

and capital owners under their profit motives According to Shafiq-ur-Rehman (2003)

employers exploited workers for maximizing profit Colman (2000) wrote about USA

that the industrial revolution for the first time brought thousands of women and

children in the workforce In New England textile mills used to employ young

unmarried daughters of farmers and these textile lsquomill girlsrsquo often worked 12 to 15

hours a day lived in strictly supervised company boarding houses had to be silent

during work and could be fired for using profane or improper language

Situation is still bad at some places and according to ICFTU (nd) report in

Guatemala in some factories workers usually work for 9-10 hour a day and paid

between $1 and $2 per day and sometimes they are forced to work as long as 18 hours

In some factories to meet the demand of large orders workers are given

amphetamines so that they can work 60 hours without stopping

Similarly Amnesty International (2002) also reported that in China the plight

of workers is serious and there are widespread violation of international standards

causing serious injuries and deaths

One reason of these hardships in the words of George (2004) is that a majority

of working people possess labor as their only resource to carry on with their lives

There was a need of a system encompassing institutions dedicated for the

protection of workers and solution of their problems as well as to maintain industrial

peace

Therefore institution appeared in the form of labor unions and system appeared

in the form of Industrial Relations

12

Industrial relations is a tripartite system having government employers and

labor unions as its three components The Wikipedia defines this as

ldquoField of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union

Governments set the framework for labor relations through legislation and

regulationrdquo (Wikipedia-a)

221 Emergence of Labor Unions

The exploitation of workers led them to unite for the solution of their problems

at a platform This platform was labor union In the words of Brohawn (nd) the union

was democratic societys original answer for addressing injustices at the workplace

which attended the birth of the Industrial Revolution In fact unionism was born to

bring social and economic justice for working people Ehrenberg and Smith (1985)

asserted that labor unions are the organizations whose primary objectives are to

improve the pecuniary and non pecuniary conditions of their members Workers

expected their unions to fight for their rights by organizing and financing strikes

According to Shafiq-ur-Rehman (2003) workers formed unions which had to adopt a

confrontational approach towards the employersAbout influence of unions Thomas

(1999) wrote that trade unions are a large organized group in civil society which

brings a unique contribution to the development of community because of direct

involvement with economic systems of production and distribution They also

influence the course and content of employment and social and economic policies

What were and still are the problem of union making are discussed in

following lines

222 Unionization Problem

Emergence of unions in every country and society was and is still a difficult

evolutionary process Literature has shown that organization of workers was not an

easy task and unions had to bear the wrath of state and employer and those whose

13

interests were against unionization Unionization is the democratic right which has

been acknowledged in UNO declaration of human rights and by ILO conventions

2221 Opposition of unionization by state

Rizvi (1973) a Pakistani author wrote that government is one of the important

parties in the industrial labor relations especially when there is high elasticity of

demand but low elasticity of supply of labour But what has been the role of

governments is narrated in lines below

Ghayur (1996-a) wrote about Pakistan that State has also erected barriers by

framing laws discouraging to unionization to maximum extent by imposing difficult

conditions to fulfill particularly in registration Government of Pakistan has

established Export processing Zone (EPZ) in Karachi which is exempted from the

application of certain labor laws especially the right to form a union and to go for a

strike Ghayur also wrote that in Pakistan unionization and collective bargaining is not

permitted to all public sector employees and activity has been brought under Essential

Services Act in many public sector organizations

According to report on lsquoHuman Development in South Asia (2003)rsquo in

Pakistan lsquothe Essential Services Management Act of 1952rsquo was the first hurdle in the

history of the unionization process of Pakistan It restricts the freedom of association

and collective bargaining rights of various groups of workers Employees of Pakistan

International Airlines (PIA) Pakistan Television Corporation and the Civil Aviation

Authority (CAA) as well as workers in postal teaching electric supply and radio

stations can form unions but cannot join a strike The workers in the EPZs are also

denied their trade union rights in Pakistan Export Processing Zones Authority

Ordinance (EPZAO) of 1980 and Export Processing Zone Rules (EPZR) of 1982

exempt the workers in EPZs from the provisions of IRO Workers in EPZs cannot

establish trade unions bargain collectively or organize a strike

Similarly Pakistani researchers Abbas and Hussain (2007) wrote about

Pakistan that a range of restrictions deter the activities and effectiveness of union

organizers One of such laws that restrict trade union activities is the Essential

14

Services Maintenance Act of 1952 (ESA) which includes government services and

State Owned Enterprises (SOEs) like power generation and transmission energy

production ports and the state-owned airline This law generally invoked to ban

strikes and is also used to hold back the right to collective bargaining

Human Rights Watch (1998) reported that in China making of independent

trade unions was illegal union makers were suppressed by the government and their

leaders were imprisoned There is one official union the All China Federation of

Trade Unions (ACFTU) which is under the control of the Communist Party which

appoints all union officials All workplace unions must be affiliated to the ACFTU

Amnesty International (2002) also reported that in China independent labor unions are

not permitted and All China Federation of Trade Unions (ACFTU) a government

controlled trade union is the only national body which governs trade unions activity

but workers had been struggling to create independent trade unions as an alternative to

the ACFTU since the late 1980s For example in May 1989 groups of workers in

various cities formed Workers Autonomous Federations (WAFs) but they were short-

lived and banned by the authorities and later in a crackdown on 4th June 1989

organizers were arrested and prosecuted on counter-revolutionary charges Since

1989 workers made other attempts to form independent trade union but they were

again jailed In 1994 workers who attempted to set up the League for the Protection of

the Rights of Working People (LPRWP) were arrested in Beijing

Bernard (1998) reported about USA that Supreme Court decisions rolled back

union and worker rights as well as amendments to labor law have restricted union

organizers while freeing management to penalize workers who attempted to exercise

their rights

UNDP (2000) in its report quoted that ICFTU in a Press Release dated 6998

reported that in 1997 nearly 300 trade unionists were killed for attempting to organize

labor unions 1681 were tortured or subject to physical mistreatment 2329 were

detained by police or military units and nearly 3500 were intimidated Press release

also alleged that even in United States an estimated 10 percent of workers

15

campaigning for unions are illegally fired 21427 workers lost their jobs in year 1998

for union activities

UNDP (2000) report further revealed that in developed countries despite the

force is not employed as frequently as in the third world many western nations still

have strong pro-corporate factions that have tried to render labor unions powerless

through legislative channels As Kremer and Olken (2001) expressed that even in

USA union formation is not so smooth and under Federal law covering most

industries if 30 of workers sign a petition calling for an election a certification

election supervised by the NLRB is held A union is recognized if more than half the

workers vote for it

Similarly Amnesty International USA (2005) reported that in Philippines

despite the government has ratified 22 of the International Labor Organizations (ILO)

conventions on labor standards including convention No 87 and No 98 the ILO has

received several complaints of non-compliance with these conventions Complaints

including instances of alleged extra-judicial execution of trade union leaders have also

been received

Even after union formation governments hamper the smooth functioning of

unions by different means DeSilva (1997) reported that South East Asian countries

took measures to restrict trade union actions and control unions as well as to avoid

union multiplicity However in some countries government has favored unionization

Government in Thailand for development of sound workplace labor relations

encouraged employers and employees and their organizations by initiating a program

Similarly in Japan workplace relations have been facilitated by the enterprise-union

system because many issues relating to competitiveness needed to be addressed at the

enterprise level and it has also been realized that competitiveness can be enhanced

through sound labor relations Nathanson and Associates (1999) wrote that in Israel to

avoid collective agreements the government as an employer is reducing the

proportion of permanent tenured employees and hiring more and more of its

employees through temporary manpower agencies in the public service and it is very

difficult to organize these temporary workers Waisgrais (2003) reported that in

16

Argentina attempt was made by the state to dismantle the trade union apparatus by

measures such as the suspension of all union activity the abolition of negotiations the

revocation of the right to strike and the removal of social work from the unionsrsquo

sphere of activity

2222 Opposition of unionization by employer

Employers in some countries lose no opportunity of exploiting the workers in

the form of paying low wages and other facilities but unions offer resistance and try

to protect rights of workers Employers put hurdles in the work of unions at the time

of union registration and defame the unions by charging that unions are corrupt It has

been elaborated in lines written below by quoting relative researches

Mills (1994) wrote that management has been hostile to unions during most of

American history American employers mostly opposed the growth of unions often

with the help of the law and the courts and in periods of conflicts federal and state

governments more frequently supported employers instead of unions

Brohawn (nd) expressed that unions are considered by most business

executives to be the kiss of death Small businesses in particular fear unions as an

outside force antagonistic to the interests of the company

Khan (1992) wrote about Pakistan that when worker gets job he becomes

reluctant to take part in unionrsquos affairs for fear of being victimized by management so

a common worker does not care to join a trade union So he concludes that in Pakistan

labor is still unorganized and has not been able to develop a sense of unity

Ghayur (1996-a) also analyzed that in Pakistan every effort was made in

private sector to resist union formation in private sector so if employer does not favor

the formation of union the matter can be prolonged for years Even foreign

companies resist as in Pakistan union of Korean Company (Daewoo) constructing

Motorway could not be registered despite of their best efforts Shafiq-ur-Rehman

(1973) pointed out unsatisfactory relationship between participants of industrial

relations in Pakistan and other developing countries and asserted that attitude of

17

employer is still very authoritative and paternalistic requiring a higher degree of

obedience and loyalty from their working force Their practical strategies have been to

insist on and claim all economic and non economic rights and for get about their

duties

Human Rights Watch (1998) also referred that South Korean companies

operating in Asia have been accused from all quarters of violating workers rights in

Vietnam China and Indonesia The Daewoo Construction Company did not allow the

free functioning of trade unions The case of the Daewoo Motorway Project in

Pakistan which began in 1991 where ten thousand employees were working on the

motorway between Lahore and Islamabad had been reported of use of violent physical

abuse against workers A complaint for this was lodged with the ILO

Employers are hampering the unionsrsquo activities in many ways as Hyman

(1999) expressed that Management always had hostile attitude towards unions In

some countries there has been a growing unwillingness by employers to accept trade

unions as collective representatives of employees while in other countries if collective

bargaining has survived its scope has been reduced and managements have

established new forms of direct communication with employees as individuals In a

report about Lithuania Dovydeniene 2002) wrote that employers strictly forbade their

employees to join unions and threatened to dismiss anyone who showed initiative or

took part in any union activity Workers threatened by unemployment had little

choice in the face of such exploitation

Bray et al (2005) asserted that according to AWIRS (Australian Workplace

Industrial Relations Survey) 1995 overall 88 of managers indicated a preference not

to deal with trade unions and only 7 of unionized workplaces believed that unions

effectively represented the interest of their members

223 Why Workers Join Unions

Bray et al (2005) wrote that people join unions because of dissatisfaction with

economic aspects of job a desire to influence those aspects of the work environment

18

through union-oriented means and a belief that the benefits of unionism outweigh the

expected costs

Holley jr et al (2001) expressed that employees join unions when they are

dissatisfied with physical characteristics of workplace low wages lack of benefits and

believe that unions will help them to achieve them job related conditions Like all

formal organizations unions also satisfy the membersrsquo need by providing means

enhancing a sense of identity and maintaining self-esteem They satisfy the workersrsquo

need of affiliation belonging and status that is at higher level than improved wages and

working conditions

Aidt and Tzannatos (2001) asserted that the desirability of unions depends on

many factors including (a) what unions do (b) how collective bargaining is

organized and (c) the effectiveness of dispute resolution mechanisms

According to Shafiq-ur-Rehman (2003) reasons behind workersrsquo joining

unions are lsquohigher wages and better working conditionsrsquo lsquojob securityrsquo lsquosocial needsrsquo

lsquoPeer groups pressurersquo and self fulfillment

Freeman (2007) analyzed that 70 of workers in 2005 believed that employers

fell short in providing regular cost-of-living raises to employees So workers tendency

towards unions has increased during last decade Freeman on the basis of his

researches with his companions based on WRPSs (Worker Representation and

Participation Surveys) 1990 and 2006 concluded that workers today want as much or

more of a voice in their workplace than they did in the 1990s and want a workplace-

committee form of representation The proportion of workers who want unions has

risen substantially over the last 10 years and workers want unions more than ever

before Because there are substantial gaps between workersrsquo desire to influence the

decisions and their actual influence in several important features of workplaces Bread

and butter gaps relating to issues of benefits and pay are greatest followed by the gaps

of training issues The gap between issues of what workers want in deciding how to

organize their work is smallest

19

The issue at the heart of this paper is to discuss the role of unions in making

efforts for solving the problems of workers in relationship with employers and in

relationship with state or government To avoid this paper from becoming too lengthy

actual research has been restricted to determine the efforts of unions only and not the

quantitative measure of their outcome

23 UNIONS ROLE FOR WORKERS BENEFITS

There have been difficulties in union formation and after formations unions

have also faced a lot of problems while running their business Now it is to see what

the role has been played by unions for benefit of workers and to what extent unions

succeeded therein In this regard researches have been conducted in different countries

or regions in the past which show struggle of respective unions for benefits of workers

such as rise in wages decrease in wage inequalities improvement in working

conditions and living standard betterment in quality of life reduction of working time

job security more paid leaves better pension facility employer sustained insurance

facility health care and health insurance and better health and occupational safety

conditions workers training and education facilities workers family welfare and

cooperative facilities for workers giving the workers awareness of their rights

reducing the fear of employer promulgation of workers favoring laws getting the

enforcement of these laws etc and during this what attitudes unions adopted

aggressive or cooperative constructive or conflicting selfish or sacrificial peaceful or

militant Researches are here to support and endorse these points

According to Guisinger and Irfan (1975) government intervention trade unions

and employer himself are responsible for wage increase

Sennholz (1983) asserted that now it is acknowledged that all labor

improvements are an achievement of the combined efforts of labor legislation and

union activity The credits for this goes to humanitarian legislators and courageous

union leaders for phenomenal rise in wage rates reduction of daily hours of work the

disappearance of child labor the limitation of woman labor and many other results

20

Khan (1992) narrated that trade unions protect material standards of living for

their members and also achieve security of service status in society and self respect

for themselves

According to studies of Nathanson et al (1999) in Israel Inoue (1999) in Japan

and Fahlbeck (1999) in Sweden in socioeconomic field unions rose to the challenge

of meeting the changing requirements of an industrial society for example

established themselves as credible partners and provided a variety of services to

members such as mutual aid credit insurance housing and consumer services mostly

through cooperatives linked to union membership

Jose (2000) concluded that unions played a conduit role for turning economic

growth and prosperity to workers in the form of improved standards of living and the

benefits of collective bargaining in terms of wage and non-wage benefits particularly

as reduction of working time Unions also helped to maintain a wage structure which

minimized income disparities between workers He further expressed that trade unions

are to lead an initiative for a social minimum wage consisting of the right to income

security (security of job) and other entitlements such as education health shelter and a

safe environment (workplace) In Scandinavia the pre-eminent position enjoyed by

unions in terms of membership and influence over public policies was anchored in the

services that unions provided to their members

According to Hirsch and Schumacher (2000) on balance unions are detrimental

to company performance and economic efficiency but in addition to unionrsquos negative

effects unionrsquos representation and collective bargaining provide workers with varying

degree of workplace democracy collective voice monitoring of working condition

protection from discrimination and enforcement of contractual provisions

Lovell et al (2002) using data of Current Population Survey US Census

Bureau found that workers in the retail food industry who are union members have

significantly higher wages higher rates of health insurance coverage larger

employment-based contributions to health insurance premiums and higher rates of

pension coverage than non-union workers Full-time and part-time workers women

and single mothers in the retail food industry all benefit from union membership

21

Shafiq-ur-Rehman (2003) wrote about Pakistan that now role of labor unions is

broad based and in additions to their collective bargaining role unions are involved in

social educational and recreational activities He also expressed that unionization can

the morale and motivation of the work force by improving the nature of jobs or by

changing workersrsquo perception of their jobs

Robles et al (2004) are of the view that unions are also promoters of social

capital in the economy by representing workersrsquo petitions exerting a pressure aimed

to improve conditions at the workplace and acting as employeesrsquo voice easing

communication between workers and employer which leads to help degree of job

turnover consequently reducing training cost of new employees Robles et al asserted

about unionsrsquo role for wages that empirical evidence has shown that unions exert an

upward pressure on wages

231 Wage Rise

The difference of wages between unionized and non-unionized workers is

lsquounion wage premiumrsquo and a major reason of workersrsquo joining of unions Pencavel

(1995) asserted that a primary concern of labor unions is to raise the wages of the

workers they represent because they act as wage-makers rather than wage takers this

role identifies unions as monopolies and according to Bryson (2001) union recognition

by employer for pay bargaining is basis for union influence in the workplace

According to Aslam (1982) a Pakistani researcher wages are of great

significance in an economy because they represent income to the workers cost to the

business men and are a major source of their purchasing power and have an important

bearing on the level of economic activity

Freeman and Medoff (1984) concluded that wage effect of union increased in

the 1970s when unionized workers won wage gains exceeding those of their nonunion

peers It is greater for less educated than more educated workers for younger than for

prime-age workers and for junior than for senior workers and it is greater in heavily

organized industries and in regulated industries than in others As a result of the

existence of trade unions in some unionized firms workers in nonunion firms trying to

22

avoid unions through positive labor relations obtain higher wages and better

working conditions because of the threat of unionism

As per findings of Cassoni et al (2002) the unions increase both wages and

employment and promote investment because the firms substitute labor by capital

Below mentioned studies reveal quantitative unionsrsquo efforts in wage rise or

mitigating wage salary differences

Aidt and Tzannatos (2001) referred that workers either union members or

covered by collective agreements on average get a wage markup over their non

unionized (uncovered) counterparts which is almost 15 percent in the United States

and in most other industrial countries is 5 to 10 percent It appears high in Ghana

Malaysia Mexico and South Africa but relatively low in the Republic of Korea

Holley jr et al (2001) quoted that unionsrsquo wages ranged between 10 and 15

percent higher than non union wages They further analyzed that by 1970s the union

wage differential climbed to 20 to 30 percent This impact was more on wages of blue

collar younger and less educated employees

Belman and Monaco (2001) using the data source of Current Population

Survey 1973-1995 of US Census Bureau found that union membership remains an

important determinant of wages with members earning 18 to 21 more than their

non-union counterparts The earnings of truck drivers fell by 21 between 1973 and

1995 and the primary sources of wage decline and increased wage inequality have

been deregulation a declining manufacturing wage and declining union membership

Blanchflower and Bryson (2002) concluded that both in UK and USA despite

union membership is declining unions are able to raise wages substantially over the

equivalent non union wages and unions in the countries Australia Austria Brazil

Canada Cyprus Denmark Japan New Zealand Norway Portugal and Spain are also

able to raise wages by significant amount and estimates from their 17 examined

countries were averaging 17 percent However in countries like France Germany

23

Italy Netherlands and Sweden where union wage settlement spill over in to non-

union sector there is no significant union wage differential

Klaff and Ehrenberg (2003) using the data source of survey conducted in USA

by the Association of Higher Education Facilities Officers 1997-1998 investigated that

union coverage affected staff salaries at 163 US colleges and universities and

estimated a union salary premium of 9- 11

Cleveland et al (2003) using Survey data for Canadian childcare workers in

1991 found that the union impact on wages was 15

Mishel and Walters (2003) found that unions raise the wages of unionized

workers by roughly 20 and raise total compensation by about 28 They also found

that in USA according to estimates from household surveys in 1990s there was a union

wage premium ranging from 15 to 25 The unionizations impact on wages goes

beyond the workers covered by collective bargaining to affect nonunion wages and

labor practices eg in USA non-unionized high school graduates earned 20 to 55

higher wages in industries with 25 unionization than they did in completely non-

unionized industries

Hirsch (2003) also reported that in one study in 2001 the ECEC data showed a

large gap in benefits between union and non-union workers and hourly compensation

for nonunion workers was $1998 whereas compensation for union workers was $

278 Unions not only raise wages of unionized workers but also affect nonunion

wages albeit to a far lesser extent than union wages

Kang (2003) in a study in Singapore estimated approximate union wage effect

in the range of 02 to 32 percent

Waisgrais (2003) also narrated in a report about Argentina with reference to

several studies regarding the role of the unions and in particular to collective

bargaining that workers covered by collective agreements receive higher wages than

those who are not

24

Knox 2004 wrote that unionized workers are still doing well despite the

flagging numbers as in USA with 8 of workers in the private sector unions still

exercise real power over contracts and there are substantial wage mark-ups In Britain

that isnt the case theres no wage mark-up anymore

However according to several studies unions could achieve either marginal or

no improvement in wages Inoue (1999) revealed that in Japan the automatic annual

pay raise system is widely adopted and wages rise according to years of service

which serve as an indicator for skills In terms of real wages unions have gained

marginal improvements during the 1990s

Similarly Anyemedu (2002) found that in Ghana government considers wage

restraint as a means of attracting foreign investment Hence the government and

employers have succeeded in installing the capacity to pay of employers as virtually

the only factor to be taken into account in wage determination

232 Reduction in Wage Inequality

Labor unions also exert efforts for increasing equality and reducing

discrimination in wages of workers

Freeman and Medoff (1984) opined that unions raise blue-collar earnings

relatively more than white-collar earnings thus reducing inequality between those groups

Unions by adopting pay policies that limit managerial discretion in wage-setting reduce

inequality among workers in the same establishments and among different establishments

A study of The World Bank (1995) revealed that unions eliminated discrimination

of income between workers so during a study in the Republic of Korea in 1988-90 it was

found that unions placed great value on wage equalization and as a result the degree of

wage dispersion in the unionized sector was 52 lower than in the non-unionized sector

In Mexico union action also helped to reduce discrimination and another study using wage

data for 1989 concluded that in the nonunion sector men enjoyed a 175 wage

advantage over women with identical skills and experience but there was no significant

wage differential between men and women in the unionized sector Similarly the study

25

found a significant wage disadvantage for indigenous people in the non-unionized sector

whereas no discrimination in firms covered by trade unions

Stiglitz (2000) Senior Vice president World Bank mentioned admiringly the

role played by organized labor in developed countries in stabilizing industrial

relations preserving firm-specific knowledge and organizational capital and

mitigating the income inequalities

Aidt and Tzannatos (2001) also concluded that unions reduced the wage

differences particularly between unionized workers and skilled and unskilled workers

Card et al (2003) reported similar result that within workers groups of same

skill for union workers wage inequality is always lower than nonunion workers

233 Fringe Benefits

Sennholz (1983) stated that most people expect more from their work than

wages These things are fringe benefits and provide additional remuneration to

employees in the form of vacation and holiday pay sick pay the cost of pensions and

employer contributions to various benefit systems

Cleveland et al (2003) found that the union impact on fringe benefits was in

line with union effects found in other better-compensated work and they found

substantial returns to education occupational level and firm-specific experience

George (2004) concluded that the demand of workers for social justice is

justified and workers are entitled to an equitable distribution of the nationrsquos wealth on

the reasons that labor is an equal partner with capital and management and laborers

are the primary contributors to economic growth of a nation So the workers should be

paid a fair living wage for their labor and certain fringe benefits such as free

healthcare paid holidays and job security George reported that several claims such as

bonuses overtime payments working hours shift duty allowances gratuities

uniforms transport allowances and housing vehicle loans are negotiated between the

union and the employer

26

Carty (2003) referred that in Mexico Consequence of replacement of CROC a

government backed union by an independent union workers receive a wage increase of

10 and a 5 increase in cash benefits and attendance bonuses Workers now make

up to 40 more pay than they were making under the old contract

234 Job Security and Employment

As per analysis of Inoue (1999) for Japanese trade unions safeguarding their

members from any threat of unemployment has a special importance so Japanese trade

unions do not accept lay-offs During the 1950s and1960s there were many protracted

labor disputes caused by threatened dismissal Trade unions lost most of these big

disputes but the losses incurred by the companies were also enormous Therefore in

Japan there is a tacit agreement between labor and management to avoid massive lay-

offs as far as possible This agreement is manifest in employment adjustment practices

during the recession in the 1990

Wong (2000) expressed that employment security and fair distribution of the

benefits of economic growth have been the primary concerns of the labor movement in

Singapore

Farber (2001) quoted the Freemanrsquos analysis that ldquoworkers in union jobs are

less likely to quit reflecting the higher level of wages and benefits this is due to

unions provision of mechanism for lsquovoicersquo as an alternative to lsquoexitrsquo in addressing

workplace concernrdquo

Aidt and Tzannatos (2001) also concluded that in unionized firms voluntary

job turn-over is lower and the job tenure is longer The evidence on this finding from

Australia Japan Malaysia the United Kingdom and the United States seems quite

robust On the other hand layoffs particularly temporary layoffs are more frequent in

unionized firms than in non-unionized ones

According to Lee et al (2001) Labor unions in Korea strongly opposed the

introduction of redundancy lay-off by massive nation wide strikes

27

Unions also give courage and awareness therefore according to Mishel and

Walters (2003) Union members have significantly less anxiety about losing their job

or suffering other employer-imposed penalties for taking leave

ILO (1999) reported that the trade unions cooperated in Singapore with the

state and the employers in efforts to maintain full employment to set wages at levels

which maximize employment therefore unions have accepted temporary wage cuts in

order to save employment

Vedder and Gallaway (2002) asserted that unions are associated with lower

rate of growth in income and jobs Occupations and industries with high rates of union

density have had less vibrant job growth in recent decades Widespread unionization

of an industry is often associated with initial sharp declines in employment as the

steel industry demonstrates

Addison (nd) concluded from survey in UK and reported a retarding role of

unions in employment growth as unionized establishment in 1980s tended to grow 3

percent less per year than their non unionized counterparts Union plants were more

likely to be shedding labor and unions induced reduction in employment growth in

26 for 1989-90

To overcome loss of unemployment and slow growth in employment caused

by unionization unions played role in launching unemployment insurance schemes

and unemployment benefits Katz et al (1993) reported that unions in Sweden and

Denmark have played a constructive role in the administration of unemployment

benefits

Bernhardt et al (2002) studied the Wisconsin Regional Training Partnership

(WRTP) which is an association of 125 employers and unions dedicated to family-

supporting jobs in a competitive business environment and found that the WRTP

members have stabilized manufacturing employment and contributed about 6000

additional industrial jobs to it over the past five years

28

According to Mishel and Walters (2003) unionrsquos representation increases the

likelihood of an unemployed worker in a blue-collar occupation receiving

unemployment insurance (UI) benefits by approximately 23 They also referred that

role of unions is pivotal considering unemployment insurance acts as a stabilizer for

the economy during times of recession

Unions have also operated Unemployment Insurance themselves as Zutavern

(2005) reported the existence of unions operated voluntary unemployment insurance

schemes in Denmark Finland and Sweden

Budd and McCall (2004) using and analyzing data source of January 1996

Current Population Surveys Displaced Worker Supplement of US Census Bureau

found that eligible blue-collar workers laid off from union jobs are approximately 23

more likely than comparable nonunion workers to receive unemployment insurance

benefits

235 Time Reduction (Duty Hours)

Unions have struggled to minimize the duty time and working hours which

were once more than ten hours in a day or more than 70 hours a week (even more than

3000 hours a year) in 19th century But in 20th century are 8 hours a day or 40 hours a

week and in some countries even less than this However the level of success is

different in different countries

Colman (2000) reported that in USA in 1835 General Trade Unions in a

number of cities led a successful general strike to shorten the working day from

fourteen hours or more to ten hours and in Philadelphia a group of Irish laborers

struck for time reduction and marched through the city chanting lsquosix to sixrsquo In same

year in Dover New Hampshire girls and boys struck the cityrsquos mills and won a

reduction of hours from 135 to 12 hours per day Their effort succeeded after a

century and time was reduced to eight hours As Sennholz (1983) wrote that in USA in

1938 the federal government passed Fair Labor Standards Act which imposed

minimum wage rates provided for a 40-hour week and also allowed for overtime

work if paid at time and one half and it is public opinion that all labor improvements

29

are an achievement of the combined efforts of labor legislation and union activity ILO

(1999) reported that unions in Germany have negotiated for a 35 hours week in some

sectors and regions early retirement schemes part-time work educational leave and

family leave

Japanese Labor Union Rengo presented a reduction in working hours and

adoption of policies favoring labor Rengo sought the introduction of a five-day week

In 1993 Rengo adopted the policy delineated in the New Medium-Term Working

Hour Reduction Plan with the target of 1800 working hours by fiscal year 2000

(Inoue 1999)

This time reduction was prevailing everywhere at large extent as Aidt amp

Tzannatos 2001) wrote that hours worked is lower among unionized than non-

unionized workers This is true for both total and normal hours

Buchmueller et al (2001) also found that union workers work fewer hours per

week than non unionized workers and this difference was 3 hours from 1972 to 1984

and after 1992 this difference is one hour per week

Lee et al (2001) pointed out that in 1997 in Korea flexible working hour

system was allowed with maximum of 48 hours per week cycle with the condition that

one week average will not exceed 44 hours or 8 hour a day

236 Payment of Over Time

Aidt and Tzannatos 2001) pointed out that unionized workers are more likely

to get paid for the overtime work that they do

According to Mishel and Walters (2003) employer compliance with the

overtime pay regulation rose sharply with the presence of a union because unions

often report violations to enforcement agencies

237 Paid Leaves

Budd and Mumford (2001) asserted that in UK trade union is one possible

institution for improving work-life problem and a primary mechanism for trade unions

30

in this regard is to bargain for additional employer-provided family friendly policies

including parental leave and paid family leave Unions appear to positively affect the

provisions of parental leave and job sharing options

Union workers have one week more vacation time than non-union workers

Union workers generally spend on leave slightly more time for illness their own or

illness of others which is approximately 14 week per year as compared to one week of

non-union members (Buchmueller et al 2001)

Aidt and Tzannatos (2001) stated that fringe benefits are more commonly

found among unionized workers than among non-unionized ones (in Australia Japan

Malaysia the United Kingdom and the United States) Benefits can include severance

pay paid holidays paid sick leave pension plans and so on

Mishel and Walters (2003) expressed that union workers also get more paid

time off which includes having 266 more vacation than nonunion workers and

according to another estimate the union workers enjoy 143 more paid time off

including vacations and holidays

238 Working Condition

Working conditions are of very importance for workers because they affect

their performance and productivity Khan (1992) wrote that an industrial worker

spends at least 8 hours a day three hundred days a year and about forty to fifty years

of his life period at workplace If the lives of the industrial people are generally

healthy happy and agreeable it is necessary that working conditions should be

healthy congenial and attractive and work itself should be made as interesting as

possible and relations between workplace workers and management should be

friendly and cooperative Robles et al (2004) asserted that enhancement of working

conditions in turn may increase inputsrsquo productivity Unions exert efforts for pleasant

working conditions

31

Thomas (1999) stated that trade union movement in South Korea fought for

basic labor rights and improvement of working conditions and it also has widely

known assertive role in the processes of re-structuring

Wong (2000) narrated that in Singapore the fundamental role of trade unions

remained to ensure fair wages and working conditions and to improve the standard of

living and quality of life of workers

239 Health Care and Social Security

Unionsrsquo role in securing health safety and welfare benefits for employees has

been found in following studies

Weil (1992) in his study made a comparison of OSHA enforcement in union

and nonunion construction sites and found that union sites face higher probabilities of

inspection and receive greater scrutiny during inspections than do comparable

nonunion sites

According to Buchmueller et al (1999) the role of US trade unions in

obtaining health and welfare benefits for their members dates to the 18th century and

in Britain a greater inducement for workers to join the union was support in sickness

or unemployment They also reported that in USA due to collective voice and other

factors union effects on the provision of health insurance are likely to be large

therefore unionized workers are more likely than non-unionized workers to receive

health benefits and the difference is depicted by higher probabilities of insurance

offers and higher take-up rates for union workers They further wrote that plans

offered by union establishments are about 20 percentage points more likely to be fully

financed by employers (494 percent vs 296 percent) than employers of non union

establishments They also asserted that in health plans in unionrsquos establishments

proportion of health insurance premiums paid by employers was 14 percent higher in

union settings Buchmueller et al found that in USA union establishments are 153

percentage points more likely to pay the full premium of insurance for family

coverage as compare to non-union ones (276 percent vs123 percent)

32

Stiglitz (2000) admitted that unions have played role in Health and safety

standards and had played also role in improvement of working conditions for workers

According to another study by Jose (2000) Histadrut a trade unions of Israel

grew in strength until the early 1990s with an impressive membership based on the

provision of services notably health care

According to Farber (2001) union members receive a larger fraction of their

compensation in the form of health insurance and pensions

Budd and Mumford (2001) also reported that individuals represented by a trade

union are more likely to receive traditional fringe benefits such as health insurance and

retirement plans

Adji (2002) expressed that in the Niger the union representing employees

working for the national social security scheme (CNSS) is preparing a social fund

designed to provide a supplementary pension and to pay the 20 per cent of medical

expenses which are not covered by the national scheme In Niger the USTN is

developing a health insurance project

According to Hirsch (2003) unionsrsquo workers receive more compensation for

risks than non-union workers

Mishel and Walters (2003) narrated that ldquoUnions had provided labor

protections for their members in three important ways (1) By identifying where laws

and regulations are needed and getting these laws enacted (2) Providing information

to members about workers rights and available programs and (3) By encouraging

their members to exercise workplace rights and participate in programs by reducing

fear of employer retributionrdquo Mishel and Walters concluded that unionized workers

are given employer-provided health and pension benefits far more frequently as

compare to nonunion workers and also provided with better paid leave and better

health and pension plans Unions also reduce wage inequality between workers and

workers groups because they raise wages more for low and middle-wage workers than

for higher-wage workers more for blue-collar than for white-collar workers and more

33

for workers who do not have a college degree Union members are 60 more likely

to file an indemnity claim than nonunion workers They also mentioned findings

quantitatively that 835 of unionized workers have employer-provided health

insurance and only 62 of non-unionized workers have such a benefit Unionized

workers are 244 more likely to receive health insurance coverage in their

retirement Employers with unionized workforces also provide better health insurance

paying an 111 larger share of single worker coverage and a 156 greater share of

family coverage and deductibles for unionized workers are 18 less They concluded

that in USA implementation of OSHA seems highly dependent upon the presence of a

union at the workplace

ILO (2005) reported that every year some 22 million people in the world

succumb to work related accidents or diseases so it is the daily grass root work of

labor unions to ensure the compliance of health and safety regulations at work

2310 Post Retirement Benefits (Pensions)

Unions also have an eye on the life of workers after the end of service For this

they exert efforts either in the form of arranging employer contribution or launch their

own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is

shown in the several researches where unionized workers receive better pension

options and opportunities

Freeman and Medoff (1984) opined that unions alter the entire package of

compensation substantially increasing the proportion of compensation allotted to

fringe benefits particularly to deferred benefits such as pensions and accident and

health insurance which are favored by older workers These changes are on balance

to be viewed as a social plus

Bernard (1998) was of the view that trade unions in USA had been the most

successful labor movement in the world by enjoying the highest wage premium and

winning benefits like pensions health care and paid vacations for their members that

in other industrial countries working people could win only through political and

industrial action

34

Holley jr et al (2001) expressed that in 1999 unionized US employers per

hour paid benefit costs averaging $ 853 compared to non-union employer costs $466

These costs include pension payments payments for time not worked (such as

vacations sick leave paid rest and lunch breaks) insurance costs and legally required

payments (social security unemployment compensation)

Buchmueller et al (2001) reported that in 1983 union workers were nearly

twice as likely to participate as compare to non-union workers in an employer-

sponsored pension plan (766 percent vs 388 percent) and between the years 1988 to

1993 the unionrsquos effect on employer provision of retiree benefits increased

substantially and the unadjusted union effect rose from 101 percentage points to 167

percentage points

Similarly Mishel and Walters (2003) wrote that 719 of unionized workers

have pensions provided by their employers while only 438 of nonunion workers

enjoy this facility Thus unionized workers are 539 more likely to have pension

coverage

Ebbinghaus (2002) found that in Europe trade unions have gained or

enhanced their collective bargaining role in the area of private pensions in addition to

mandatory state pensions

2311 Training Opportunities

According to some researches unions are also taking interest in workers

training education and awareness either pursuing government or employers to arrange

training or arranging training programs themselves to build their skill and enhance the

earning capacity of workers

Therefore Aidt and Tzannatos (2001) wrote that unionized workers tend to

receive more training than their non-unionized counterparts especially company-

related training

Wong (2000) stated that in Singapore unions urged employers to invest in

training of workers and also negotiated training clauses in collective agreements and

35

sought to ensure higher subsidies from SDF for training of lower- skilled lower-

income workers She further wrote that NTUC and affiliated unions urged workers to

enhance their skills as a means to ensure employment security by keeping pace with

changing job requirements and to increase their earning capability in the longer term

In December 1996 to help workers to remain employable throughout life by providing

nationally certified skill training NTUC also approached employers to sponsor their

employees for skills upgrading programs On 30th June 1999 a total of 288 companies

had committed 21800 workers for SRP programs in five general launches and nine

sectoral launches since December 1996

Katz et al (1993) wrote that in many countries unions are involved effectively

in vocational education programs so Adji (2002) reported that in Niger The USTN is

running a project to provide low-cost training to workers and one of the unions is

organizing and training workers in the sectors which it represents In January 1999 an

international cooperation project was launched (ILODANIDA) with the aim of

supporting the efforts of USTN and CNT to provide workersrsquo education in the

informal sector The USTN is also running a training school and an agricultural

project

Booth et al (2003) using data of British Household Panel Survey 1991-96

found that union-covered workers were more likely to receive training and also

received more days of training relative to non-covered workers Among workers who

received training those with union coverage enjoyed greater returns to training and

higher wage growth than did those without

Shafiq-ur-Rehman (2003) mentioned about Pakistan that capitalist

entrepreneurs including the past governments have been least interested in

development and training but this situation has improved now and many employers

with encouragement from Skill Development Fund are actively training their workers

and provide all facilities to trade unions

TUC (2006) in a briefing paper reported that union presence has a significant

impact on the incidence of training Analysis of the 2003 Labor Force which showed

that 39 of union members had been engaged in some training in the previous three

36

months compared to only 26 of non-unionized employees TUC also reported that

employees get more training when the issue is negotiated with employers by unions

rather than employers simply consulting with unions about the organizations training

strategy TUC referred research by Francis Green 1996 which demonstrated that

unionized workplaces were 17 more likely to have a training centre and 11 more

likely to have a training plan TUC referred other studies such as of Heyes et al

(1998) showing that training is more likely to deliver benefits to members when

unions not only secure recognition from the employers but also play an active role in

decisions about what is provided and Metcalfs research who found that the pay-off

from engaging in training is also much greater for union members than it is for non-

unionized employees For male union members the post-training wage was 21

higher than the pre-training wage but the corresponding increase for non-unionized

male employees was only 4

Addison (nd) wrote that there are a number of theoretical arguments

suggesting that unions may stimulate training The British work on determinants of

training has generally reported positive effects He reported positive relations of

unionsrsquo recognition with the incidence of training and union recognition also leads to

increased hours or days of training

A study of Boheim and Booth (2004) showed positive relations of union

recognition with training in private sector

2312 Workersrsquo Education

Fahlbeck (1999) reported that in Sweden the extensive training and education

programs conducted by virtually all unions LO for example has a wide range of

educational programs and runs several schools Anyemedu (2002) also reported that in

Ghana the TUC has made the education of its members one of its priority concerns

The participants of conference on sustainable development (CSD 2001) evidenced it

by acknowledging that trade unions have developed capacity for workplace centered

education because unions are the foremost providers of adult education in many

countries

37

2313 Recreational and Social Services

Unions have rendered service in provision of social benefits launching

cooperative movement and arranging recreational facilities to workers Jose (2000)

wrote that unions over the years embraced a broader agenda including health care

leisure and recreation retirement and non-wage benefits from employment

Fahlbeck (1999) reported that unions in Sweden provide services regarding the

private lives of their members for examples unionrsquos actions include contracting

insurance policies for their members such as home and accident insurance In

addition unions can arrange private bank loans or provide collateral for a loan and

Swedish union LO has recently entered in the field of utilities About recreational

services Fahlbeck wrote that unions routinely assist members in realizing meaningful

activities during time off and also help in arranging vacations One of the leading

travel and tour operators in Sweden which also runs hotels is a creature of the LO

movement

ILO (1999) observed that in the newly industrialized countries unions have

played an important role in shaping social security systems that is different from

industrialized countries For example in Singapore unions provided welfare benefits

to members Workers and employers together contributed a significant share of their

earnings to the Central Provident Fund Unions also participated in mobilizing

savings The other example is of Hong Kong where unions have also pushed for the

establishment of a pension system although this has not yet been functional In the

newly industrialized countries unions have played an important role in shaping social

security systems such as in Singapore where unions provide welfare benefits to

members and also participate in a sophisticated mechanism for mobilizing savings

Workers and employers together contribute a significant share of their earnings to the

Central Provident Fund which has become an important pillar of the Singapore

economy In Hong Kong (China) unions have also pushed for the establishment of a

pension system although this has not yet been put in place

38

Thomas (1999) reported that in Singapore trade union movement adopted new

role being associated with the implementation of welfare schemes so he terms unionrsquos

this role in Singapore as accommodating model

Virmani and Rao (1999) reported that the unions in Singapore have started on

non bargainable activities to enrich workers lives as they are promoters of

cooperatives in transportation health care consumer cooperatives insurance etc by

running 8000 taxies and 47 cooperative supermarkets

Wong (2000) expressed that in Singapore in 1969 for a socio-economic

movement contributing to workers well being in the wider community the role of

trade unions was broadened beyond collective bargaining on terms and conditions at

the workplace To start a cooperative movement decision was made to pool resources

with the objective to provide services to which private businesses were not offering to

lower-income workers and to give workers a stake in the ownership and management

of business ventures It was also decided to return any surplus to worker and union

shareholders and to the labor movement Wong further narrated about provision of

recreational facilities that in Singapore in 1986 the NTUC pooled resources to set up a

union operated Club for affordable facilities for members and their families today

there are eight outlets in the Singapore Unions with corporate support developed at

state land large-scale projects like NTUC Pasir Ris Resort NTUC Sentosa Beach

Resort and NTUC Aranda Club for affordable holiday facilities within Singapore and

also sat up the Orchid Country Club for workers golfing accessible to all through their

union or personal membership For cooperatives Wong reported that in Singapore

NTUC established its first cooperatives in 1970 to provide insurance to ignored

workers now there are ten cooperatives ie Denticare Fair Price (supermarket)

Childcare Healthcare Food fare (cooked food) Choice Homes Eldercare Media

Thrift and Loan providing services to meet the diverse needs of workers and their

families

Stiglitz (2000) also acknowledged the highly constructive social and political

roles of labor movements in many countries in promoting adult education movement

39

the mutualism movement in the form of credit unions mutual banking mutual

insurance cooperatives friendly societies and other self-help associations

Ebbinghaus (2002) found that even in Europe now unions are involved in the

social policy area and participating in self-governing bodies of national social

insurance schemes

2314 Children Education

Song (1999) wrote in research report about unionsrsquo struggle in Korea that

working conditions have gradually improved with a shorter working day and for

better fringe benefits including childrens education and housing allowances

2315 Workers Awareness

Mishel and Walters (2003) reported that unions created awareness about laws

regarding health such as in USA about FMLAs existence and regulations Unions

have also given workers awareness about their rights so union members are about 10

more likely to have heard of the FMLA (in USA) and understand whether or not they

are eligible This is because of awareness given to them by unions

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY

The co-operative role of unions towards state employer and society by

exerting efforts to increase productivity and efficiency has been studied by several

researchers as quoted in following lines

241 Productivity Efficiency and Profitability

According to Hirsch (1997) productivity simply means output for given levels

of inputs A firm that is more productive than another can produce more output using

the same combination of inputs or equivalently produces the same output using fewer

inputs When increase in productivity is referred attributable to unions it means a real

shift in the marginal product schedule Hirsch concluded from many studies both

negative and positive effects of unions on productivity Even some studies show

negative as well as positive effects of unions on productivity at different times in the

40

same study Hirsch quoted about the effect of unions upon productivity that unions

increased total factor productivity by more than 20 percent

Shafiq-ur-Rehman (2003) is of the opinion that unions provide their members

both with protection against arbitrary management decisions and voice ant work place

and this will be not only increasing wages but productivity as well He further wrote

that collective voice face of unionism suggests important ways in which unionism can

raise productivity

There are surprisingly few manufacturing-wide or economy-wide productivity

studies and none reports consistent evidence of an overall positive effect of unions

upon productivity

Maki (1983) using aggregate Canadian data concluded that the shock effects

of unionization initially increase productivity levels but that unionism is associated

with slower productivity growth British studies of Nickell Wadhwani and Wall

(1992) and Gregg Machin and Metcalf (1993) for differences in productivity growth

between unionized and non-unionized firms evidenced that unions have either a

negative effect or no effect on productivity growth during the early years of their

analysis but positive effects during the 1980s Marshall (1987) is of opinion of

negative effects of unions on productivity and economic performance

A study of Morgan (1994) who used aggregate cross-sectional manufacturing

data across time found surprising results Morganrsquos estimates for the years around

1972 were of increasing productivity but declined steadily over time and were

negative during the 1980s

Fernie and Metcaf (1995) found that for one dimension measure the union

effect is negative but only marginally significant

Hirsch (1997) referred his own study based on a sample of 531 firms and

covering the period from 1968 to 1980 and provides the most comprehensive

treatment of unions effects on productivity growth where he found that union firms

are found to have substantially slower productivity growth than nonunion firms

41

Aidt and Tzannatos (2001) are of the view that the impact of unions on

productivity levels is empirically indeterminate Some studies suggest a positive

impact but others imply a negative impact or no impact at all For example unions

appear to have a negative impact on productivity levels in the United Kingdom but a

positive impact in Malaysia Regarding profitability Aidt and Tzannatos concluded

that net company profits tend to be lower in unionized firms than in similar non-

unionized firms (in Japan the United Kingdom and the United States) There seems

to be a relatively large negative impact on profitability in firms that have product

market power

Addison (nd) wrote about UK that early British evidence shows negative

effects of unionism on the productivity of firm and establishment but according to

later researches there is no short fall in unionized establishments during period of

1979-1984 and unionized firms increased their productivity most at the end of the

1980s There are several studies showing negative albeit least effects of unionism on

productivity as Gregg et al (1993) found that unions recognition affects negatively but

statistically insignificant effect during 1984-97 but positive and statistically significant

for 1988-89 (+3 to 4 ) Study of Conyon and Freeman (2001) revealed that union

effect is negative but statistically insignificant

According to Vedder and Gallaway (2002) Labor unions in contemporary

America have harmful aggregate effects on the economy They are associated with

lower rates of growth in income and jobs On balance people move away from union-

intensive areas to areas with relatively low rates of union density Occupations and

industries with high rates of union density have had less vibrant job growth in recent

decades Widespread unionization of an industry is often associated with initial sharp

declines in employment as the steel industry demonstrates The decline in union

density in the private sector in the past generation has been sharp and that decline has

added to the vitality of the economy at the beginning of the new century The

increasing weakness of unions in the market economy has contributed to economic

growth and a rising proportion of the working age population that actually works

42

From some researches evidences have been found that unions have worked for

enhancing the efficiency and productivity of workers Freeman and Medoff (1984) are

of the view that in many sectors unionized establishments are more productive than

nonunion establishments while in only a few they are less productive The higher

productivity is due to lower rate of turnover under unionism improved managerial

performance in response to the union challenge and generally cooperative labor-

management relations at the plant level

Eaton and Voos (1992) concluded that union firms are more likely than their

nonunion counterparts to be involved in workplace innovation such as those of

cooperative arrangements like teamwork and production gain sharing which yield

higher productivity Kelley and Harrison (1992) found that unionized firms were as

much as 31 percent more productive than non-union firms

In its report the World Bank (1995) concluded that trade unionrsquos activities

could be conducive to higher efficiency and productivity because they balanced the

power relationship between workers and managers and unions limit employerrsquos

arbitrary exploitative or retaliatory behavior by establishing grievance and arbitration

procedures Unions reduce turnover and promote stability in the workforce conditions

that causes an overall improvement in industrial relations which leads to enhance

workers productivity The view that the unions can enhance productivity and

efficiency also has been supported by recently analyzing Malaysian data

Pencavel (1995) wrote that presence of union and its representation of workersrsquo

demands views and ideas before management can benefit as well as harm the firm It

benefits when productivity and efficiency is increased and causes harms when wages are

raised beyond the firmsrsquo paying level For example in many jobs the worker may be

better informed about the potential for productivity improvements within his department

than his supervisor and he will be more willing to provide that information if he is

confident that any change in organization will benefit him He can communicate his

information to management through his agent that is union The presence of an agent of

the worker may make the worker less suspicious that the information he reveals will

benefit only management There is evidence that participation by workers in a firms

43

decision-making sometimes raises productivity and if the union involves the workers in

efficiency-enhancing activities then unionism is associated with a more productive

organization However according to Pencavel there were also arguments to suggest that

unionism harms productivity particularly when a union protects indolent or careless

workers from disciplinary action or when a union opposes changes especially labor-

saving technological changes and thereby retards an organizations development or a

union may successfully negotiate capital-labor ratios that oblige the firm to use more

workers per machine than relative input prices would call for

Fashoyin (1997) is of the view that in Japan the productivity improvement

movement has had a much greater impact and unions were an important party to the

productivity improvement crusade

According to Tolentino (1997) during the Asian Regional Seminar of ILO on

Trade Unions Industrial Relations and Productivity held in Tokyo in 1982 the

participants adopted the view that the goal of high and increasing productivity in

industry agriculture and services is one to which Asian trade unions no less than

management and government can and ought to subscribe This position was a clear

exemplification of the trade unions long commitment to national development and

indeed of their perception of the leading role which they could and should play in this

process Tolentino opined that the rapidly globalizing economy calls for dramatic

changes in the roles that the trade unions have to play to improve national

competitiveness for the sake of workersrsquo well-being As representatives of workers

they could play a significant and active role in creating the national economic and

business environment that will make their countries competitive in the globalize

marketplace of capital technology products and services The trade unions as

representative organizations of workers have very important roles in the promotion of

productivity At the macro level they could participate in the creation of the policy

and general business environment conducive to productivity improvement and at the

institutional level they could exercise their influence in making productivity related

institutions such as vocational training systems industrial relation bodies etc

effective At company level trade unions can participate in the companys productivity

improvement efforts by helping to create the enterprise policies and structures that will

44

guide and facilitate productivity improvement and helping their members directly to

participate in the productivity improvement programs of the enterprise In Poland in

the last three years more than 600 enterprises have undertaken productivity

improvement programs through the joint efforts of management and trade unions and

achieved growth 2 to 5 times the growth rate of the whole Polish economy

Productivity raised by 78 (in one year) compared to 8 in the total economy The

tremendous increase of profit made bonuses possible Some of the enterprise started to

increase employment The personal income of workers increased by an average of 20

compared to 2 in the whole economy due to the 40 growth in the value added

in these enterprises compared to 6 in the whole economy

According to Human Rights Watch (1998) productivity in Malaysia is actually

higher in enterprises where the workers are organized in industrial unions than in non-

unionized companies

Cassoni et al (2002) also reported that unions promote increases in

productivity and prevent profitability increases

A study of Bernhardt et al (2002) of Wisconsin Regional Training Partnership

an association of 125 employers and unions concluded that among member firms

productivity is way up exceeding productivity growth in nonmember firms

Shafiq-ur-Rehman (2003) wrote that in some Asian countries like Korea and

Japan trade unions adopted a cooperative and assisted management in improving

efficiency

Ash and Seago (2004) examined the relationship of unionized nursing staff and

the mortality rate for acute myocardial infarction (AMI) or heart attack in acute care

hospitals in California and found that hospitals with union nurses have 55 lower

heart-attack mortality than do non-union hospitals

Doucouliagos and Laroche (2003) expressed that the economics literature

found a positive association of unions on productivity The positive association of

unions with productivity is established for the United States in general and for US

45

manufacturing in particular Eisenbrey (2007) denied the common myth that unions

hurt productivity supposedly because they impose work rules that make their

employers less efficient He quoted yearly growth of workers productivity in the form

of bar chart showing productivity increase of 18 18 15 15 14 17 23 and 17

for Belgium France Germany Italy Netherlands Spain Sweden and USA

respectively for years 1979 to 2005 Productivity in USA did not increase even as

consequence of dropping of unionization to 12 during this period while productivity

increased in the seven largest European countries with union density greater than 60

Regarding profitability Freeman and Medoff (1984) are of the view that as

compared to non-union employers unionized employers tend to earn a lower rate of

return on capital because of increase in wages and the greater amount of capital used

per worker These increased costs are not compensated for by the higher productivity

of labor associated with unionism

About profit Hirsch (1997) analyzed that union wage gains lower firm

profitability unless offset by productivity enhancements in the workplace or higher

prices in the product market He concludes from several studies that although there is

diversity in results most studies obtain estimates suggesting that unionized firms have

profits that are 10 percent to 20 percent lower than the profits of nonunion firms

Saavedra and Torero (2002) referred evidence from some studies showing

negative effect of unions on profits and also a negative albeit less robust impact on

labor productivity in Peru

Studies of Addison and Hirsch (1989) and Machin and Stewart (1996) about

North America and Meneses-Filho (1997) for the United Kingdom reveal that unions

have a negative effect on profits and on shareholders wealth About profitability

Addison (nd) expressed that almost all early British studies showed negative effects

of various indicators of presence of union on the financial performance or profitability

46

242 Work Place Harmony and Cooperative Role

Unions are blamed for harsh and quarrelsome attitude non-cooperation and

always demanding for benefits Following studies shed light on it

Katz et al (1993) concluded that despite in some cases unions have defended

the lsquotraditional waysrsquo by fighting against the lsquochangesrsquo but in some other cases unions

cooperated for saving jobs and promoting human-side benefits of more flexible work

organization Unions have also played a proactive reformist role by pushing

management toward new forms of organization such as group work

Wagar (1997) in his paper investigated the relationship between labor-

management climate and perceptions of productivity product or service quality and

customer or client satisfaction using a regional and national sample of Canadian

organizations and a regional sample of local unions Results reveal a strong

relationship between labor-management climate and measures of organizational

performance with a more positive labor-management climate associated with more

favorable scores on the performance variables

About India DeSilva (1997) concluded that the unions and management which

are social partners after decades of conflict have gradually recognized the importance

of bipartite relations which emphasizes on workplace harmony

Preuss (1998) during a study of Management Cooperation and Hospital

Restructuring in USA found that union labor-management committees improve

communication and ease the process of implementing new hospital practices in

response to changing market demands

Song (1999) wrote that South Korean unionrsquos struggled to promote worker

compliance and commitment to firms and brought the employees back from street

rallies into the workplace

ILO (1999) reported that in countries like Denmark Germany Italy and the

Netherlands governments want to associate trade unions with social and economic

policies which are translated into employmentrdquo and social pacts whereas in the UK

47

and New Zealand during last two decades trade unions and governments relations

have deteriorated and the position of the trade unions weakened by a hostile political

environment ILO report quoted instances of union and state cooperation In Italy

because of state and unions mutual affinity a tripartite pact to promote employment

with special attention to the less developed areas and agreement including significant

elements on educational reform training and the reduction of working time was signed

in September 1996 In Spain trade unions are cooperating with government policies in

regarding job creation and regional development In Greece the General Confederation

of Workers has associated with the State and with employers organizations in

committeersquos formation on the specific problems of long-term unemployment

Similarly in Germany a similar national pact was proposed in Germany but not finally

agreed

ILO report also revealed that trade unions in Singapore cooperated with the

State and the employers in efforts to maintain full employment unions cooperated

with other social partners in attempt to set wages at levels which maximize

employment Unions are members of tripartite committees including National Wage

Council and in the past have accepted temporary wage cuts in order to save

employment About unions cooperation with employer or management ILO reported

that because of trend towards decentralization importance is given to Works Councils

and new institutions like this one example is of Italy where the trade union

movement in agreement with the State and employers associations has created a new

institution in the workplace and all workers can elect representatives from within or

outside the union Majority of seats (in this have been) won by the unions The

employers are reportedly satisfied with the new institutional structure for workers

representation The other example is of South Africa where workplace forums were

created in 1996 in order to establish joint decision-making and consultation between

management and workers at shop floor level

Virmani and Rao (1999) expressed that responsible trade unions in Singapore

are one of attractions of doing business in Singapore because with industrialization

process trade unions have developed disciplinary spirit therein and became conscious

to develop the country economically

48

Wong (2000) also wrote about unions in Singapore that the unionsrsquo approach

to industrial relations moved from conflicting to cooperative after independence of

Singapore And during recent economic crisis the importance of constructive tripartite

relations and the positive role of the labor movement has been highlighted when many

union leaders had been involved in working out mutually acceptable measures to

overcome the recession in 1986 and they reached on a consensus when Government

union leaders and employers were able to gain worker support for wage cuts

Hirsch and Schumacher (2000) referred the analysis of Freeman and Medoff

1984 concluding that Unions have had success in pushing for workplace mandates

applicable to both the union and nonunion workforce as there is strong public demand

for many forms of protection in the workplacerdquo

Hence Aidt and Tzannatos (2001) wrote that unions facilitate worker-

participation and worker-manager cooperation in the workplace This can have

efficiency-enhancing effects that jointly benefit workers and management

Yates (2001) expressed promising views about role of unions in faster growth

of New Economy that unions can overcome certain inefficiencies inherent in the

marketplace and at the same time helping individual workers to fulfill their goals more

easily and at less personal cost However Yates stressed on transformation of unions

which can begin to provide an array of personal services to members and help to

negotiate and to finance contract provisions that provide skill training for workers

Presently when new employers are promoting multi-skilling for workers unions can

help the employers to attain greater flexibility by agreeing to eliminate job

descriptions and allow employers to assign workers to a variety of jobs Unions can

also support employers in their efforts to achieve greater time flexibility through the

implementation of longer work shifts and more elastic shift scheduling and they can

agree to allow the employer to schedule mandatory overtime albeit at premium pay

Unions encouraged higher wages and protected economy in USA About the

union role in economic depression of 1930s Lichtenstein (2002) quoted from his book

State of the Union A Century of American ldquoin the 1930s as political leaders saw the

value of unions Unions offered the opportunity to protect and encourage higher

49

wages resulting in increased consumption and a stronger economy Where the

Depression was seen as the failure of American capitalism labor unions offered a

countervailing force both economic and political Industrial democracy re-enforced

political democracy and so unions were seen especially by the Roosevelt

Administration as important pillars of the American identityrdquo

Labor unions are also extending cooperation in Sustainable Development

According to Conference on Sustainable Development (2001) trade unions want to

cooperate with local and national governments international agencies and other Major

Groups to bring about patterns of decision-making that are consistent with the goals

of sustainable development (CSD 2001)

About Europe Knox (2004) wrote that strikes are rare in Germany and in Volks

Wagens 67-year history there has never been a strike only warning demonstrations to

pressure management Therefore in Germany working days lost to strikes run about

five per 1000 employees a year vs about 43 days in the United States But there have

been several strikes in Germany and elsewhere in Europe in recent months as workers

protest company demands for longer workweeks for the same or less pay The

demonstrations however have been short-lived and the unions usually have backed

down against the threat of layoffs or job relocations Therefore in recent contracts

unions cooperated and gave several concessions to employers such as at Karstadt

Quelle a big retailer in Germany trade unions agreed to a three-year wage freeze in

exchange for a promise the company would cut 5500 jobs through attrition not firing

Similarly in France workers at a Robert Bosch car parts factory voted to work an

extra hour a week without pay to stop the car components company from moving the

work to the Czech Republic

50

25 STRATEGIES AND TACTICS OF UNIONS

For the achievement of objectives of securing benefits for the workers and

solution of their problems unions adopt peaceful and violent means and succeed when

they have strength or fail in their struggle if they have no strength Numerous

researches have highlighted it

Jose (2000) is of the opinion that the unionrsquos capacity to influence depends on

their strength and support among the unionized and non-unionized sections of society

Bryson (2001) opined that the employer and employeesrsquo perception of

legitimacy of union in representing workers interest is influenced by higher union

density and where unions represent most of the workforce they can represent workers

interest with a strong voice

Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos

view large and centralized unions are more functional and influential than fragmented

unions

251 Source of Strength of Unions

Thomas (1999) is of the view that trade union organizations largely derive

their characteristics heritage identity and future strategic options from the parameters

that are set by the country in which they function Jose (2000) expressed that union

success depends on its capacity to incorporate workers rights and interests into

legislation or other regulatory instruments of the labor market For building

institutional capacity the following objectives have been prominent on the agenda of

unions (i) legislative provisions guaranteeing job security unemployment insurance

and special benefits on termination of employment and social security providing for

health care and pension schemes (ii) multi-employer agreements on employment

wages working conditions hours of work and non-wage benefits of workers (iii)

ability to influence economic and social policies through consultation and dialogue

with employers and public authorities

51

2511 Unionsrsquo density and their strength to effect

Jose (2000) wrote that labor legislation collective agreements social security

and minimum wages already in place are clear indicators of the strength and influence

of trade unions They reflected a capacity to influence public opinion and mobilize

action in support of the demands of their constituents In developing countries notably

in Asia unions have had significant achievements in maintaining or upgrading

statutory safeguards on employment and working conditions Nonetheless such gains

are mostly restricted to workers in the formal sector

But to cast influence the unions should be stronger and unions can be stronger

if they have a minimum density called threshold density

Aidt and Tzannatos (2001) are of the view that Industries with high overall

union density tend to have a higher wage markup Mishel and Walters (2003) found

that 30 to 40 is the minimum level of unionsrsquo density to produce any threat effect

Therefore the unionization of 20 in a particular industry may have no impact but

40 unionization may be sufficient to make employers aware of union organizing and

union pay and practices Unionrsquos presence of 60 to 70 may provide as strong a

threat or ability to set standards as unionization of 80 or more Therefore unions

can put a greater effect when density is higher

252 Peaceful Means of Achieving Objectives

Unions adopt peaceful means like negotiation reconciliation arbitration and

suits in the courts as well as violent means like tension strikes and processions for

achieving objectives of securing benefits for workers

In Japan trade unions have achieved improvement through collective

bargaining on pay working hours fringe benefits and in house welfare programs

Unionsrsquo efforts have become more important in recent years (Inoue 1999)

Among the peaceful means of obtaining objectives is Collective Bargaining

Jose (2000) reported that the value of collective action initiated by unions for attaining

common objectives is now widely recognized by a broad spectrum of interest groups

52

But unions have moved from collective bargaining to voice in continental Europe and

Japan due to high density of unionism There is growth of trade unions from the

collective bargaining function towards a role dominated by voice and representation of

workers The broad membership base which unions commanded and the equitable

distribution which they promoted in major sectors and enterprises strengthened the

position of unions giving them more power to bargain or collaborate and to derive

successful outcomes

253 Violent Means

When the peaceful means are not successful in achieving the objectives then

unions go on strikes Unions have resorted to this option according to following

researches

Colman (2000) wrote about USA that in 1824 women and men in a textile

factory in Pawtucket Rhode Island led the countryrsquos first strike demanding the owner

to reverse his decision to increase work day by one hour and cut their wages After

four years women went on strike in Dover New Hampshire demanding the

elimination of ban on talking at work and fine to employees 125 cents for being one

minute late In 1831 1600 women tailors in union of tailorsrsquo society in New York

struck for higher wages In 1834 in Lowell Massachusetts over 800 looms and

spindle operating women in the textile mill called a strike to protest wage cut

In Israel Before 1995 the famous labor union Histadrut seldom resorted to

general strikes in the public sector but since July 1997 The New Histadrut has

called three extensive strikes In July 1997 strikes were of government owned

corporations in December 1997 and in September 1998 the entire public sector went

on strikes During the strike in September 1998 the threatened closure of Ben-Gurion

International Airport contributed to reaching an agreement (Nathanson and Associates

1999)

CLR reported that in June of 2000 workers at the Duro (a gift bags

manufacturing firm) plant in Rio Bravo (Mexico) went on strike to establish an

independent union and forced the reinstatement of their elected leaders who were

53

illegally fired as a result of strikes Mexican government officials in August 2000

granted official registration as first independent union to the Duro workers (Carty

2003)

Unions weakened due to effects of Multi National Companies and

Globalization According to UNDP (2000) report conventional weapons of strikes

boycotts and demonstrations became useless because of emergence of MNCs and

Globalization unionrsquos power has weakened In the past labor groups could combat

with economic power of employer by seeking redress at the national level appealing

to sympathetic politicians and government officials to enact protective labor

legislation or alternatively labor unions could resort to offensive strategies like

strikes boycotts and demonstrations Unions could rely on this power because capital

in the past was immobile but in present era if these techniques are exercised capital

will move across the borders therefore the labor unionrsquos conventional weapons

strikes boycotts and demonstrations have became ineffective and unions have been

rendered weak

26 CORRUPTION OF UNIONS

Though unions exerted efforts for securing benefits gaining respect and

building a fearless atmosphere for their workers but unionsrsquo history is also plagued by

corruption which has been brought to light by following researches

261 Corruption and Selfishness of Officials

Ware (1935) wrote that labor leaders in USA are trade unions officials and

they have been accused of the complete unconcern for any worker but the members of

their own craft union interest in holding their own job a close association and

cooperation with employers in dealing with industrial problems and racketeering

For unions in Pakistan Khan (1992) expressed that the numerical increase of

trade unions leads to personal rivalry of union leaders competing for command over

small unions The trade unions leaders fight among themselves instead of fighting

54

against management or government and every leader is status seeker caring more for

his own prestige and image than to cause of common worker or unionism

Pencavel (1995) opines about union pluralism that a policy permitting the

formation of more than one union per enterprise will lead to disputes and rivalry

among unions He quoted the example of the situation in the Indian sub-continent

where the strength of unions is sapped through disputes among themselves rather than

in bargaining with employers

Bezuidenhout (2002) narrated that in South Africa Industrial and Commercial

Workersrsquo Union (ICU) was also plagued by internal corruption and bureaucratization

According to a report of Weinstein (1996) in USA during two decades LIUNA

(Laborers International Union of North America) officials have recorded over 80

convictions for crimes ranging from racketeering to bribery extortion tax evasion

and even of attempted murder

Horowitz (1999) reported about USA that unionrsquos corruption is not a new

phenomenon but as government reports documented even in the 1920s among

construction trade unions in New York City a widespread corruption and racketeering

was also prevailing

262 Financial Corruption

Weinstein (1996) wrote the instances of unions financial corruption eg the

House Judiciary Committees Subcommittee on Crime (in USA) held hearings that

union official lent $100000 of LIUNA money to the Clinton Inaugural Committee

and in 1993 and 1994 the Laborers Political League (LPL) donated over $1 million to

Democratic Party congressional candidates During 1995 and the first quarter of 1996

the LPL has contributed $747000 to over 200 liberal congressional candidates

Weinstein and Wieglus (1996) expressed that unions keep the workers ignorant

from their rights for example Labor Secretary Robert Reich who frequently proclaims

the Clinton Administrations concern for workers rights told the AFL-CIO recently

that collective bargaining is not a privilege it is a right Yet the Administration has

55

cooperated with union officials to keep workers in the dark on their Beck rights They

further quoted example of AFL-CIO for the misuse of unionrsquos funds for political

campaigns as AFL-CIO has launched $35 million voter education project funded

mainly with mandatory union dues to defeat conservative members of the 104th

Congress

Horowitz (1999) brought in to light that the Federal Election Commission in

(USA) reported that soft donations by labor unions to national political parties

during the 1997-98 election cycle totaled some $8 million nearly all of it to the

Democratic Party

In the research report conducted in USA Sherk (2006) expressed that it is true

that union members elect their leaders but union leaders appear to pursue an agenda

disconnected from the concerns of their members Some unions are heavily involved

in political activism they spend their membersrsquo mandatory dues to elect candidates

favored by the union leadership which means union leaders pursue an agenda that

their members do not support Therefore several states have passed ldquopaycheck

protectionrdquo laws that require unions to obtain written permission from their members

before they can spend membership dues on political causes He further wrote that

unions received from their members annual dues averaging $125 per member in 2004

and used only a portion of that money to represent their members Americarsquos 10

largest unions used an average of only 30 percent of their dues to represent their

members and negotiate with employers and spent the other 70 percent on lobbying

political activities gifts grants overhead and compensation for their staff These

other activities might or might not reflect the priorities of the unionrsquos membership

Unions generously spend their membersrsquo mandatory dues on politics He quoted that

in 2005 a non-election year the AFSCME (American Federation of State and County

Municipal Employees) spent almost 20 percent of its budget on political activities and

lobbying The AFL-CIO spent 30 percent of its budget on the same causes In the 2004

elections both these unions gave over 97 percent of their donations to Democratic

candidates Despite of misusing members contributed funds union leaders do little to

inform their members of many of their activities and it is doubtful whether union

56

members would approve of many of the decisions of their leaders Misplaced union

priorities extend beyond six-figure salaries and comfortable retreats for union bosses

2621 Embezzlement examples

Horowitz (1999) quoted many examples of unionrsquos office bearers

embezzlement in his report such as Bernard Rubin president of South Floridarsquos

Laborerrsquos District Council was convicted in 1975 on embezzlement racketeering and

tax evasion He misappropriated more than $350000 in union funds Similarly in

April 1998 a federal court convicted Eileen Cibellis former longtime office manager

and fund administrator for the Bloomfield New Jersey-based District Council 10 of

the International Brotherhood of Painters and Allied Trades for embezzling more than

$400000 from union funds There are other examples such as Carol Sue Fisher a

former bookkeeper for the local Paintersrsquo union in Evansville Indiana in 1992

pleaded guilty to embezzling some $135000 from the union fund John Ducey the

former financial secretary and business manager of the Carpet Linoleum and Resilient

Tile Layers union received a prison sentence for embezzling more than $51000 A

federal jury of embezzling union funds found George Osley Jr secretary-treasurer of

Laborers Local 872 in Las Vegas guilty of embezzlement of unionsrsquo funds The

National Maritime Union (NMU) a representative of some 2000 unlicensed seafarers

working on US flag commercial ships deserves special mention as over the years it

has served as a private bank for its leaders In January 1997 NMU President Louis

Parise Sr had to resign and sever all connections to the union following his

conviction in federal court on racketeering and embezzlement to the tune of more than

$700000 Robert Hickerson former business manager of Local 919 in Quincy

Illinois in 1982 was sentenced to three years in prison for embezzling union funds

and hiring vandals to smash more than $250000 worth of equipment owned by non-

union contractors In Lancaster NH Paul Wilson former treasurer of United Paper

workers Local 61 in 1993 was sentenced for theft of more than $67000 in union

funds This year Robert Kellas a former official of an amalgamated Transit Union

local in Bellingham Washington pleaded guilty to embezzlement of up to $120000

from the union over a four-year period These were few examples otherwise report has

numerous other events worthy to be mentioned but they would render the thesis very

57

lengthy Horowitz in his report wrote for different types of unionrsquos corruption in USA

and quotes numerous events eg ldquoIn New York City in 1995 federal investigators

discovered that around $8 million had vanished from the pension fund of Teamsters

Local 875 Local 875 had a long history of corruption in the previous 25 years five of

its officers and financial advisers were convicted of embezzlement or accepting

payoffs to keep labor peacerdquo He further wrote ldquoFor good measure the AFL-CIO in

1957 expelled the Teamsters for corrupt practices in the light of widely-publicized

hearings before Government Operations Committee headed by John McClellan

Arkansas Democrat in the Senate

Sherk (2006) in his report about American unions also quoted examples of

suspected incomes of unionsrsquo leaders such as Gerald McEntee president of the

American Federation of State and County Municipal Employees earns $580000 a

year from the dues paid by his unionrsquos far less compensated members The president

of the National Education Association earns $439000 a year which is almost ten

times what the average teacher earns It means union elected leaders earn salaries

several times larger than those paid to members of Congress Unions also spent over

$7 million in 2005 to hold conferences and workshops at resorts including the

Pheasant Run Resort amp Spa near Chicago and the Palm Springs Riviera Resort in

California a use of funds which also may not reflect their membersrsquo priorities Sherk

further quoted that unions pay for political campaigns from members contributions

and Supreme court in a suit ldquocommunication workers versus Beck (1988)rdquo established

a precedent that workers can not be forced to donate to political causes and are

entitled to demand the refund of the portion of their dues spent for political cause but

unions erected roadblocks in front of the workers who wanted to exercise their Beck

right

263 Unionsrsquo Officers Monopoly

Union officials enjoy what amounts to a monopoly and these union

monopolies shielded from competition provide them lax from accountability toward

the people they serve and individual worker or a group of workers demanding

accountability from their union may be risking their jobs or safety Union funds to pay

58

nonexistent employees is a common way of rewarding friends at the expense of

dues-paying rank and file Horowitz (1999)

Brohawn (nd) is of the view that in some cases it can be fairly said that

unions have empowered their leaders not their members

Ghayur (1996-b) wrote that in Pakistan the labor leaders are feudal minded and

they never bothered to make their action accountable to the members

264 Bribes (Extortion and Pay-off)

Horowitz (1999) Revealed in his report with example that the Construction

trade unions are notorious for extortion from contractors by threatening labor

problems such as work slowdowns disruption sabotage or assault In the 1980s a

civil suit against Local 6A of the Cement and Concrete Workers of the Laborers

International Union of North America (LIUNA) alleged that the local its district

council their officers and certain organized crime figures extorted one percent of the

contract price from ready mix contractors by threatening labor problems For a while

that bought labor peace FBI investigation of building trades practices in Long Island

led to the indictment of the president of the District Council of Carpenters and five

other union officials connected to organized crime families for extorting more than

$100000 from a drywall contractor In Philadelphia Joseph Fiorelli founder and

former boss of Local 1955 of the Drywall Finishers Union was sentenced to more than

10 years in prison on extortion payoffs from contractors theft of union funds and

racketeering charges Fiorelli had extorted payments from 25 contractors from 1967 to

1991 Contractors testified that in exchange for their payments Fiorelli gave them

labor peace and allowed them to sometimes use nonunion workers and to delay or

avoid payments to the unions health and welfare fund

About Bribery for securing jobs Horowitz expressed that unions protect their

members from competition by non-union members But when a contractor or

employer decides to hire non-union labor the unscrupulous unions make life

uncomfortable for contractors until they hire union labor or allow the contractor to

hire nonunion labor--if the price is right In 1981 Louis Sanzo president of Local 29

59

of the Blasters Drill Runners and Mines Union in Queens NY affiliated with

LIUNA and the others took a combined $400000 in payoffs from construction firms

to buy labor peace The owner of a Florida-based construction firm said he tried to get

out of the deal but Sanzorsquos men threatened to kill him his wife and three children

The contractor would say in his bid that he needed 30 men and he would be paid for

30 men by the people who hired him to do the job But then Local 29 would send over

only 15 men They could keep the rest of the money

265 Sound Labour Relations at the Workplace no Important Concern of Employers and Unions

Unions some times do not take interest for sound labor relations - especially at

the workplace De Silva (1997) wrote that in many South East Asian countries and

republic of Korea sound labor relations have not been an important concern of

employers and unions

Bacon (2005) expressed that in USA George Meany and Lane Kirkland AFL-

CIO leaders treated unions as a business representing members in exchange for dues

while ignoring the needs of workers as a whole

CHAPTER 3

HISTORY AND LEGAL FRAME WORK OF UNIONIZATION IN PAKISTAN

According to Khan (1992) the Industrial Relations is an art It is an art of living

together for purpose of production Industrial Relations System is a sub system of the

society and studies the web of rules and regulations that binds the workers and

managers in a working group In industrial relations three actors play their part

employer through management workers through unions and consumer through state

However this system varies from country to country or region to region

ILO (1999) categorized the countries according to the degree of influence

exerted by trade unions on government policies In some countries unions have a

decisive voice and they can influence social pacts as well as the human rights agenda

through trade policies In other countries governments can ignore the unions without

incurring major problems so in these cases unions have little influence on social

policy or human rights concerns Therefore two different patterns of unionsrsquo role

emerge reflecting regional differences In developing countries trade unions are

searching for a new identity while in the industrialized countries they are trying to

gain lost ground through membership campaigns

Thomas (1999) asserted that trade union organizations largely derive their

characteristics heritage identity and future strategic options from the parameters that

are set by the country in which they function

Similarly Wong (2000) wrote that the industrial relations system in each

country is rooted in different historical political socio-economic cultural and

environmental contexts and it makes it difficult to replicate one system in another

context So this research is focused on the study of the role of Pakistani Labor Unions

working in quite different political cultural and legal environment

61

Khan (1992) expressed that every industrial relations system must fulfill

function of defining the rights responsibilities and objectives of the government

employers and employees and establishing power structure among them controlling

and channeling the responses of managers and workers that arise due to

maladjustment frustration dislocation and insecurities inherent in industrial process

and establishing a net-work of rules These rules include things like recruitment

commitment level of compensation the wage structure and procedure for settlement

of disputes

In Pakistan the system of industrial relations is legalistic and government is a

regulator and has framed out laws for industrial relations and unions are formed and

function in the same framework of laws These laws are of two types First type of law

concerns with union making and that is IRO 2002 and second type is of laws granting

rights to which unions have to get implemented and exact the rights granted therein

for workers Besides this unions have to struggle for the rights which are not given yet

in law and also have to get the laws promulgated for grant of these rights The history

of emergence and evolution of legal framework in Pakistan is given below

31 HISTORY OF LEGISLATION

According to Shafiq-ur-Rehman (2003) the history of Labor Legislation dates

back to 1875 when the government of Bombay appointed a Factory Commission on

whose recommendations the Factories Act 1884 was promulgated Committee of

Inquiry was appointed in 1906 and Factory labor commission in 1907 and upon their

recommendations Indian Factories Act 1922 was passed and subsequently Trade

Union Act 1926 and Trade Dispute Act 1929 were also passed

The laws governing the formation of unions in Pakistan have passed through a

process of evolution during last eighty years Their chronological evolutionary steps

are reported below

62

311 Laws Permitting Establishment of Unions

In 1914 in Indo-Pak subcontinent there were more than a million workers

employed in 2936 factories besides a large number of workers employed in railways

mines plantation and government departments who were originally peasants pushed

towards factories by poverty After World War - I (1914-1918) the economic

conditions of these workers went worse as wages could not keep pace with rise in

prices There was acute distress and discontent among the workers but the industries

developed over the period were experiencing prosperity This led them to form unions

to demand increase in wages

In 1919 ILO was established and that gave recognition as well as big support

to trade union movements Consequently a substantial number of unions were formed

in subcontinent of Indo-Pak (from which Pakistan parted in 1947) in 1920s but many

of them were temporary like strike committees being formed at the outbreak of

strikes and disappeared with its end The Indo-Pak Legislative Assembly passed a

resolution in 1921 in favor of registration and protection of trade unions As a result of

this resolution the legislature passed the Trade Union Act 1926 This act recognized

the workers rights to organize and form trade unions and laid down that any seven

persons or more forming trade unions could seek their registration of trade union and

this registered trade union was not to be considered a body unlawful in restraint of

trade However this law laid down penal clauses for violating any of the restrictions

imposed or for providing false information to the Registrar of Trade Unions After

independence in 1947 the government of Pakistan adopted the Trade Union Act 1926

and it remained in enforcement as major piece of legislation up to 1960 No doubt this

law has provided protection to the workers to combine for improving their

employment conditions and from being considered anti-state activity But the law has

a serious draw back that it was not providing unions the recognition of bargaining and

protection to workers from employersrsquo discrimination for union activity In 1960

Trade Union (Amendment) Ordinance 1960 was passed to amend and improve the

previous Act According to new law the recognition of trade union on employer was

obligatory and registered union was granted the right to negotiate with the employers

in matters concerning employment un-employment the terms of employment and the

63

conditions of work of all or any of its members The employer was bound to receive

and reply to letters from and to grant interviews to executives of union in connection

with any such matter The employer could with draw his recognition but with the

permission of labor court The previous maximum 50 percent limit of number of office

bearers from outsider was reduced to 25 percent in this law The trade unions were

required to maintain subscription register account books and membership list In this

law clauses for ldquounfair labor practicesrdquo both on the part of unions and employers and

the penalties in cases of breach of these clauses were also added Another ordinance

under name of Trade Unions (Amendment) Ordinance 1961 was passed to make

amendment to debar outsiders from becoming officer of union unless they were full

time paid employees of that trade union After the promulgation of Constitution of

1962 all the labor matters including legislation were transferred to provinces (East

Pakistan and West Pakistan) So a further ordinance ldquoWest Pakistan Trade Unions

Ordinance 1968rdquo was passed that made amendment to enhance powers of ldquoRegistrar

Trade Unionsrdquo empowering him to interfere with the conduct of unions even after its

registration to order an inquiry in the matters of unions if he thought that the funds of

a union were likely to be misappropriated The registrar could ask the union to curtail

the number of office bearers if it seemed disproportionate to the total number of its

membership Without the permission of the Registrar the employer was not to

discharge or dismiss or otherwise victimize an office bearer of trade union during the

pendency of its application for its registration The registration certificate could be

cancelled if the union participated in an illegal strike or go-slow A federation with

membership of at least seven registered unions could seek registration The registered

federation could have 50 percent of its office bearers from among the workers who

were not engaged industry or industries with which federation was concerned This

ordinance restricted the eligibility only to those unions which had minimum

membership of workers 10 percent of the total workmen employed or 100 whichever

is less The age to be office bearer of union was 21 years for employees and 25 years

for outsider Khan (1992)

64

312 Laws for Settlement of Disputes

Before IRO 1969 there were different sets of laws permitting union making

and for settlement of disputes The foremost law pertaining to settlement of

employers employee dispute was Employers and Workers (dispute) Act 1860 This

act provided for the determination of disputes relating to wages of workers employed

in the construction of railways canals and public works and breach of contract by

workmen was a criminal offence The cases of dispute were handled by magistrates

Later on Trade Dispute Act 1929 was enacted which provided for ad-hoc machinery

enabling the government to establish the Court of Inquiry and Conciliation boards

Industrial Dispute Act 1947 was enacted to provide hierarchy of institutions for

bringing out harmonious collective relations between the employers and the workmen

through work committees Conciliators board of conciliation Court of inquiry failing

which the settlement was arrived at by adjudication by a reference to an Ad-hoc

Tribunal The industrial establishments were classified in two categories Public

Utility Services and Non Public Utility Services Public Utility Services included any

Railway Service and section of an industrial establishment on the working of which

safety of establishment or workmen depended any postal telegraph and telephone

service any industry which supplied power water and light to public any system of

public conservancy or sanitation any undertaking establishment or installation

relating to defense services any service incidental to the operations of ports and any

such industries as transport coal cotton textile food stuff iron and steel as declared

by the government to be public utility service for a period of six months at a time

Industrial Dispute Ordinance 1959 changed industrial relations by further enlarging

the scope of term public utility services by including all types of industry later on

West Pakistan Industrial Dispute Ordinance 1968 was passed wherein provincial

government assumed the power to prohibit strike or lockout existing or apprehended

in public interest or for the maintenance of essential services or supplies (Khan 1992)

313 Industrial Relations Ordinance 1969

The Industrial Disputes Act (IDA) of 1947 was passed in April 1947 It made

no provision for procedures to determine the representative union what would

65

normally be a single bargaining unit Employers were under no legal obligation to

bargain with unions so there were no built-in incentives for either party to engage in

collective bargaining Therefore this right has been given in IRO 1969 The Industrial

Disputes Act 1947 also made it very difficult for the unions to call a legal strike

There were also problems in the Indian Trade Union Act of 1926 The Act allowed

any seven workers to register their trade union but made no provision for union

recognition (eg through a secret ballot procedure)

To remove the shortcomings of the labor legislation and address the workers

unrest because of political disturbance of ending years of regime of president Ayub

Khan and to create industrial harmony and peace government promulgated Industrial

Relations Ordinance (IRO) 1969 The objective of the IRO 1969 was to facilitate the

formation of trade unions and to provide simple procedure for their registration It was

primarily meant for regulating the employer employee relations and to determine

collective bargaining agent to arrange for the adjustment of conflicting interests by

collective bargaining to provide machinery (institutions) for just and equitable

settlement of disputes by conciliation voluntary arbitration and adjudication between

workers and employers with a right of representation by a registered trade union or

federation of trade unions or association of employees to prevent strikes and lockouts

and to provide relief of workmen in matters of employment relations

It was a comprehensive law and it consolidated the laws relating to

registrations of unions and laws relating to settlement of disputes Before this both

were dealt with different laws At different times establishments of unions were dealt

under Trade Unions Act 1926 Trade Union (Amendment) Ordinance 1960 Trade

Unions (Amendment) Ordinance 1961 and West Pakistan Trade Unions Ordinance

1968 where as trade disputes had been dealt under Employers and Workers (dispute)

Act 1860 Trade Dispute Act 1929 Industrial Dispute Act 1947and Industrial

Dispute Ordinance 1959

According to this law the formation of trade unions was expressly recognized

and there was provision for their registration A certified and duly elected registered

trade unions in industrial undertaking or an establishment could be taken as collective

66

bargaining agent and only collective bargaining agent could raise a dispute and take

bilateral negotiations within ten days of issue of charter of demand This law in

conjunctions with West Pakistan Industrial and Commercial (Standing Orders)

Ordinance1968 made it legally difficult and expensive to fire any worker and

developed a comprehensive measures relating to the terms and conditions of

employment and work procedure of handling grievances enforcement of discipline

and to regulate on the job relations within the establishment The IRO 1969 however

excluded the persons employed in Police Defence Services of Pakistan in the

Services and installation of Armed Forces and public services This Ordinance was

amended in 1971 to remove certain administrative difficulties amended twice in 1972

to insert provision of junior labor courts Amended in 1973 to allow 20 percent

workers participation in management and system of shop stewards was introduced

and a standing National Industrial Relation Commission (NIRC) was appointed Law

was amended in 1975 and a wage commission was created to determine the economic

disputes in banking industry and other financial institutions Again amended in 976 to

incorporate the principle ldquoone worker one unionrdquo to check the multiplicity of unions

to delete the provision of junior labor courts and to raise the strength of workers

representatives in Management Participation Committee to 50 percent Here the

power was taken to highest echelon through Joint Management Board To make the

works council to be a forum of joint negotiation law was amended in 1977 Final

amendment was made in 1979 This law has been repealed vide section 80 of IRO

2002

32 RIGHT OF UNIONIZATION

Right of unionization has been derived in Pakistan from UNO declarations

ILO conventions ratified by government of Pakistan and Constitution of the State

321 United Nationsrsquo Declaration of Human Rights

Articles 23 and 24 of the UNOrsquos Declaration are for workers favor besides

permitting the formation of labor unions (Wikipedia-b)

67

Article 23

1 Everyone has the right to work to free choice of employment to just and

favorable conditions of work and to protection against unemployment

2 Everyone without any discrimination has the right to equal pay for equal

work

3 Everyone who works has the right to just and favorable remuneration ensuring

for himself and his family an existence worthy of human dignity and

supplemented if necessary by other means of social protection

4 Everyone has the right to form and to join trade unions for the protection of his

interests

Article 24

1 Everyone has the right to rest and leisure including reasonable limitation of

working hours and periodic holidays with pay

322 ILO Conventions

To enable us to identify the basic union rights it is necessary to have a glimpse

of the International Labor Organization Conventions No 87 and 98

According to Convention No 87 workers and employers shall have full

freedom to organize themselves The organizations shall draw up their own

constitution and rules elect their leaders in full freedom and organize their

administration and activities without any interference by the government The

organizations shall not be dissolved or suspended by the administrative authority

which is the government

Government should impose no condition on the organizationsrsquo right to

establish or join a federation or confederation and to affiliate with international

68

organizations Granting of legal personality shall not involve restrictions on the above

rights Pakistan has ratified it on 14th February 1951

Under Convention No 98 it is the responsibility of the government to protect

workers against anti-union discrimination and victimization by employers and against

domination of workers organizations by any acts including financial contributions

The government should also establish machinery for the purpose of ensuring respect

for the right to organize Pakistan has ratified it on 26th May 1952 These rights

adopted by the ILO are more or less based on the lsquoUniversal Declaration of Human

Rightsrsquo Workers especially need these guarantees to protect themselves against

exploitation by employers who wield financial power and political influence

323 Constitution of Pakistan

The article16 and 17 of constitution of Pakistan have given a general right to

organize and form association to the workers

Article 16 is about freedom of assembly and says ldquoEvery citizen shall have the

right to assemble peacefully and without arms subject to any reasonable restriction

imposed by law in the interest of public orderrdquo

Article 17 is about freedom of association and says ldquoEvery citizen shall have

the right to form association or union subject to any reasonable restriction imposed by

in the interest of sovereignty or integrity of Pakistan public order or moralityrdquo

33 PRESENT ENFORCED LAWS

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo

Presently trade unions are formed and function according to IRO 2002 This

ordinance was promulgated in 2002 to amend consolidate and rationalize the law

relating to formation of trade unions regulation and improvement of relations between

employers and workmen and avoidance and settlement of any difference or disputes

arising between them A summery of main provisions of this ordinance regarding the

right of unionization and protections given to unions their functioning functioning

areas and limitations in IRO 2002 is given here

69

1 It allows the formation and joining of trade unions to workers and formation of

association to employers (section 3) and allows these unions and associations

to join respective federations allows federations to join confederations and

these federations and confederations can affiliate with international

confederations (section 18) However this law restricts a worker to be a

member of more than one trade union at any one time Law also binds that

every collective bargaining agent union shall have to affiliate with any

federation at the national level registered with the National Industrial Relations

Commission within two months after its determination as collective bargaining

agent or promulgation of this Ordinance whichever is earlier

2 It specifies the registration process (section 4) requirements for registration

(section 5 and 6) cancellation of registration (section 12) and appeal against

cancellation (section 13)

3 It provides safety to office bearers of trade union from victimization in the

form of transfer discharge or dismissal for applying for registration (section

10) and fine up to 20000 rupees for violation (section 65)

4 It provides the facility of Collective Bargaining Agent to a single union if it

has members not less than one-third of the total number of workmen if there

are more than one unions then who wins the referendum (section 20) and

identifies the bargaining and non bargaining issues

In Pakistan Collective Bargaining has its own Perspective Shafiq-ur-Rehman

(2003) expressed that collective bargaining in Pakistan instead of the issue of

wage rise typically covers a much wider range of issues including pecuniary

terms of employment (such as non statutory allowances and benefits) and non

pecuniary conditions of employment including job security and working

conditions (such as safety of work place and methods of production)

5 To meet the expenses this law allows the unions to collect the subscription by

check-off (section 21)

70

6 It contains provisions about workersrsquo participation in the management of

establishment For this it permits the establishment of Joint Works Council

According to section 24 every establishment which employs fifty persons or

more shall set up a Joint Works Council consisting of not more than ten

members in which workers participation shall be to the extent of forty per cent

and the Convener of the Council shall be from the management and the

employers representatives shall be from amongst the Directors or their

nominees and the workers representatives shall be the office bearers of

collective bargaining agent The Joint Works Council shall deal the matters

like (i) improvement in production productivity and efficiency (ii) provision

of minimum facilities for the workers employed through contractors as are not

covered by the laws relating to welfare of workers (iii) promoting settlement

of differences through bilateral negotiations (iv) promoting conditions of

safety and health for the workers (v) encouraging vocational training within

the establishment (vi) taking measures for facilitating good and harmonious

working conditions in the establishment (vii) provision of educational

facilities for children of workmen

7 It defines industrial disputes and provides for negotiation between employer

and workers to reach settlement (section 25) conciliation in case negotiation

fails (section 26 to 29) Arbitration in case conciliation also fails (section 30)

and finally a court award binding on all parties (section 33) It also provides

facility of appeal in high court against labor courts awards (section 48)

8 It gives right of strike to workers and lock out to employers to press for their

just demands (section 31) and authorizes government to prohibit strikes in any

public utility service establishment (section 32)

9 It contains provisions about labor courts (section 44) their functions powers

procedure and awards (section 45 46 and 47)

10 It also provides provision about National Industrial Relations Commission and

its functions and powers for registration of industry wide unions and settlement

71

of their disputes (section 49 to 53) and dealing with unfair labor practices

(section 63 and 64)

11 It identifies unfair labor practices on the part of employers (section 63) and

unfair labor practices on the part of workmen (section 64) and penalties for

unfair labor practices (section 65)

It defines rights and duties of employers and rights and duties of workers

(Schedule II) as

Employers Rights

(a) Right to conduct business-The employer shall have the right to manage

control and use the property of his enterprise and conduct his business in any manner

considered appropriate by him

(b) Right to manage-The employer shall have the right to use available resources

including human resources efficiently and effectively in the best interest of the

enterprise

Employers Duties

(a) While exercising the right to conduct business and the right to manage the

enterprise the employer shall act in accordance with the law and shall comply

with the law faithfully

(b) The employer shall protect rights of the workers as guaranteed under the law or

secured to them by any award agreement or settlement in force

(c) The employer shall protect and safeguard the interest of his workers and take

measures within his resources for their socio-economic uplift and welfare He

shall create an environment congenial for enhanced productivity of labour and

maximum output of the enterprise

(d) The employer shall respect the right of the workers to employment wages

decent living and better quality of working life

72

Workers Right

(a) Right to work wage and welfare It is the right of a worker to work

according to the job assigned and to receive wages as per agreed terms and conditions

of employment and to such welfare benefits and safety measures as one is entitled to

according to law agreement settlement and award

(b) Right to freedom of association and collective bargaining and other rights

secured or guaranteed under this Ordinance and other laws Worker has inherent

right to trade unionism and collective bargaining and the right to enjoy the benefits

guaranteed to him under the law rules and regulations settlement award or

agreement

Workers Duties

(a) Worker will perform his duty as assigned by the employer or his

representative according to his best ability with due diligence care honesty

and commitment

(b) Worker will fully observe norms of organizational discipline

(c) Worker in exercise of his right will fully respect the rights of the employer

and will cooperate with him in the efficient performance of the business of the

establishment or enterprise as the case may be

332 Labor Laws Granting Rights

3321 Workmen compensation Act 1923

This act provides for the payment by certain classes of employers to their

workmen of compensation for injury or death by accident

3322 Factories Act 1934

It governs the working conditions of the industrial workers and consolidates and

amends the law made from time to time by provincial governments for regulating labor

73

in factories It is applicable to factories where 10 or more workers are working or were

engaged to work on any day of the preceding 12 months This legislation regulates

working hours paid holidays and conditions of employment of workers It also

provides for hygienic and safe working conditions and environment labor inspection

submission of various returns by employers penalties for violation of provisions of act

and employment of welfare officer by factories employing more than 500 workers

3323 Payment of wages Act 1936

This law defines wages and regulates the conditions of payment of wages to

workers It is applicable to workers employed in factories railways transport

plantation workshops and establishments of contractors According to this law

employer shall pay wages to workmen in the current currency on a working day before

the expiry of the tenth day after the expiry of the wage period and no wage period will

exceed one month

3324 The minimum wages Ordinance 1961

There was no law to provide for the fixation of minimum wages particularly for

large number of workers of smaller establishments who had no bargaining capacity

with employer With this consideration government of Pakistan Promulgated the

Minimum Wage Ordinance 1961 with the objective to create an institution to determine

minimum wage rates for different categories of workers in different industries

Consequently Tripartite Minimum Wage Boards were formed in all the provinces with

powers to examine the general price level ability of the establishment to increase

wages and other relevant factors for determination of minimum wages and refer them

to concerned provincial government

3325 Social Security Ordinance 1965

This law is applicable to all industrial and commercial establishments and

provides for a scheme of social security of insured employees and their dependents in

the event of sickness injury or death The employers pay contribution to the provincial

Social Security Institution at the rate of 7 of the wages of insured person

74

3326 The industrial and commercial employment (standing order) Ordinance 1968

This ordinance lays down the minimum terms and conditions of employment of

workers in industrial and commercial undertakings where 20 or more workmen are

employed or were employed during the preceding 12 months The ordinance provides

for payments of bonus group incentives schemes group insurance gratuity provident

fund termination and dismissal from employment redundancy re-employment of

redundant workers etc

3327 The companies profit (workersrsquo participation) Act 1968

This law is applicable to industries or establishments employing 50 workers or

whose paid up capital is Rupees 2 million or whose value of fixed assets is 4 million

Employers of these industries are required to allocate 5 percent out of their net profit

among the workers Any amount left over after distribution of the workers shares as

laid down under the rule is transferred to the Welfare Fund established under the

provisions of workers Welfare Fund Ordinance 1971

3328 The shops and establishments Ordinance 1969

It was enforced with effect from 30th June 1969 This ordinance was to amend

and consolidate the law relating to the hours of work over time weekly and festival

holidays annual casual and sick leaves time of payment of wages and other terms and

conditions of work and employment in shops and commercial industrial and other

establishments and matters connected therewith

3329 The minimum wages for unskilled workers Ordinance 1969

Government of Pakistan promulgated this ordinance in order to provide

minimum wages to unskilled workers of the industrial and commercial undertakings

employing 50 or more workers The minimum wages have been revised from time to

time Fixation of minimum wages during last fifteen years is given here

75

Period Minimum Wage in Pak Rupees

From Ist July 1993 1500-

From 1st July 2001 2500-

From 1st July 2005 3000-

From 1st July 2006 4000-

From 1st July 2007 4600-

From 1st July 2008 6000-

33210 Workers welfare fund Ordinance 1971

This law provides for establishment of workersrsquo welfare fund for providing

residential accommodation financing other welfare measure including training re-

skilling and investment in securities approved by government For this fund initial

contribution of 10 crores rupees (100 million) was made by Federal Government and

every industrial establishment having income of one hundred thousand rupees or more

in a year is required to pay 2 percent of its income in this fund

33211 Workers children (education) Ordinance 1972

This law provides the payment of Rupees 100- per annum per worker by

employer to the provincial government and government in return provides free

education up to matriculation level and thereafter in poly technique or vocational

institutes to the children of workers

33212 Employees cost of living (relief) Act 1973

Government promulgated Employees Cost of Living (Relief) Act 1973

applicable to undertakings construction industries factories mines road transport

services newspapers establishments The purpose of this law was providing payment

of cost of living allowance to workers to overcome the adverse effects of inflation on

their purchasing power It had been amended and improved with the passage of time It

76

was promulgated first time on 17th September 1973 and enforced from 1st August

1973 but later on re-enacted by parliament in December 1973 Initially parliament was

empower to amend the allowance from time to time but later on Ministry of Labor as

empowered to grant increases in the Cost of Living Allowance through notification

33213 Employees old age benefit Act 1976

This law provides for old age benefits to persons employed in industrial and

commercial establishments This law is applicable to industry and establishment

employing 10 or more workers Employers contribute 5 of the wages of secured

person employed to the Old Age Benefit Institution The male employees after

attaining 60 years and female after 55 years can receive monthly pension The

survivors of the employees are also entitled for this

333 Labor Policies

The Industrial Relation laws of Pakistan were gradually improved through

amendments in existing laws and enacting fresh laws so that provisions may become

compatible to the changing socioeconomic conditions of the country and any further

change in future It was done through labor policies Since independence five labor

policies have been announced by the government in the years 1955 1959 1969 1972

and 2002 which laid-down the parameters for the growth of trade unionism the

protection of workersrsquo rights the settlement of industrial disputes and the redress of

workers grievances These policies covered a broad spectrum of issues and envisaged

to provide for permanent transformation of laws to meet the expanding industrial base

of the country These policies also provided for compliance with international labor

standards ratified by Pakistan The effects of policies are reflected in the

metamorphosis that the labor laws underwent after the implementation of these

policies Here is a brief of these policies

3331 First policy (1955)

It was announced in August 1955 for achieving following objectives

i The growth of healthy unionism

77

ii Settlement of disputes through joint consultation

iii Protection of workers rights

iv Maintenance of industrial peace and harmony in labor management

relations

v Speedy settlement of industrial disputes through adjudication and

effective implementation of awards and

vi Welfare of workers and avoidance of their victimization and

exploitation

3332 Second policy (1959)

It was announced in February 1959 under following guiding principles

i Promotion of healthy unionism

ii Promotion of sound labor management relation

iii Provision of settlement of industrial disputes through peaceful means

iv Provision of social amenities as health education wages etc in

relation of work

v Implementation of ratified ILOrsquos Conventions and recommendations

vi Suitable means for reducing unemployment

vii Creating employment agencies and formation of employment

programmes

3333 Third policy (1969)

Third policy was announced in 1969This policy resulted in the introduction of

legislation guaranteeing freedom of association and the right to collective bargaining

in accordance with ILO Conventions 87 and 98 ratified by Pakistan A system of

78

equitable distribution of gains was put in place in the form of enactment of laws

relating to workers welfare and minimum wage of workers Salient features of this

policy are listed below

i- Measures to encourage the growth of trade unions

ii- Introduction of concept of collective bargaining agent

iii- Strengthening the scope of collective bargaining agent by giving rights

of strikes and lockouts to workers and employers respectively

iv- Extension of the principles collective bargaining of public sector

workers

v- Fixation of minimum wages of workers

vi- Institutional arrangements for minimum wages board

vii- Establishment of workers welfare fund for providing residential

accommodation etc to workers and

viii- Mechanism for settlement of industrial disputes

3334 Fourth policy (1972)

It was announced in 1972 As a result of this policy reforms in the system of

labor legislation were made which envisaged workers participation in the

management extension in the scope of labor laws enactment of laws relating to

employees old-age benefits workers children education introduction of statutory

bonus and group insurance schemes establishment of quasi-judicial body namely

National Industrial Relations Commission and the procedure for redress of workers

individual grievances

The guiding principles of this policy were

i- Emphasis on workersrsquo participation in management of industry

79

ii- Workers participation in the management committees work councils

and joint management boards

iii- Strengthening of work council

iv- Increase of workers share in companies profit from 25 to 5

v- Ensuring job security

vi- Bonus payment as statutory obligation of employer

vii- Speedy redressal of individual grievances through shop stewards

3335 Fifth policy (2002)

The draft of this policy was announced in 1999 but policy was approved in

2002 The principles objectives and action programme of the policy concentrate on

the creation of relationship of trust and cooperation between employer and employee

under the strategy of least intervention by the state A visionary approach adopted in

the Labor policy is a focus on dignity of labor fair balance of bargaining power and

productivity-based work culture with fair and equitable distribution of gains and

proceeds of the industry amongst employees entrepreneurs and the society at large

Principles Objectives and Initiatives of policy are

1 Promotion of Healthy Trade Unionism

Healthy trade unionism based on freedom of association and an effective

collective bargaining system is a pre-requisite for industrial peace productivity and

socio-economic uplift of labor An environment for growth of healthy and responsible

trade unionism will be created by encouraging responsible and representative trade

unions

2 The system of bilateral and tripartite social dialogue shall be strengthened and

streamlined to promote industrial peace and harmonious labor-management relations

Support to bilateral and tripartite mechanisms for policy formulation self-regulation

80

and peaceful resolution of disputes Bilateralism is the core element of the new labor

policy

3 Regulatory authority of government to be exercised only when bilateral

mechanisms fail to resolve disputes

4 Consolidation and simplification of labor laws Existing voluminous labor

legislation is overlapping in its coverage in several areas and anomalous in definitions

and scope The variety and complexity of labor laws has contributed adversely to

industrial relations system Need for rationalizationconsolidation of the existing laws

was acknowledged in this policy Therefore it was proposed to simplify and

consolidate these laws into following six basic laws relating to

1 - Industrial Relations

2 - Conditions of Employment

3 ndash Payment of Wages

4 - Human Resource Development

5 - Occupational Safety and Health

6 - Labor Welfare and Social Protection

5 Structural legislative changes and restructuring simplification and

minimization of Labor Judicial System to provide speedy justice in labor

sector

6 Promotion of employeesrsquo social security and social insurance programs and

improvement of labor welfare institutions namely Workers Welfare Fund

Employees Old Age Benefit Institutions and Provincial Employees Social

Security Institutions

Institutions responsible for social protection social insurance and labor welfare

need to be made fully autonomous and effective by restructuring their respective

81

management boards to ensure adequate labor and employer representation and to

strengthen their tripartite character Policy-making coordination and monitoring of the

functioning of these institutions will be entrusted to these tripartite boards exclusively

7 Progressive extension of labor laws and welfare measures to informal and

unorganized sectors

8 Special emphasis on workersrsquo children education

9 Combating child and bonded labor

10 Elimination of gender discrimination to reinforce gender equality

11 High priority given to occupational safety and health Policy provides for

enactment of law covering all workplaces and establishment of a National

Tripartite Occupational Safety and Health Council to meet the objective of

providing adequate safety and ensuring compensation to workers

12 In this policy importance of research in labor related disciplines and labor

administration necessity of training for improvement of the system and up-

gradation of the personnel have been acknowledged Policy provides for re-

organizing the existing research and training institutes and measures to

promote research and training activities on most modern lines to meet the

present day requirements

3336 Labor Protection Policy 2005

This provides protection to workers in five areas

1 Basic Rights

2 Working Conditions

3 The Working Environment

4 Social Security

82

5 The Living Environment

3337 Labor Inspection Policy 2006

Above policies and laws although important in providing guidelines and

legally enforceable standards mean relatively little unless arrangements are in place to

ensure the highest possible degree of compliance with legal provisions

Therefore government of Pakistan framed out Labor Inspection Policy 2006

after a consultation between government officials employersrsquo and workersrsquo

representatives throughout the country It is also in compliance with ILOrsquos convention

81 ratified in 1953 by government of Pakistan

This policy provides a new direction for the nationrsquos labor inspection systems

to enable them to respond to new approaches on a wide range of labor protection

issues It is integrated labor inspection policy having a modern view of labor

inspection placing the emphasis on prevention protection and improvement with

scope in following three areas

1 The terms under which workers are employed including wages hours of work

allowances leave and other benefits established by law or agreement

including protection against unfair dismissal and protection against

victimization

2 The conditions under which work takes place with regard to the safety of

workers and the action required to identify eliminate minimize and control

safety hazards concerning machinery and equipment work processes and

substances including chemicals

3 The general environment in which work takes place with regard to heat and

ventilation dust noise illumination and related factors likely to contribute to

illness or disease arising from the workplace

In this policy institutional arrangements are proposed for its implementation

Accordingly the Ministry of Labor Manpower and Overseas Pakistanis will establish

83

a National Labor Inspectorate as the central inspection authority to serve as the focal

point for the nationrsquos inspection activities However government supports the system

of self-inspection and self-reporting which means self-responsibility with managers

and workers assuming responsibility for compliance with standards concerning safety

and health and working conditions in the workplace Under this approach managers

and workers take the necessary steps to address and resolve their problems and

disagreements over labor protection issues Where the enterprise has a trade union

self-responsibility takes place through collective bargaining where managers and

workers come together and talk to resolve their differences with the outcome of their

discussions leading to a negotiated and legally binding agreement

These laws and policies pave way of granting rights and benefits to workers

but these are got implemented by the efforts of labor unions In some cases they fix a

minimum level of benefit and unions exert efforts to secure more than this For

example a level of minimum wage is fixed by government but workers receive more

than this Government fixed maximum weekly hours 48 but unions got them reduced

and 48 hours are only in one organization and in all other organizations are less than

this

CHAPTER 4 RESEARCH METHODOLOGY

41 THEORETICAL FRAME WORK

This research study is aimed at investigating the role of labor unions in HRD

by exerting efforts in Pakistanrsquos organizations for exacting benefits for workers from

employer or management motivating and pursuing workers to perform efficiently for

interest of organization If workers are not benefited properly they would be under-

developed being physically weak unsatisfied and de-motivated so will be inefficient

human resource for their organization With inefficient human resource no

organization can gain progress The efforts of unions in this research are restricted

with in the organizations only

If unions are securing benefits for workers then workers should be satisfied

with them and if unions are also serving the ends of employers then employers should

also be satisfied with their role so unions will be successful in their role playing

Success of unions in playing the role for development of human resource of

organizations will be estimated by measuring satisfaction of workers on unionsrsquo

efforts for securing benefits for them and also satisfaction of employers on unions for

motivating workers for better performance ie productivity or efficiency increase and

making harmony at workplace

411 Research Model and Variable Formation

In Industrial Relations when unions are exerting efforts for securing interests

of their workers and also motivate workers to do job dedicatedly for employers benefit

then both workers and employer are satisfied with union then unions are successful It

means unionsrsquo success (Su) is function of satisfaction of workers (Sw) and satisfaction

of employer (Se) This is expressed mathematically in the form of equation

85

Equation -1

[Su = f (Sw Se)]

Bernard (1998) is of the view that an areas joblessness helps to determine the

ability of workers and unions to get wage rises and it is difficult to secure gains when

unemployment threatens the livelihood of workers Holley Jr et al (2001) expressed

that the ability to achieve economic gains in the form of higher wages and improved

benefits is one of the important criterion workers use to gauge the effectiveness of

unions

Therefore in determination of the facts about role of unions or success one

variable used in this research is satisfaction of workers (Sw) on the efforts of unions in

securing benefits for them

For determining satisfaction of workers (Sw) on efforts of unions in securing

benefits for them 15 variable giving direct benefits to workers have been made base

These fifteen variables are showing unionsrsquo efforts for securing workers benefit

Satisfaction of workers is a moderating variable Because satisfaction of workers is

independent variables for purpose of determining unionsrsquo success (Su) as unionsrsquo

success depends on it but it further dependent on 15 variables for its own

determination

The satisfaction of the workers on the performance of unions in this research is

estimated by taking lsquocombine mean of 15 independent variables as shown in the

following equation (ie equation 2) It is a lsquocombine meanrsquo because values of these

fifteen variable have also been calculated as arithmetic mean of the data collected for

variables

86

Equation 2

SW = (Wris + Fbft + Jsec + Td + Linc + Wcon + Ot +

Hfac + Ced + We + Wdf + Prb+ Rfac + Top + Ir) 15

Where Sw is Satisfaction of Workers

Wris is Wag-Rise

Fbft is Fringe Benefits (bonus Allowances)

Jsec is Job Security

Td is Time Reduction

Hfac is Health Facilities

Ced is Children Education

Ot is Over Time

Wcon is Working Conditions

Linc is Leaves Increase

Prb is Post retirement Benefits Pension

Rfac is Recreation Facilities

Top is Training opportunities

Wdf is Wage Difference Reduction

Ir is Informing Workers about their Rights

We is Workersrsquo Education

15 is number of variables in this equation

In unionsrsquo HRD Model equation satisfaction of employers is also essential

and according to lsquoexisting problemrsquo of this research unions have been alleged and

there are misconceptions about them so satisfaction of employers is also to be

determined

87

For determining satisfaction of employers on efforts of unions in protecting

their interest motivating workers for increase of productivity or efficiency of workers

and workplace peace and harmony have been made base These are two variables

measuring unionsrsquo efforts for employersrsquo direct benefit Satisfaction of employers (Se)

is also moderating variable Because it is independent variables for purpose of

determining unionsrsquo success (Su) as unionsrsquo success depends on it but it further

dependent on 2 variables for its own calculation This is expressed in equation 3

Equation 3

Se = (Pin + Wph)2

Where Se is Employersrsquo Satisfaction

Pin is Workersrsquo Productivity Efficiency improvement

Wph is Work Place Harmony

2 is number of Independent variables in the equation

[Sources of variables Bernard (1998) Wong (2000) Holley Jr et al (2001) Aidt amp

Tzannatos 2001) Mishel and Walters (2003) George (2004)]

The conceptual frame work is illustrated in Figure 1

About these variables extensive literature references have been cited in chapter

two Concerned sections of every variable are given below

88

Variables Concerned Sections in Literature Review Page

Wris 231 Wag-Rise 21

Fbft 233 Fringe Benefits 25

Jsec 234 Job Security and Employment 26

Td 235 Time Reduction (Duty Hours) 28

Hfac 239 Health Care and Social Security 31

Ced 2314 Children Education 39

Ot 236 Payment of Over Time 29

Wcon 238 Working Conditions 30

Linc 237 Paid Leaves 29

Prb 2310 Post retirement Benefits (Pension) 33

Rfac 2313 Recreation and Social Services 37

Top 2311 Training Opportunities 34

Wdf 232 Reduction in Wage Inequality 24

Ir 2315 Workers Awareness 39

We 2312 Workersrsquo Education 36

Pin 241 Productivity Efficiency amp Profitability 39

Wph 242 Work Place Harmony amp Cooperative Role 46

89

Figure 1 Showing sequence of variables effect

Information of rights

Worker Education

Training Opportunities

Recreation Facilities

Post retirement Benefit

Children Education

Health Facilities

Working Conditions

Over Time

Wage Rise

Fringe Benefits

Job Security

Leaves Increase

Time Decrease

Productivity Increase

Workplace Harmony

Employerrsquos Satisfaction

Workerrsquos Satisfaction

Unionrsquos Success

Wage Differences

90

412 Research Hypotheses

The null hypothesis depends on 17 variable hypotheses (H1 to H17) to be

proved true so before testing null hypothesis it is essential to test these variable

hypotheses

Hypothesis 1- Unions did not exert efforts for wage rise of workers

Hypothesis 2- Unions did not exert efforts for fringe benefits like bonus and

allowances of workers

Hypothesis 3- Unions did not exert efforts for Job Security of workers

Hypothesis 4- Unions did not exert efforts for Time decrease or offer

resistance against time increase of workers

Hypothesis 5- Unions did not exert efforts for exacting health facilities

Hypothesis 6- Unions did not exert efforts for workers education facilities for

children of workers

Hypothesis 7- Unions did not exert efforts for Overtime payment for over

working

Hypothesis 8- Unions did not exert efforts for better working conditions

Hypothesis 9- Unions did not exert efforts for Leaves increase or offer

resistance against leaves decrease

Hypothesis 10- Unions did not exert efforts for post retirement benefits like

pension

Hypothesis 11- Unions did not exert efforts for arranging recreation facilities

Hypothesis 12- Unions did not exert efforts for arranging training opportunities

Hypothesis 13- Unions did not exert efforts for decreasing wage inequalities

91

Hypothesis 14- Unions did not exert efforts for informing workers about their

rights

Hypothesis 15- Unions did not exert efforts for workersrsquo education

Hypothesis 16- Unions exerted no efforts for motivating workers to increase

productivity

Hypothesis 17- Unions exerted no efforts for workplace harmony

On the basis of above Variablesrsquo Hypotheses the null hypothesis has been

developed If the above statements are proved true then null hypothesis will be proved

true otherwise alternate hypothesis will be accepted

Hypotheses Statement

Null Hypothesis H0 Unions are not beneficial bodies in industrial relations

for HRD

Alternate Hypothesis HA Unions are beneficial bodies in industrial relations for

HRD

42 POPULATION AND SAMPLING

Labor unions of public and private sector organizations their members office

bearers of the unions employers or management or their representatives and union

non-member temporary employees of Pakistanrsquos organizations are population for this

study

The selection of sample was completed in two stages In first stage

Organizations to be studied were sampled and in second stage individuals to be

interviewed (respondents) were sampled

421 Stage-lsquoIrsquo Sampling of Organizations

Due to limitations of access to all the unions only the organizations of

Islamabad and Rawalpindi (twin cities) being capital territory were targeted for

92

sampling Because the Head Offices or Head Quarters of almost all national level

countrywide organizations are situated in the Islamabad Therefore samples of big

public semi public and private organizations having their head offices in Islamabad

the federal capital of the country and some private institutions have been picked

These organizations have different activities such as manufacturing exploring oil

refining printing and publishing telecommunication telecasting town planning and

rendering municipal services power supply gas supply and banking (see appendix D-

1)

422 Stage-lsquoIIrsquo Sampling of Respondents

From sampled organizations the office bearers of CBA unions as unionsrsquo

representative Human Resource officials as management or employersrsquo

representative permanent workers and contract temporary workers were sampled

4221 Sampling of union office bearers

For union views about unionrsquos role respective President or General Secretary

were interviewed from each CBA union General Secretary or President were sampled

because of being most influential and aware about unionrsquos working and performance

their fully engagement in negotiation with management comparatively more dealing

with workers and well awareness with unionsrsquo matters and problems (appendix A-11)

4222 Sampling of permanent (Unionized) workers

For the view point of workers who are the actual partners of the activity and on

whose behalf and for whose benefit unions are formed thirty to seventy workers were

randomly picked from each organization in their head offices different sub offices or

branches or field offices of the organization and personally interviewed by the

researcher on the designed questionnaires (appendix A-1 to A-10)

93

4223 Sampling of management

For management or employers views point about role of labor unions

respective human resource officials having official interaction and dealing with unions

were interviewed from each organization (appendix A-11)

4224 Sampling of temporary (Non-unionized) workers

Ten temporary workers who were not members of union were also randomly

picked and interviewed from organizations except PCP where no temporary worker is

employed

Sampling details of permanent and temporary workers are in appendix D-2

43 DATA COLLECTION INSTRUMENTS

Questionnaires were used as research instruments for data collection

431 Questionnaires and their Structure

Four questionnaires were framed (see appendices G1 to G-4) First for Office

Bearers of the unions (Questionnaires-1) second for Permanent Workers of

organizations (Questionnaires-2) third for Employers (Questionnaires-3) and fourth

for Temporary Workers not covered by unions (Questionnaires-4)

Questionnaire 1 2 and 3 comprise all 20 questions designed in the alignment

with research questions variables Questionnaire 4 comprises only 10 questions

In questionnaires 1 2 and 3 first 17 questions are common In questionnaire-1

from office bearers of union first fifteen questions are about their efforts for direct

benefits of workers such as 1- Increase of workers Wages 2- for any Fringe Benefit of

workers 3- for Job Security 4- for Duty hoursTimings 5- for increase of workers

Leaves 6- for payment of Overtime to workers 7- for improving Working Conditions

8- for Health care of workers and their families 9- for facilities provided for

Education of workers Children 10- for Post Retirement Benefits of Workers such as

pensions 11- for Recreational Facilities for workers 12- for Training facilities for

94

workers 13 is about Unionsrsquo efforts for decreasing workers officers Wagesalary

difference 14- is for unionrsquos efforts for informing workers about their Rights as

worker and 15- is about unions efforts for arrangements for workers education These

are questions giving direct benefit to workers

First these questions were asked from unionrsquos office bearers that what they did

for benefit of workers It is unionsrsquo claim of efforts exerted and the same questions

were asked in second questionnaire from workers whether unionsrsquo claim is right or

false and workers answer is to certify unions claim of efforts and satisfaction level of

workers will be a measure of unionsrsquo efforts In the third questionnaire the same

questions were asked from management whether unionsrsquo officials have really resorted

to management for gaining benefits for workers from management and answer of

management will be an evidence supporting or denying unionsrsquo claim

Two questions 16 and 17 are about unionsrsquo efforts for the benefits of

organization or employer as 16- efforts to increase workers Productivity Efficiency

and 17- is about unionsrsquo efforts to increase workplace Harmony

First these questions were asked from Unionrsquos office bearers that what they did

for benefit of employer or management actually it is their claim and the same

questions were asked in second questionnaire from workers whether unions claim is

right or falsersquo about exertion of unionsrsquo efforts and workers answer is an evidence for

confirming or falsifying unionsrsquo claim of efforts In the third questionnaire the same

questions were asked from management whether union motivates workers to benefit

employer (by improvement of productivity or efficiency of workers and work place

harmony) and what is satisfaction level of management on unionsrsquo efforts Answers of

management will certify unionsrsquo claim and its satisfaction level will be a measurement

of unionsrsquo efforts

In first questionnaire other three questions are general as 18- is about existence

of Work Council in the organization 19- is about unionsrsquo signing of charter of demand

and 20- is about provision of any training to office bearers as unionist by any agency to

conduct unionrsquos matters

95

In second questionnaire question 18 is about essentiality of unions 19 is about

inter union relations if there are two or more unions in the organization and question 20

is about comparison of unionsrsquo strength or weakness over the passage of time

In questionnaire lsquo3rsquo first 17 questions are common to questionnaire 1 and 2

While questions 18- is about existence of Work Council in the organization 19- is

about union signing charter of demand 20-is about Union acceptance of any wage cut

in difficult financial days of the organization for its benefit

Questionnaire lsquo1rsquo provides information about unionsrsquo claim of efforts exerted

for the benefits of workers as measured by variables eg wage rise fringe benefits job

security time reduction leave with pay payment of over time working conditions

health facilities children education facilities pension post retirement benefits

recreation facilities workersrsquo training decrease of wage salary difference of workers

and officers informing them about their legal rights and workers educational

opportunities It also provides information about efforts of unions for benefit of

organization or employer measured by the variables like their contribution for

improvement of productivity and efficiency and work place harmony By responding

these questions unionrsquos representative claim their efforts and struggle for securing

interest of employees and employer which is proved or disproved by the responses of

workers in questionnaire 2 and by management in questionnaire 3

Questionnaire 2 provides information about the responses of workers about the

claims of union office bearers about their effort for betterment of workers as measured

by variables eg wage rise fringe benefits job security time reduction leave with

pay payment of over time working conditions health facilities children education

facilities pension post retirement benefits recreation facilities workersrsquo training

decrease of wage salary difference of workers and officers informing them about

their legal rights and workers educational opportunities In this questionnaire workers

confirm or reject the unionsrsquo claims of exerting efforts for workers betterment and

stand witness for unions claim of exerting efforts for benefit of employer like

motivating for improvement of productivity and efficiency work place harmony In

this questionnaire permanent workers have been interviewed

96

Questionnaire 3 provides responses of management about the same 17

variables showing contribution of unions for benefit of employer by improvement of

productivity and efficiency and work place harmony (question 16 and 17) besides

showing management responses on questions about the benefit of workers In this

questionnaire employer or managementrsquos representative confirms or rejects the

unionrsquos claim of exerting efforts for the benefits of organization (questions 16 and 17)

and stand witness for unions claim of struggle for workers benefit (questions 1-15)

because when ever they seek any benefit for workers they have to demand it from

management Here heads of HR departments or members of management and senior

officials who have to deal with unions or unionized employees have been

interviewed because unions negotiate to them for securing benefits for workers

In fourth questionnaire temporary workers (non members or non covered

employees) provide the data about the variable of workers interest eg wage rise job

security time reduction improvement of working condition children education

facilities health facilities leave with pay bonus payment overtime payment effects

of unions efforts on temporary workers and essentiality of unions etc have been found

to know the difference between facilities of unionized and non unionized employees

Questions in these questionnaires regarding variables were designed to get

response in two forms I- Yes and No and then the satisfaction level of the respondent

on the provision of respective benefit Unions representatives in Questionnaire-I reply

all the 20 questions in Yes or No

Workers in Questionnaire-2 reply all the questions regarding 15 variables

(questions 1 to 15) measuring unions efforts for securing their benefits in Yes or No

and also by expressing their satisfaction level on five points scale ranging from very

unsatisfied to very satisfied but reply as witness in Yes or No by endorsing or

rejecting for questions (16 and 17) regarding management benefits as witness

Management representatives in Questionnaire-3 reply all the questions

regarding 2 variables measuring their benefits in Yes or No and also express their

satisfaction level on five points scale ranging from very unsatisfied to very satisfied

as main beneficiary (question 16 and 17) but for other questions which are for benefit

97

of workers (question 1 to 15) management representatives reply in Yes or No

endorsing or rejecting as witness the claims of union

All the data were collected from sampled respondents by researcher by paying

visits to every respondent

44 PREPARATION OF SATISFACTION LEVEL SCALE

In the present research researcher proposed 17 variables 15 measuring unionsrsquo

efforts for workers and 2 measuring unionsrsquo efforts for employersrsquo benefits On these

efforts the satisfaction of relevant respondent is measured on 5 points Satisfaction

Level Scale (SLS) on Likert Sacle as suggested by Emory (1980) and Cooper amp

Schindler (nd) In this scale weight 5 is allotted to Very Satisfied 4 is allotted to

Satisfied 3 is allotted to Indifferent 2 is allotted to Un-Satisfied and 1 is allotted to

Very Un-Satisfied

45 PILOT STUDY

To test the completeness of questionnaires with respect to information

collection and validity of the instruments a pilot study was conducted in first week of

December 2006 It was found that due to Name workers were reluctant to respond

Besides this the question number 6 regarding the overtime was not included and

questions 18 19 and 20 about unions essentiality inter union relations (between CBA

and non CBA unions) and comparison of unions strength or weakness as compared to

past were also not present So later on name was deleted and question 6 about

overtime and questions 18 19 and 20 were added

46 CODES AND ABBREVIATIONS

In tables due to space limitation formula terms column captions and row stubs

have been abbreviated For abbreviations see appendix E-1) Variable have also been

coded for equations preparation and for writing in the tables in appendix E-2

98

47 STATISTICAL METHODS APPLIED

Collected raw data were converted in to meaningful data by tabulation for

applying statistical techniques of Percentage Arithmetic Mean ( ) Chi square (χ2) and

Comparisons to draw conclusions Then these statistical techniques were applied Both

Statistical Techniques ie Descriptive Statistics in the form of Percentages and

Arithmetic Mean and Inferential Statistical Techniques in the form of Chi square χ2

were used Simple statistical methods have been used so that those readers who have no

statistical background specially workers unionsrsquo office bearers and employers may also

understand and take benefit of this study Data collected on YesNo responses were

analyzed by using percentages and data collected on five points satisfaction level Likert

Scale were analyzed by using Weighted Arithmetic Mean as suggested by Emory

(1980) and Chi square test

The fourth method of comparison by comparing data of permanent workers

with temporary workers was also used to see the unionsrsquo role for seeking benefits for

workers

The formulae of Percentage Arithmetic Mean and Chi square are

471 Percentage

Percentage of Yes responses = Number of Yes responses 100 Number of

total responses

And

Percentage of No responses = Number of No Responses 100 Number of

total responses

472 Arithmetic Mean

Simple Arithmetic Mean is calculated by formula

99

Arithmetic Mean of frequency data is ( ) = ΣfXi n when mean is of one

organization (organizational means) or is of one variable (variable mean) of all

the organizations

Here lsquoΣ fXirsquo is total of responses multiplied by their respective value (weight)

from 1 to 5 (1 for VUS 2 for US 3 for IND 4 for S and 5 for VS) as

suggested by Emory (1980)

For estimation of mediating variables Combine mean of the weighted

arithmetic means of all the variables is to be calculated by application of

formula

Combine Mean = Σ i N

Where Σ i is sum of all the arithmetic means of all the variables and N is

number of variables which is 15 for combine mean calculation of workersrsquo variables

and 2 for combine mean calculation of employer variables

By the value of combine mean of variable-wise means of all the variables the

success of unions will be estimated If the value of the combined mean lies in the

satisfactory region being greater than lsquo3rsquo the value of indifferent weight then unions

are successful and beneficial bodies and are playing role in HRD of the organizations

If it is equivalent to indifferent then they are tolerable and if it lies in the

unsatisfactory region being less than lsquo3rsquo being below indifferent level then unions are

failed organizations and workers or employers are not satisfied with them and we can

conclude that unions are non-beneficial bodies in the organizations and are playing no

role in HRD of the organizations

100

473 Chi Square (χ2)

Formula for Chi square is χ2 = Σ (fo-fe)2fe or

χ2 = Σ (fo-fe)2fe

Σ = (sum of values)

fo = (observed value) calculated by adding all the vales in a column

fe = (expected value) calculated by dividing grand total by number of

columns

df (degree of freedom) = (c-1) (r-1)

df stands for degree of freedom

fo stands for observed frequency

fe stands for expected frequency

c stands for column

r stands for row

In this research Chi square as suggested by Emory (1980) and Cooper amp

Schindler (nd) has been applied on the totals of the columns of variable pertaining to

workers only and not on variables for employers because of limited number of

responses

The level of significance selected for making inference about population was

005

If calculated value of Chi square is more than table value at 005 significance

level at respective degree of freedom then our statement of assumption for respective

variable will be rejected and alternative view will be established

101

474 Comparison

Comparison has been made of admissible facilities enjoyed by permanent

(unionized) workers with temporary (non-unionized) workers in two lsquocomparison

tablesrsquo These comparable facilities were Wage Rise Fringe Benefits (bonus and

allowances) Job Security Weekly Working Hours Working Conditions Children

Education Facility Health Facilities Miscellaneous Allowances and Yearly Leaves

48 CALCULATIONS BY APPLYING STATISTICAL METHODS

For analyzing the data methods of percentage calculation arithmetic mean

calculation and chi square have been applied

481 Percentage Calculation of Yes No Responses

Questions 18 19 and 20 in the questionnaire 2 were answered in Yes No For

estimation of views percentage method has been applied For question 18 about the

essentiality of unions for the organizations if total of percentages of lsquoYesrsquo answers is

more than 50 then it means majority of workers is acknowledging the need of unions

for the cause of workers If the percentage of Yes answers for question 19 about the

inter unions relations is more than 50 percent it means that unionsrsquo mutual

relationships are good For Question 20 about the unionsrsquo strength as compared to

unions in the past if the percentage of Yes answers is more than 50 percent it means

that unionsrsquo of today are weaker than unions in the past

482 Means Calculations

Arithmetic Mean has been calculated of five point satisfaction level of

respondents as described by Emory (1980) and Cooper amp Schindler (nd) by giving

Value 5 to Very Satisfied (VS) 4 to Satisfied (S) 3 to Indifferent (IND) 2 to Un-

Satisfied (US) and 1 to Very Un-Satisfied (VUS) and accordingly multiplying their

frequencies with their respective value Then adding them and dividing them by

respective total frequency ldquonrdquo In Organization wise means n is obtained by

multiplying number of respondents of that organization with number of variables as in

case of ARL for workers satisfaction it will be 35 15= 525 (here 35 is number of

102

respondents and 15 is number of variables) For variable wise mean for workerrsquo

variable n will be 525 which is total number of respondents for any variable being

sample size When mean is calculated for organization it is lsquoorganizational meanrsquo and

when calculated for variable (in variable wise calculation) it is lsquovariable meanrsquo Then

all the variable means are added to each other and divided by number of variables

(total number of variables for workers is 15) to calculate lsquoCombined Meanrsquo of all the

variables of all the organizations

Organizational mean of variables for management variables have been

calculated organization wise by adding weights of responses of that organization and

dividing the sum by 2 which is number of variables benefiting employer for any

organization

Similarly lsquovariable meanrsquo of variables for unionsrsquo efforts for employers were

calculated by adding weighted values of responses of all the respondents for every

variable and then dividing it by 10 then these all variable means were added to each

other and divided by 2 to calculate lsquoCombined Meanrsquo which is direct measure of

employersrsquo satisfaction and consequently of unionsrsquo success

If Combined Mean is below Indifferent level by bearing value less than 3 than

it means workers or employers of organizations are not satisfied with unions efforts

and unions are not successful so unions are not beneficial bodies for organizations If

Combined Mean is equivalent to lsquoIndifferentrsquo by bearing value equal to 3 then it

means unions workers or employers of organizations are neither happy nor unhappy or

number of satisfied and unsatisfied workers is equal So unions if exist have no benefit

or harm or if not existing even then have no benefit or harm but if Combined Mean is

more than ldquoIndifferentrdquo level then majority of workers or employers of organizations

is satisfied with their efforts so their existence is required and we can conclude that

unions are beneficial bodies for organizations

These means have been calculated for responses of workers and for responses

of employermanagement organization-wise of all variables as well as variable-wise

of all the organizations

103

At every stage may be Organization Means Variable Means or Combined

Mean if its value is below 3 (which is weight allotted to ldquoIndifferentrdquo response level)

then it shows clearly that union is not efficient and beneficial It will prove the Null

Hypothesis that unions are not beneficial bodies for organizations and it is to be

accepted If the Mean is above 3 then it shows that the union is efficient and its

presence is beneficial so null hypothesis is to be rejected and Alternate hypothesis is to

be accepted

483 Chi Square Applications

To see the significance and to test assumption statements for every variable

Chi square technique has also been applied for variables pertaining to workers at 005

level of significance as has been applied for testing of statements by Ahmed (2004)

Aleem (2004) Where calculated value of Chi square is more than table value then the

assumption statement is to be rejected and accepted the alternate view point for that

variable It is another parameter to check the efficiency and efforts of unions for

seeking benefits for their workers Chi Square has been applied only on responses of

workers and not on responses of management because of very small number of

respondents

484 Comparison Applications

Comparison has also been made of facilities availed by unionized workers with

non-unionized temporary workers to see their efforts whether facilities had been won

by unions efforts or it was merely blessing of employer or government If there was no

difference than unions were also not beneficial bodies but if unionized workers were

enjoying more facilities and better terms of employment than unions are beneficial

bodies in the organizations

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS

According to theoretical frame work fifteen variables have been targeted for

measuring the efforts of union for benefits of workers These are Wages-rise (Wris)

Job-security(Jsec) Time-decrease (Td) Working-conditions (Wcon) Children-

104

education (Ced) Health-facilities (Hfac) Financial-benefits(Fbft) Over time payment

(Ot) Leaves Increase (Linc) Post Retirement and pension benefits (Prb) Recreation

facilities (Rfac) Training opportunities (Top) Decrease of wage salary difference

gape of workers and officers (Wdf) Informing workers about rights (Ir) and Workers

education These variables have been measured at five scale satisfaction level ie Fully

Satisfied valued as 5 Satisfied valued as 4 Indifferent valued as 3 Unsatisfied valued

as 2 and Fully Unsatisfied valued as 1 The Frequency of variables has been multiplied

with concerned value and then valued frequencies added and their sum has been

divided with sample size of the concerned organization for calculation of organization

mean and with whole sample for sampled mean

For every variable as value of Indifferent satisfaction level is 3 so if sample

mean is 3 then it means union is neither beneficial nor non-beneficial but tolerable and

there is no harm of union if not giving any benefit and no loss if not existing If mean

is less than three than union is not beneficial body and if mean is more than 3 than

union is a beneficial body More it is bigger than 3 the more beneficial is the union for

workers or more union has put efforts for acquiring workers benefit

Combine mean of all the variables means is obtained by putting their values in

equation 2 Details of codes used in the equation is in appendix E-2

SW = (Wrise + Fbft +Jsec + Td + Wcon + Ced + Hfac +

+ Linc+ Ot + Prb + Rfac + Top + Wdf + Ir + We+)15

This combined mean is measure of satisfaction level of workers and a

component of unionsrsquo success equation lsquoSu = f Sw Sersquo If combined mean is above

3 (indifferent level) unions are successful with reference to putting efforts for workers

benefits and value of combined mean above 3 will be a scale of level of success If

combined mean is 3 then unions are neither successful nor harmful If mean is below 3

then unions are failed and there presence in the organization is not benefiting so there

existence should be avoided

105

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits

Two variables have been targeted for measuring the efforts of unions for

employersrsquo benefits

These are efforts to increase workers productivity or efficiency (productivity in

manufacturing efficiency in non manufacturing and services) (Pin) and efforts for

work place peace and harmony (Wph) The Frequency of variablesrsquo is multiplied with

concerned weight and then weighted frequencies are added and their sum is divided

with sample size for calculation of sampled mean

As weight of indifferent satisfaction level is 3 so if sample mean is 3 then it

means union is neither beneficial nor non-beneficial but tolerable and there is no harm

of union if not benefited If mean is less than three than union in not beneficial body

and if mean is more than 3 than union is a beneficial body More it is bigger than 3 the

more beneficial is the union for workers Weighted average of all the variables has

been obtained and then all these means have been put in the equation

Se = (Pin + Wph)2

Here 2 is number of variables This gives the combined mean of employersrsquo

variables Combined mean is measure of satisfaction of employer with the unions

If combined mean is three then union has neither benefit nor harm or equally

satisfying and un-satisfying if less than 3 then employer is unsatisfied union is not

beneficial body for the employer of the organization and if it is bigger than 300 then

the employer is satisfied so union is beneficial body for the employer of the

organization

CHAPTER 5

DATA ANALYSIS AND RESULTS

This chapter is dedicated to present and analyze collected data by applying

statistical operations

51 DATA PRESENTATION

Data obtained from respondents by asking questions 1 to 17 in questionnaire 1

2 and 3 are tabulated in appendices F-1 to F-10

In appendices F-1 to F-10 every table has 11 columns First column contains

coded name of variable Columns 2 and 3 show answers of workers about unionsrsquo

role column 2 contains number of respondents replying in Yes and column 3 contains

number of respondents replying in No Columns 4 to 8 express satisfaction level of

workers from very satisfied to very unsatisfied Column 9 represents unionsrsquo response

on the same question It is claim of union about the services they rendered and it is

answered in YesNo Column 10 contains the managementsrsquo answers on unionsrsquo

performance as witness for efforts exerted for benefit of workers and certifier for

variables for benefit of management itself Column 11 shows the numerical value of

managementrsquos answer of variables pertaining to employersrsquo interest protected by

unions Data for all other tables drawn for analysis have been taken from these tables

Replies of questions 18 19 and 20 of questionnaire 2 are presented in table in

appendix F-11 replies of question number 18 19 and 20 of questionnaire 1 are

presented in table in appendix F-12 and replies of question number 18 19 and 20 of

questionnaire 3 are presented in table in appendix F-13

511 Organization-Wise Description of Respondents

Data collected from respondents pertaining to questions numbers 1 to 17 of all

the organizations have been tabulated organization wise in the appendices F-1 to F-10

Their description is given below

107

5111 Description of respondents of ARL

For Attock Refinery Limited (ARL) for unionrsquos opinion general secretary of

the union in the presence of president for managementrsquos view point manager HR and

among workers 30 permanent workers and 10 temporary or contract workers were

interviewed in Head office and Refinery at Morgah Rawalpindi Because of

difficulties of gaining access to the workplace only 30 workers of different trades were

randomly contacted in the parking administrative offices and outside of refinery at

different times randomly Majority of workers were interviewed during breaks and

after end of duty (appendices A-1 and B-1) Ten temporary workers were interviewed

similar way

5112 Description of respondents of CDA

In Capital Development Authority (CDA) for unionrsquos opinion president of the

union for managementrsquos view point Deputy Director Labor Affairs and among

workers 70 permanent workers were interviewed in head office and at divisional and

directorates offices field complaint office and rest-house workers (appendices A-2

and B-2)

For temporary workersrsquo opinion ten temporary workers were interviewed in

different offices

5113 Description of respondents of IESCO

In Islamabad Electric Supply Company (IESCO) for unionrsquos opinion general

secretary of the union for managementrsquos views manager HR and among workers 70

permanent workers and 10 temporary or contract workers were interviewed in head

office in various circle offices (office of Executive Engineer) divisional offices (office

of Sub Divisional Officer) grid stations and customer services centers Islamabad and

Rawalpindi (appendices A- 3 and B-3)

108

5114 Description of respondents of KTM

In Kohinoor Textile Mills (KTM) for unionrsquos opinion general secretary of the

union for managementrsquos views manager HR and among workers 35 permanent

workers and 10 temporary or contract workers were interviewed in Head office and

workers residential colony at Rawalpindi Because of difficulties of gaining access to

the workplace only 35 workers of different trades were randomly contacted in the

colony and in surroundings of the factory (appendices A- 4 and B-4)

5115 Description of respondents of OGDCL

In Oil and Gas Development Company Limited (OGDCL) for unionrsquos opinion

General secretary of the union and for managementrsquos view point manager HR and

among workers randomly picked 50 permanent workers and 10 temporary or contract

workers were interviewed in head office Islamabad at store I-9 Staff College (OGTI)

Islamabad and in different oilfields (appendices A-5 and B-5)

5116 Description of respondents of PCP

In Printing Corporation of Pakistan (PCP) for unionrsquos opinion general

secretary of the union and for managementrsquos views point Director Administration and

from workers randomly picked 50 permanent workers were interviewed from head

office and printing press Islamabad There is no temporary worker in the organization

(appendices A-6 and B-6)

5117 Description of respondents of PTCL

In Pakistan Telecommunication company Limited (PTCL) for unionrsquos opinion

General Secretary of the union and for managementrsquos view point General Manager

Human Resource and among workers randomly picked 70 permanent workers and 10

temporary or contract workers were interviewed in head office G-8 Islamabad

divisional engineers offices telephone exchanges revenue offices customers services

centers in Islamabad and Rawalpindi and line men working in the field (appendices

A- 7 and B-7)

109

5118 Description of respondents of PTV

In Pakistan Television Corporation (PTV) for unionrsquos opinion general

secretary of the union and for managementrsquos view point controller HR and

administration and among workers randomly picked 50 permanent workers and 10

temporary or contract workers were interviewed in head quarter (administration office

head office) PTV Main telecasting Station F-5 Islamabad at PTV ONE and ETV at H-

9 Islamabad (appendices A- 8 and B-8)

5119 Description of respondents of SNGPL

In Sui Northern Gas Pipe Line Limited (SNGPL) for unionrsquos opinion General

Secretary of the union and for managementrsquos views manager HR and among workers

randomly picked 50 permanent workers and 10 temporary or contract workers were

interviewed in General Manager office I-9 Islamabad in different departments such as

construction department billing department connection department meter reading

department sales department recovery department administration department and

marketing department and in revenue offices of Saddar Rawalpindi and Satellite Town

Rawalpindi and workers in the fields (appendices A- 9 and B-9)

51110 Description of respondents of ZTBL

In Zarhi Tarraqqiatti Bank Limited (ZTBL) for unionrsquos opinion general

secretary of the union and for managementrsquos view point Senior Vice President

administration and HR and among workers randomly picked 50 permanent workers

and 10 temporary or contract workers were interviewed in head office Zero Point

Islamabad at zonal office G-7 Islamabad and in some branches (appendices A- 10 amp

B-10)

51111 Workers responses of the questions about essentiality inter unions relations and unions status as compared to past

To find out whether unions are essential in the organizations or not what are

inter union relationships of unions where if unions are more than one in the

organization and what happened with the strength of unions with the passage of time

110

workers of the organizations were asked questions 18 19 and 20 respectively

Responses of workers are presented in table in appendix F-11 Three organizations

ARL PCP and ZTBL have single union so in analysis of question 18 their respondents

will not be considered in sample

51112 Unionsrsquo office bearersrsquo responses of the questions about work council charter of demand and unionistsrsquo training

These responses are tabulated in table in appendix F-12 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

51113 Management responses about work council charter of demand and wage cut

These responses are tabulated in table in appendix F-13 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA

Here data tabulated in appendices F-1 to F-10 have been analyzed Tables have

been constructed for this purpose Tables 1 to 10 are meant for variables pertaining to

workers Where unions are claimer workers are certifier as actual party and

management is witness Every table comprise 7 columns first column contains

variables column 2 to 6 contain workersrsquo responses with satisfaction level valued

from 5 for very satisfied (VS) to 1 very un-satisfied (VUS) about any effort and

column 7 contains total number of respondents for any variable Total of all the

columns has been multiplied by its value to obtain valued total and valued totals of all

columns from 2 to 6 added (such as in table-1 total of column two ie 32 multiplied by

its value ie 5 so valued total came 160 and valued total of column three that is 944

valued total of column four that is 402 and valued total of column five that is 96 and

their grand valued total is 1602 ) and divided by number of all the responses (450

111

which is product of number of respondents ie 30 multiplied by number of variables

ie 15) to get organizationrsquos mean that is 356 It is measure of satisfaction of workers

on efforts of union of the organization for their benefits

Tables from 11 to 20 are meant for calculating arithmetic means of responses of

variables pertaining to employer and contain 3 columns Column one is for variable

name column 2 contains responses of employer and column 3 contains values of these

responses Values in the column 3 have been added and their total has been divided by

number of variables ie 2 to calculate mean of responses of employer It is really

measure of satisfaction of employer on efforts of union of one organization for

employerrsquos interest

521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES

Organization wise arithmetic means and percentages of all the organizations on

the basis of the variables pertaining to workers have been calculated below in tables 1

to table 10

112

Table-1 Responses of Workers of ARL Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 2 20 8 - - 30

Fbft 8 16 4 2 - 30

Jsec 8 18 4 - - 30

Td 16 14 - - 30

Linc 24 6 - - 30

Ot 20 10 - - 30

Wcon 4 22 4 - - 30

Hfac 20 6 4 30

Ced 2 14 10 4 30

Prb - 2 14 14 30

Rfac 2 10 8 10 30

Top 18 8 4 30

We 12 14 4 30

Wdf 6 8 12 4 30

Ir 16 12 2 30

Total = f 32 236 134 48 450

fXi 160 944 402 96 1602 Organizational Mean (ARL) = Σ fXi450= 1602450 = 356

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 356 which is more than 3 (Indifferent level) showing union of ARL is

exerting efforts for exacting benefits for workers

Union of ARL claimed for exertion of efforts for securing all benefits for workers and

management confirmed it (see column 9 and 10 of appendix F-1)

113

Table 2 Responses of Workers of CDA (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris 40 14 16 70

Fbft 62 6 2 70

Jsec 48 18 4 70

Td 36 32 2 - 70

Linc 35 33 2 70

Ot 30 32 8 70

Wcon 30 28 12 70

Hfac 40 14 16 70

Ced 13 48 9 70

Prb 14 50 6 0 70

Rfac 58 12 70

Top 10 20 40 70

We 28 34 8 70

Wdf 28 28 14 70

Ir 54 10 6 70

Total = f 14 504 381 151 1050

fXi 70 2016 1143 302 3531 Organizational Mean (CDA) = Σ fXi1050 =35311050 = 336

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 336 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts for exacting benefits for workers

Union of CDA claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for time decrease leaves increase

recreation facilities and workersrsquo education (see column 9 and 10 of appendix F-2)

114

Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris - 26 22 22 - 70

Fbft 2 12 56 - 70

Jsec 7 40 13 10 - 70

Td - 40 23 7 - 70

Linc - 40 25 5 - 70

Ot 36 20 14 - 70

Wcon 50 10 10 - 70

Hfac 26 24 20 - 70

Ced 9 44 17 - 70

Prb 4 46 20 - 70

Rfac 47 23 70

Top 22 34 14 - 70

We 36 24 10 70

Wdf - 2 37 31 - 70

Ir - 49 10 11 - 70

Total = f 7 382 391 270 1050

fXi 35 1528 1173 540 3276 Organizational Mean (IESCO) = Σ fXi1050 = 32761050 = 312

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 312 which is more than 3 (Indifferent level) showing union of IESCO is

exerting efforts for exacting benefits for workers

Union of IESCO claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for fringe benefits leaves increase

workersrsquo education and reduction of officers workers salary difference (see column 9

and 10 of appendix F-3)

115

Table 4 Responses of Workers of KTM (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris - 10 4 21 35

Fbft - 17 17 1 35

Jsec - 15 10 10 35

Td - 13 13 9 35

Linc - 10 16 9 35

Ot - 12 15 8 35

Wcon - 30 5 - 35

Hfac 6 25 4 - 35

Ced 4 20 11 - 35

Prb - 17 10 8 35

Rfac - 16 10 9 35

Top 22 13 35

We 12 17 6 35

Wdf 2 7 26 35

Ir 20 12 3 35

Total = f 10 219 173 123 525

fXi 50 876 519 246 1691 Organizational Mean (KTM) = Σ fXi525= 1691525 = 322

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 322 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts for exacting benefits for workers

Union of KTM claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for wage rise time decrease leave

increase overtime payment recreation facilities training opportunities and reduction

of officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

116

Table 5 Responses of Workers of OGDCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris - 35 15 - - 50

Fbft 2 34 10 4 - 50

Jsec - 45 5 - - 50

Td - 40 10 - - 50

Linc - 40 10 - - 50

Ot - 22 16 12 - 50

Wcon 4 33 10 3 - 50

Hfac 17 28 5 - - 50

Ced - 8 36 06 - 50

Prb - 27 13 10 - 50

Rfac 18 14 14 04 - 50

Top 4 19 20 7 - 50

We 21 19 10 - 50

Wdf 5 26 14 5 - 50

Ir - 34 12 4 - 50

Total = f 50 426 209 65 750

fXi 250 1704 627 130 2711

Organizational Mean (OGDC) = Σ fXi750 = 2711750 = 361

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 361 which is more than 3 (Indifferent level) showing that union of

OGDC is exerting efforts for exacting benefits for workers

Union of OGDC claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-5)

117

Table 6 Responses of workers of PCP (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 37 4 9 50

Fbft 33 8 9 50

Jsec 4 40 4 2 50

Td 40 4 6 50

Linc 38 7 5 50

Ot 37 9 4 50

Wcon 39 6 5 50

Hfac 40 5 5 50

Ced 11 16 23 50

Prb 5 30 15 50

Rfac 30 20 50

Top 24 26 50

We 30 20 50

Wdf 5 37 8 50

Ir 20 21 9 50

Total = f 4 375 225 146 750

fXi 20 1500 675 292 2487 Organizational Mean (PCP) = Σ fXi750 = 2487750 = 332

Weighted Arithmetic Mean of Satisfaction Level of the responses of workers

for all the variables is 332 which is more than 3 (Indifferent level) showing union of

PCP is exerting efforts for exacting benefits for workers

Union of PCP claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities

recreation facilities training opportunities workersrsquo education and reduction of

officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

118

Table 7 Responses of workers of PTCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 28 18 24 - 70

Fbft 14 16 40 70

Jsec 2 39 15 14 - 70

Td 40 20 10 - 70

Linc 36 24 10 - 70

OT 10 38 22 - 70

Wcon 36 24 10 - 70

Hfac 44 16 10 - 70

Ced 11 32 27 - 70

Prb 4 44 22 - 70

Rfac 40 30 - 70

Top 16 40 14 - 70

We 19 39 12 70

Wdf 32 38 - 70

Ir 18 34 18 70

Total = f 2 315 432 301 1050

fXi 10 1260 1296 602 3168 Organizational Mean (PTCL) = Σ fXi1050 = 31681050 = 302

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 302 which is very marginally bigger than 3 (Indifferent level) showing

that union of PTCL is exerting efforts for exacting benefits for workers but the

situation is hardly satisfactory and union is approximately at tolerance level Thus

PTCL union has much to do for workers

Union of PTCL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities post

retirement benefits recreation facilities (see column 9 and 10 of appendix F-7)

119

Table 8 Responses of workers of PTV (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 6 26 14 4 50

Fbft - 36 12 2 50

Jsec 7 39 3 1 50

Td 37 10 3 50

Linc 38 9 3 50

Ot 41 6 3 50

Wcon 39 11 50

Hfac 37 5 8 50

Ced 13 20 17 50

Prb 21 24 5 50

Rfac 10 34 6 50

Top 16 24 10 50

We 33 8 9 50

Wdf 23 14 13 50

Ir 30 10 10 50

Total = f 13 439 204 94 750

fXi 65 1756 612 188 2621 Organizational Mean (PTV) = Σ fXi750 = 2621 750=350

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 350 which is more than 3 (Indifferent level) showing that union of PTV

is exerting efforts for exacting benefits for workers

Union of PTV claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for recreation facilities (see column 9

and 10 of appendix F-8)

120

Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 7 30 10 3 50

Fbft 5 30 12 3 50

Jsec 5 34 11 50

Td 34 16 50

Linc 32 18 50

Ot 3 21 23 3 50

Wcon 3 40 4 3 50

Hfac 4 34 10 2 50

Ced 6 22 22 50

Prb 37 8 5 50

Rfac 16 30 2 2 50

Top 10 34 6 50

We 15 25 10 50

Wdf - 17 28 5 50

Ir 25 14 11 50

Total = f 43 395 237 75 750

fXi 215 1580 711 150 2656 Organizational Mean (SNGPL) = Σ fXi750 = 2656750 = 354

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 354 which is more than 3 (Indifferent level) showing that union of

SNGPL is exerting efforts for exacting benefits for workers

Union of SNGPL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for time decrease and leaves increase

(see column 9 and 10 of appendix F-9)

121

Table 10 Responses of workers of ZTBL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables

Wris - 32 14 4 - 50

Fbft 28 14 8 - 50

Jsec 26 20 4 - - 50

Td 28 16 6 - 50

Linc 28 14 8 50

Ot 16 12 22 - 50

Wcon 32 14 4 - - 50

Hfac 1 38 4 7 - 50

Ced 22 22 6 - 50

Prb 2 18 30 - 50

Rfac 28 22 - 50

Top 26 20 4 - 50

We 28 18 4 50

Wdf 2 20 22 6 - 50

Ir 4 34 7 5 - 50

Total = f 65 336 217 132 750

fXi 325 1344 651 264 2584 Organizational Mean (ZTBL) = Σ fXi750 = 2584750= 345

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 345 which is more than 3 (Indifferent level) showing that union of ZTBL

is exerting efforts for exacting benefits for workers

Union of ZTBL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-10)

122

522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES

Organization wise arithmetic means of all the organizations on the basis of the

two variables pertaining to management have been calculated below in tables 11 to

table 20

Table 11 Responses of Management of ARL

Management Responses

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (ZTBL) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing that union of

ARL is exerting efforts in exhorting workers to work for the interest of employer

Therefore union is successful

123

Table 12 Responses of Management of CDA

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (CDA) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts in exhorting workers to work for the interest of employer

124

Table 13 Responses of Management of IESCO

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph FS 5

Total 9

Mean 92 = 45

Organizational Mean (IESCO) = Σ Xi2 = 92 = 45

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 45 which is more than 3 (Indifferent level) showing union of IESCO

is exerting efforts in exhorting workers to work for the interest of employer

125

Table 14 Responses of Management of KTM

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 84 = 400

Organizational Mean (KTM) = Σ Xi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts in exhorting workers to work for the interest of employer

126

Table 15 Responses of Management of OGDC

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 3 5

Organizational Mean (OGDC) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL

is exerting efforts in exhorting workers to work for the interest of employer

127

Table 16 Responses of Management of PCP

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PCP) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is

exerting efforts in exhorting workers to work for the interest of employer

128

Table 17 Responses of Management of PTCL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph ND 3

Total 6

Mean 62 = 30

Organizational Mean (PTCL) = Σ Xi2 = 62 = 30

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 3 which is equivalent to Indifferent level showing employer of PTCL

is at indifferent level and union is tolerable for employer Here again unionsrsquo

performance needs much improvement

129

Table 18 Responses of Management of PTV

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PTV) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PTV is

exerting efforts in exhorting workers to work for the interest of employer

130

Table 19 Responses of Management of SNGPL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (SNGPL) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL

is exerting efforts in exhorting workers to work for the interest of employer

131

Table 20 Responses of Management of ZTBL

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 82 = 400

Organizational Mean (ZTBL) = Σ fXi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is

exerting efforts in exhorting workers to work for the interest of employer

132

53 VARIABLE-WISE ANALYSIS

In this section performance of unions has been estimated by measuring

satisfaction level of respondents ie workers and employers in the lights of their

responses for every variable by applying arithmetic mean and Chi squire

Mean of satisfaction level of workers of all the sample for all 15 variables has

been calculated individually in tables from table 21 to table 35 and then combine mean

of satisfaction level of all variable has been calculated in lsquotable 36rsquo by adding these

individual variable means and dividing it on 15 which is total number of variable

In tables 21 to 35 totals of columns 3 to 7 have been multiplied by their

respective value (given in top row stubbed lsquoValuersquo) to obtain valued total and these

valued totals of all columns have been added and divided by lsquoNrsquo which is total of

respondents (total of sample) and equal to 525 the outcome is lsquovariable meanrsquo for

concerned variable This mean measures the satisfaction level of all the sampled

workers on the efforts of unions exerted for that single benefit

Chi square test has been applied on 15 variables in tables 37 to 51 on totals of

columns fetched from tables 21 to 35 respective variable at significance level of 005

and degree of freedom according to data of variable Calculated values of Chi square

have been compared with table value at 005 significance level and respective degree

of freedom In case calculated value is greater than table value the hypothesis for that

variable is to be rejected and alternative view is to be accepted

133

531 MEAN CALCULATION OF VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERSrsquo BENEFITS

Variables that are measuring unionsrsquo efforts for securing benefits for workers

are fifteen These have been analyzed by constructing tables and calculating their

arithmetic mean

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 21 Mean calculations-wage rise (Wris)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 20 8 - -

CDA 70 40 14 16

IESCO 70 - 26 22 22 -

KTM 35 - 10 4 21

OGDCL 50 - 35 15 - -

PCP 50 37 4 9

PTCL 70 28 18 24 -

PTV 50 6 26 14 4

SNGPL 50 7 30 10 3

ZTBL 50 - 32 14 4 -

Total (f) 525 15 284 123 103 -

fXi 75 1136 369 206 - 1786

Variable Mean = Σ fXi 525 =1786 525 = 340

134

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization (ten organizations) for Wage rise of workers

is 340 which is bigger than 3 (Indifferent Level) showing unions as a whole have

exerted effective efforts for rise in wages of worker

Efforts of unions for wage rise can be estimated from this fact that at time of

survey (December 2006) minimum wage was Rupees 4000 but 324952 workers

were earning wages between Rupees 5000 and 10000 and 4952 between 10000

and 20000 and 118 percent were getting wages even more than rupees 20000

(Appendix C-3) Rise in wages was 15 to 35 except of KTM (see Appendix C-1)

This is really an achievement at the part of labor unions proving their success

Out of 525 respondents 15 were very satisfied 284 satisfied 123 indifferent

and only 103 were unsatisfied (see Table 21 and Figure2)

Management of all the organizations Except KTM also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

So Hypothesis 1 that unions did not exert efforts for wage rise of workers is

rejected and alternate view is established

Figure-2 - Satisfaction Level of Workers on Wage Rise

Very Satisfied 15

3

Satisfied 284 54

Indifferent 123 23

un-Satisfied 103 20 Very Satisfied

SatisfiedIndifferentun-Satisfied

135

Hypothesis 2 (H2) Unions did not exert efforts for financial benefits like bonus of Workers

Table 22 Mean Calculations - Bonus (Financial Benefits) (Fbft)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 16 4 2 -

CDA 70 62 6 2

IESCO 70 2 12 56 -

KTM 35 - 17 17 1

OGDCL 50 2 34 10 4 -

PCP 50 33 8 9

PTC) 70 14 16 40

PTV 50 - 36 12 2

SNGPL 50 5 30 12 3

ZTBL 50 28 14 8 -

Total (f) 525 15 272 111 127

fXi 75 1088 333 254 1750

Variable Mean = Σ fXi 525 =1750 525 = 333

136

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Fringe Benefits (Bonus) of workers is

333 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for obtaining bonuses for worker So Hypothesis 2 that

unions did not exert efforts for financial benefits like bonus of workers is rejected and

alternate view is established

Except PCP workers of all other organizations are getting bonuses and in some

organizations bonuses are two or more ARL paid 5 and KTM has paid 4 bonuses in

previous charter (Appendix C-1) ARL KTM and OGDCL pay 5 percent of their

profit to workers and KTM besides this also makes payment to social security and 5

percent equivalent of workersrsquo salary to Employees Old Age Benefit department

(Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Out of 525 respondents 15 were very satisfied 272 satisfied 111 indifferent

and only 127 were unsatisfied (see Table 22 and Figure-3)

Management of all the organizations except IESCO also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

Figure-3 - Satisfaction Level of Workers on Financial Benefits

Very Satisfied 15

3

Satisfied 272 52Indifferent

111 21

un-Satisfied 127 24 Very Satisfied

SatisfiedIndifferentun-Satisfied

137

Hypothesis 3 (H3) Unions did not exert efforts for Job Security of workers

Table 23 Mean Calculations Job Security (J-sec)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 18 4 - -

CDA 70 48 18 4

IESCO 70 7 40 13 10 -

KTM 35 - 15 10 10

OGDCL 50 - 45 5 - -

PCP 50 4 40 4 2

PTC) 70 2 39 15 14 -

PTV 50 7 39 3 1

SNGPL 50 5 34 11

ZTBL 50 26 20 4 - -

Total (f) 525 59 338 87 41 0

fXi 295 1352 261 82 1990

Variable Mean = Σ fXi 525 =1990 525 = 379

138

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Job Security of workers is 379which is

bigger than 3 (Indifferent Level) showing unions as a whole have exerted effective

efforts for Job Security of worker

Out of 525 respondents 59 were very satisfied 338 satisfied 87 indifferent and

only 41 were unsatisfied (see Table 23 and Figure-4)

Employees of all the organizations under study are enjoying job security due to

unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts of

unions for job security only 41 workers were unsatisfied (Table23)

Management of all the organizations also confirmed that unions have been

exerting efforts for workers job security (see tables in appendices F-1 to F-10 column

management responses)

So hypothesis 3 that unions did not exert efforts for Job Security of workers is

rejected and alternative view is established

Figure-4 - Satisfaction Level of Workers on Job Security

Very Satisfied 59

11

Satisfied 338 64

Indifferent 87 17

un-Satisfied 41 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

139

Hypothesis 4 (H4) Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 24 Mean Calculations Time Reduction (Td)

Satisfaction Level No VS S IND US VUS Σ fXi

values (Xi) 5 4 3 2 1

Organization

ARL 30 16 14 - -

CDA 70 36 32 2 -

IESCO 70 - 40 23 7 -

KTM 35 - 13 13 9

OGDCL 50 - 40 10 - -

PCP 50 40 4 6

PTCL 70 40 20 10 -

PTV 50 37 10 3

SNGPL 50 34 16

ZTBL 50 28 16 6 -

Total (f) 525 - 324 158 43

fXi 1296 474 86 1856

Variable Mean = Σ fXi 525 = 1856525 = 354

140

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Reduction in daily duty hours or

resistance offered for increase of time duration of workers is 354 which is bigger

than 3 (Indifferent Level) showing that unions as a whole have exerted effective

efforts for timings of worker

Only one organization KTM has 48 working hours per week at the rate of 8

hours per day Two organizations ARL and PCP have 40 working hours per week and

other seven organizations have weekly working hours less than 40 (Appendix C-2)

This time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation Out of 525 respondents 324 were

satisfied 158 indifferent and only 43 were unsatisfied (see Table 24 and Figure-5)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except management of

CDA PTV and SNGPL (see tables in appendices F-1 to F-10 column management

responses)

So the hypothesis 4 that unions did not exert efforts for time decrease or

offered resistance against time increase of workers is rejected and alternative view is

established

Figure-5 - Satisfaction Level of Workers on Time Reduction

Very Satisfied 0

0

Satisfied 324 62

Indifferent 158 30

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

141

Hypothesis 5 (H5) Unions did not exert efforts for health facilities Table 25 Mean Calculations - Health Facilities (Hfac)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 6 4

CDA 70 40 14 16

IESCO 70 26 24 20 -

KTM 35 6 25 4 -

OGDCL 50 17 28 5 - -

PCP 50 40 5 5

PTCL 70 44 16 10 -

PTV 50 37 5 8

SNGPL 50 4 34 10 2

ZTBL 50 1 38 4 7 -

Total (f) 525 28 332 93 72 -

fXi 140 1328 279 144 1891

Variable Mean = Σ fXi 525 = 1891525 = 360

142

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Health Facilities of workers is 360

which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for Health Facilities of worker

All the organizations are providing medical treatment facilities to their workers

(Appendix C-2) and out of 525 responding workers 28 were very satisfied 332

workers were satisfied 93 indifferent and 72 were un-satisfied (Table-25 amp figure-6 )

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 5 that unions did not exert efforts for health facilities is

rejected and alternative view is established

Figure-6 - Satisfaction Level of Workers on Health Facilities

Very Satisfied 28

5

Satisfied 332 63

Indifferent 93 18

un-Satisfied 72 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

143

Hypothesis 6 (H6) Unions did not exert efforts for workersrsquo children education facility

Table 26 Mean calculations- Children Education (Ced)

Variable Mean = Σ fXi 525 = 1583525 = 302

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 14 10 4

CDA 70 13 48 9

IESCO 70 9 44 17 -

KTM 35 4 20 11 -

OGDCL 50 - 8 36 06 -

PCP 50 11 16 23

PTCL 70 11 32 27 -

PTV 50 13 20 17

SNGPL 50 6 22 22

ZTBL 50 22 22 6 -

Total (f) 525 6 127 261 131

fXi 30 508 783 262 1583

144

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Children Education Facilities for

workers is 302 which is very slightly bigger than 3 (Indifferent Level) showing that

unions as a whole have exerted efforts for Education Facilities for children of workers

The satisfied workers 133 (6+127) and unsatisfied workers 131 are almost

equal with 261 indifferent workers on this facility which shows that unions need to put

more efforts for this facility (Table-26 amp Figure -7)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

PCP (see tables in appendices F-1 to F-10 column management responses)

So the hypothesis 6 that unions did not exert efforts for workersrsquo children

education facility is rejected and alternate view is established

Figure-7 - Satisfaction Level of Workers on Children Education Facilities

Very Satisfied 6

1Satisfied

127 24

Indifferent261 50

Un-Satisfied 131 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

145

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 27 Mean Calculations - Over Time Payment (Ot)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 10 - -

CDA 70 30 32 8

IESCO 70 36 20 14 -

KTM 35 - 12 15 8

OGDCL 50 - 22 16 12 -

PCP 50 37 9 4

PTCL 70 10 38 22 -

PTV 50 41 6 3

SNGPL 50 3 21 23 3

ZTBL 50 16 12 22 -

Total (f) 525 3 245 181 96

fXi 15 980 543 192 1730

Variable Mean = = Σ fXi 525 1730525 = 330

146

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Over Time Payment of workers is 330

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for Over Time Payment to worker

On unionsrsquo efforts 3 workers were very satisfied 245 were satisfied and 96

workers un-satisfied while 181 workers were indifferent (Table-27 amp figure 8)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 8 that unions did not exert efforts for overtime payment for

over working is rejected and alternate view is established

Figure-8 - Satisfaction Level of Workers on Over Time Payment

Very Satisfied 3

1Satisfied 245 47

Indifferent 181 34

un-Satisfied 96 18

Very SatisfiedSatisfiedIndifferentun-Satisfied

147

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions Table 28 Mean Calculations - working conditions (Wcon) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 4 22 4 - -

CDA 70 30 28 12

IESCO 70 50 10 10 -

KTM 35 - 30 5 -

OGDCL 50 4 33 10 3 -

PCP 50 39 6 5

PTCL 70 36 24 10 -

PTV 50 39 11

SNGPL 50 3 40 4 3

ZTBL 50 32 14 4 - -

Total (f) 525 43 333 106 43

fXi 215 1332 318 86 1951

Variable Mean = Σ fXi 525 = 1951525 = 372

148

Analysis

The overall mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Working Conditions of workers is 372

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for arrangements of better working conditions for workers

On unionsrsquo efforts 43 workers were very satisfied 333 workers were satisfied

as compared to 43 un-satisfied workers while 106 were indifferent (Table-28 amp Figure

9) It means unions have really exerted efforts for working conditions

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 8 that the unions did not exert efforts for better working

conditions is rejected and alternate view is established

Figure-9 - Satisfaction Level of Workers on Working Conditions

Very Satisfied 43

8

Satisfied 333 64

Indifferent 106 20

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

149

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 29 Mean Calculations- leaves facility (Linc) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 24 6 - -

CDA 70 35 33 2

IESCO 70 - 40 25 5 -

KTM 35 - 10 16 9 -

OGDCL 50 40 10 - -

PCP 50 38 7 5

PTCL 70 36 24 10

PTV 50 38 9 3

SNGPL 50 32 18 -

ZTBL 50 28 14 8 -

Total (f) 525 0 321 162 42

fXi 1284 486 84 1854

Variable Mean = Σ fXi 525 = 1854525 = 353

150

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for increasing annual leaves of workers or

offering resistance against decrease of leaves is 353 which is bigger than 3

(Indifferent Level) showing that unions as a whole have exerted effective efforts for

increase of Leaves of worker

Annual paid leaves for seven organizations are 68 and for IESCO are 73 where

as only for two organizations are 40 This is a reasonable time for rest and enjoyment

On unionsrsquo efforts 321 workers were satisfied as compared to 42 un-satisfied workers

which shows that unions have really exerted efforts for exacting this facility (Table-

29 amp Figure 10)

Management of all the organizations also confirmed that unions have depicted

their intention to resist the decrease of leaves (see tables in appendices F-1 to F-10

column management responses)

So the hypothesis 9 that unions did not exert efforts for leaves increase or

resist against leaves decrease is rejected and alternate view is established

Figure-10 - Satisfaction Level of Workers on Leave Facilities

Very Satisfied 0

0

Satisfied 321 61

Indifferent 162 31

un-Satisfied 42 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

151

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 2 14 14 78

CDA 70 14 50 6 0 - 288

IESCO 70 - 4 46 20 - 194

KTM 35 - 17 10 8 - 114

OGDCL 50 - 27 13 10 - 167

PCP 50 - 5 30 15 - 140

PTCL 70 4 44 22 192

PTV 50 21 24 5 166

SNGPL 50 - 37 8 5 - 182

ZTBL 50 2 18 30 - 122

Total = (f) 525 14 169 213 129

fXi 70 676 639 258 0 1643

Variable Mean = Σ fXi 525 =1643 525 = 313

152

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Post Retirement Benefits (Like pension)

of workers is 313 which is greater than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for post retirement benefits of worker

The satisfied workers are 183 (14 + 169) but unsatisfied workers 129 are also

not less while 213 workers are indifferent which shows that unions need to put more

efforts for this facility (Table-30 amp Figure-11)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

However the hypothesis 10 that the unions did not exert efforts for

postretirement benefits like pension of workers is rejected and alternate view is

established

Figure-11 - Satisfaction Level of Workers on Post Retirement Benefits

Very Satisfied 14

3

Satisfied 169 32

Indifferent 213 40

un-Satisfied 129 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

153

Hypothesis 11 (H11) Unions did not exert efforts for arranging recreation

facilities

Table 31 Mean Calculations -Recreation facilities (Rfac) Satisfaction Level No VS S IND US VUS Σ fXi

Value (Xi) 5 4 3 2 1

Organization

ARL 30 2 10 8 10

CDA 70 58 12

IESCO 70 47 23 -

KTM 35 - 16 10 9

OGDCL 50 18 14 14 04 -

PCP 50 - - 30 20 -

PTCL 70 40 30

PTV 50 10 34 6

SNGPL 50 16 30 2 2 -

ZTBL 50 28 22 -

Total (f) 525 36 80 271 138 -

fXi 180 320 813 276 1589

Variable Mean = = Σ fXi 525 1589525 = 303

154

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Recreational Facilities of workers is

303Which is slightly greater than 3 (Indifferent Level) showing that unions as a

whole have some exerted efforts for Health Facilities of worker

The satisfied workers are 116 (36 + 80 ) but unsatisfied workers 138 while

271 workers are indifferent which shows that unions need to put more efforts for this

facility (Table-31 amp Figure 12) The mean being more than 3 is due to the fact that 36

workers were very satisfied which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except in CDA KTM

PCP and PTCL (see tables in appendices F-1 to F-10 column management responses)

However the hypothesis 11 that the unions did not exert efforts for arranging

recreation facilities is rejected and alternate view is established

Figure-12 - Satisfaction Level of Workers on Recreational Facilities

Very Satisfied 36

7

Satisfied 80 15

Indifferent 271 52

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

155

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 32 Mean Calculations - training opportunities (Top) Satisfaction Level No VS S IND US VUS Σ fXi Values (Xi) 5 4 3 2 1 Organization ARL 30 18 8 4 CDA 70 10 20 40 IESCO 70 22 34 14 - KTM 35 22 13 OGDCL 50 4 19 20 7 - PCP 50 - - 24 26 - PTCL 70 16 40 14 PTV 50 16 24 10 SNGPL 50 - 10 34 6 - ZTBL 50 26 20 4 - Total (f) 525 4 137 246 138 fXi 20 548 738 276 1582

Variable Mean = Σ fXi 525 = 1582525 = 301

156

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Training Opportunities of workers is 301

which is very marginally bigger than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for training opportunities of worker but need to exert

more efforts

The satisfied workers 141 (4 + 137) and unsatisfied workers 138 are almost

equal with 246 indifferent workers showing that unions need to put more efforts for

this facility (Table-32 amp figure 13) The mean being more than 3 is due to the fact that

246 workers were indifferent which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except KTM (see tables in

appendices F-1 to F-10 column management responses)

However the as hypothesis 12 that unions did not exert efforts for arranging

training opportunities for workers is rejected and alternate view is established

Figure-13 - Satisfaction Level of Workers on Training Opportunities

Very Satisfied 4

1 Satisfied 137 26

Indifferent 246 47

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

157

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers

wagessalary difference

Table 33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 6 8 12 4

CDA 70 28 28 14

IESCO 70 - 2 37 31 -

KTM 35 2 7 26

OGDCL 50 5 26 14 5 -

PCP 50 5 37 8

PTCL 70 32 38

PTV 50 23 14 13

SNGPL 50 - 17 28 5

ZTBL 50 2 20 22 6 -

Total (f) 525 13 131 231 150

fXi 65 524 693 300 1582

Variable Mean = Σ fXi 525 =1582 525 = 301

158

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for decreasing workers officers wage salary

gap is 301 which is very marginally greater than 3 (Indifferent Level) showing that

unions as a whole have exerted some efforts for decreasing gap of remunerations

between officers and worker

The satisfied workers 144 (13 + 131) are slightly less than 150 unsatisfied

workers with 231 workers indifferent (Table-33 amp Figure 14) The mean touching to

indifferent level is due to the fact that 13 responses are of very satisfied This demands

that unions need to put more efforts for exacting this facility

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

IESCO KTM and PCP (see tables in appendices F-1 to F-10 column management

responses)

However the hypothesis 13 that unions did not exert efforts for decreasing

workersofficers wagessalary difference is rejected and alternate view is established

Figure-14 - Satisfaction Level of Workers on Decreasin Wage Difference

Very Satisfied 13

2

Satisfied 131 25

Indifferent 231 44

un-Satisfied 150 29

Very SatisfiedSatisfiedIndifferentun-Satisfied

159

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 34 Mean calculations - informing about rights (Ir) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

(ARL) 30 16 12 2

(CDA) 70 54 10 6

(IESCO) 70 49 10 11

KTM 35 20 12 3

(OGDCL) 50 34 12 4

(PCP) 50 20 21 9

(PTCL) 70 18 34 18

PTV 50 30 10 10

(SNGPL) 50 25 14 11

(ZTBL) 50 4 34 7 5

Total (f) 525 4 300 142 79

fXi 20 1200 426 158 1804

Variable Mean = Σ fXi 525 =1804525 = 344

160

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations giving awareness to workers for their rights

is 344 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted efforts for informing worker about their rights as worker

On unionsrsquo efforts 304 (4 + 300) workers were satisfied as compared to 79 un-

satisfied workers which shows that unions have really exerted efforts for exacting this

facility (Table-34 amp Figure 15)

So the hypothesis 14 that unions did not exert efforts for informing workers

about their rights is rejected and alternate view is established

Figure-15 - Satisfaction Level of Workers on Informing About Rights

Very Satisfied 4

1

Satisfied 300 57

Indifferent 142 27

un-Satisfied 79 15

Very SatisfiedSatisfiedIndifferentun-Satisfied

161

Hypothesis 15 (H15) Unions did not exert efforts for workersrsquo education Table 35 Mean calculations - workersrsquo education (We)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 12 14 4

CDA 70 28 34 8

IESCO 70 - 36 24 10 -

KTM 35 12 17 6

OGDCL 50 - 21 19 10 -

PCP 50 - 30 20 -

PTCL 70 19 39 12

PTV 50 33 8 9

SNGPL 50 15 25 10

ZTBL 50 28 18 4

Total (f) 525 234 218 73

fXi 936 654 146 1736

Variable Mean = Σ fXi 525 = 1736525 = 331

162

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for workersrsquo education is 331 which is

bigger than 3 (Indifferent Level) showing that unions as a whole have exerted efforts

for workersrsquo education facilities

On unionsrsquo efforts 234 workers were satisfied as compared to 73 un-satisfied

workers with 218 indifferent responses which shows that unions have really exerted

efforts for exacting this facility (Table-35 amp Figure-16) though there is need of more

efforts

Management of all the organizations also confirmed that unions have been

requesting for making arrangements for workers education (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 15 that unions did not exert efforts for workers education

facilities is rejected and alternate view is established

Figure-16 - Satisfaction Level of Workers on Workers Education

Very Satisfied 0

0Satisfied 234 44

Indifferent 218 42

Un-Satisfied 73 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

163

5311 Combined Mean of All Workers Variables = (Sw)

By using means of the individual variables calculated in tables 21 to 41

Combine Mean has been calculated by arranging this data in Table 42 and using the

Equation

Table 36 Summary of means of workers variables and calculation of combined mean

Variables (to measurement of unionrsquos efforts for workers)

Means of Satisfaction Level of Workers ( i)

Wris 340

Fbft 333

Jsec 379

Td 354

Linc 353

Ot 330

Wcon 372

Hfac 360

Ced 302

Prb 313

Rfac 303

Top 301

We 331

Wdf 301

Ir 344

Total = Σ i 5016

Combined Mean (Sw) = (Workers Satisfaction) 50615 = 334

164

Data from Tables 21 to 35

By putting values of the total second column in the equation

Combine Mean = Σ i N

SW = (Wris + Fbft +Jsec + Td + Hfac + Ced + Ot +Wcon +

+ Linc + Prb + Rfac + Top + Wdf + Ir + We)15

Sw = 501615 = 334 (approximately)

As the Combine Mean is 334 which is greater than 3 the lsquoindifferent levelrsquo so

it is accepted that workers are satisfied with the unionsrsquo efforts and unions are

successful in securing benefits for workers

165

Figure 17a Diagrammatic Presentation of Means of Workers Variables (Bar

Diagram)

(Height of bars indicates mean of variable)

0

1

2

3

4

5

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

Figure 17b Diagrammatic Presentation of Means of Workers Variables (Line Graph)

012345

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

166

532 CHI SQUARE TEST APLICATION

For testing the correctness of Hypotheses H1 to H15 Chi square has also been

applied in tables 37 to 51 on the data of respective variable Expected values (fe) have

been subtracted from (fo) observed values and squared and then divided by expected

values added to each other to obtain calculated value of chi square Then calculated

value is compared with table value If it is greater than table value then it is significant

so hypothesis of respective variable is to be rejected and opposite view is to be

established Observed values for chi square application have been fetched from row

stubbed lsquoTotal (f)rsquo in tables 21 to 35

167

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 37 Chi square calculations Wage rise (Wris)

Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-( χ2)

(fo) 15 284 123 103 - 525

(fe) 13125 13125 13125 13125 - 525

(fo-fe)2 131514 2333256 6806 79806 -

χ2cal =

(fo-fe)2 fe 10296 17777 055 608 28686 28686

(Figures used in this table fetched from row stubbed Total (f) in table 21)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 28686 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

1 that unions did not exert efforts for wage rise of workers is rejected and the

alternate view that unions have exerted efforts for wage rise of workers is established

168

Hypothesis 2 (H2) Unions did not exert efforts for fringe benefits like bonus of workers Table 38 Chi square calculations - Bonus (financial benefits) (f-bft)

Satisfaction Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 15 272 111 127 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1339781 1981056 41006 18062

χ2cal =

(fo-fe)2 fe 10296 15093 312 013 25714 25714

(Figures used in this table fetched from row stubbed Total in table 22)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 25714 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis2 is

rejected and the alternate view that unions did exert efforts for exacting fringe

benefits like bonuses for the workers is established

169

Hypothesis 3(H3) Unions did not exert efforts for Job Security of workers

Table 39 Chi square calculations ndash Job security (Jsec)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 59 338 87 41 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 522006 4274556 195806 814506

χ2cal =

(fo-e)2 fe 3977 32630 1491 6214 44312 44312

(Figures used in this table fetched from row stubbed Total in table 23)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 44312 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis3 that unions did not exert efforts for job security of the workers is reject

and the alternate view that unions did exert efforts for job security of the workers is

established

170

Hypothesis 4 Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 40 Chi square calculation - Time reduction (Td) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) - 324 158 43 - 525

(fe) 175 175 175 525

(fo-fe)2 22201 289 17424

χ2cal =

(fo-fe)2 fe

12686 165 9956 22807 22807

(Figures used in this table fetched from row stubbed Total in table 24)

Significant df = 2 χ2tab at 005 = 599

The calculated value of Chi Square test 22807 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

4 is rejected and the alternate view that unions did exert efforts for decreasing

working hours of the workers is established

171

Hypothesis 5 (H5) Unions did not exert efforts for health facilities

Table 41 Chi square calculations - Health facilities (Hfac)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 28 332 93 72 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1066056 4030056 146306 351056

χ2cal =

(fo-fe)2 fe 8122 30705 1114 2674 42615 42615

(Figures used in this table fetched from row stubbed Total in table 25)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 42615 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

5 that unions did not exert efforts for exacting health facilities for the workers is

rejected and the alternate view is established

172

Hypothesis 6 (H) Unions did not exert efforts for workersrsquo children education facility

Table 42 Chi square calculations - Children education (Ced)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 6 127 261 131 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1568756 18062 1683506 0625

χ2cal =

(fo-fe)2 fe 11952 137 12826 0004 24791 24791

(Figures used in this table fetched from row stubbed Total in table 26)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 24791 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis 6 is

rejected and the alternate view that unions did exert efforts for exacting children

education facilities for the workers is established

173

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 43 Chi square calculations - Over time payment (Ot) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 3 245 181 96 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1644806 1293906 247506 124256

χ2cal =

(fo-fe)2 fe 12531 9858 1885 946 2522 2522

(Figures used in this table fetched from row stubbed Total in table 27)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 2522 is greater than table value of Chi

square 782 at 005 significance level and 3 degree of freedom so the Hypothesis 7

that unions did not exert efforts for overtime payment for over working is rejected and

alternate view is established

174

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions

Table 44 Chi square calculations - working conditions (Wcon)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 43 333 106 43 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 778806 4070306 63756 778806

χ2cal =

(fo-fe)2 fe 5933 31011 485 5933 43362 43362

(Figures used in this table fetched from row stubbed Total in table 28)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi square test 43362 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

8 that unions did not exert efforts for better working conditions is rejected and

alternate view is established

175

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 45 Chi square calculations - Leaves facility (Linc) Satisfaction

Level VS S IND US VUS Total Chi Sq-χ2

(fo) 321 162 42 525

(fe) 175 175 175 525

(Fo-fe)2 21316 169 17689

χ2cal =

(fo-fe)2 fe

12180 096 18108 22384 22384

(Figures used in this table fetched from row stubbed Total in table 32)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 22384 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

9 that unions did not exert efforts for leaves increase or resist against leaves decrease

is rejected and alternate view is established

176

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 46 Chi square calculations - post retirement benefits facility (Prb)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 14 169 213 129 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1374756 142506 668306 506

χ2cal =

(fo-fe)2 fe 10474 1085 5091 003 16653 16653

(Figures used in this table fetched from row stubbed Total in table 33)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 16653 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis10 that the unions did not exert efforts for postretirement benefits like

pension of workers is rejected and alternate view is established

177

Hypothesis 11(H11) Unions did not exert efforts for arranging recreation facilities Table 47 Chi square calculations - Recreation facilities (Rfac) Satisfaction

Level VS S IND US VUS TOTAL Chi Sq-χ2

(fo) 36 80 271 138 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 907256 262656 1953006 4556

χ2cal =

(fo-fe)2 fe 6912 2001 1488 0347 23827 8663

(Figures used in this table fetched from row stubbed Total in table 34)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 23827 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

11 that the unions did not exert efforts for arranging recreation facilities is rejected

and alternate view is established

178

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 48 Chi square calculations - Training facilities (Top) Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-

χ2

fo 4 137 246 138 525

fe 13125 13125 13125 13125 525

(fo-fe)2 161925 33062 1316756 4556

χ2cal =

(fo-fe)2 fe 12337 251 10032 347 22428 22428

(Figures used in this table fetched from row stubbed Total in table 35)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 22428 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

12 that unions did not exert efforts for arranging training opportunities for workers is

rejected and alternate view is established

179

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers wagessalary difference Table 49 Chi square calculationsndashDecreasing workers officers wage salary gap (Wdf)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 13 131 231 150 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1398306 0625 995006 35156

χ2cal =

(fo-fe)2 fe 10653 0004 7581 267 18501 18501

(Figures used in this table fetched from row stubbed Total in table 36)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 18501 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

13 that unions did not exert efforts for decreasing workersofficers wagessalary

difference is rejected and alternate view is established

180

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 50 Chi square calculations - Informing about rights (Ir)

Satisfaction

Level

VS S IND US VUS TOTAL Chi Sq- χ2

(fo) 4 300 142 79 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1619256 2847656 11556 273006

χ2cal =

(fo-fe)2 fe 12337 21696 088 2080 36201 36201

(Figures used in this table fetched from row stubbed Total in table 37)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 36201 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

14 that unions did not exert efforts for informing workers about their rights is rejected

and alternate view is established

181

Hypothesis 15 (H15) Unions did not exert efforts for arranging education facilities for workers

Table 51 Chi square calculations - workersrsquo education (We)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 234 218 73 525

(fe) 175 175 175 525

(Fo-fe)2 3481 1849 10404

χ2cal =

(fo-fe)2 fe

1989 1056 5945 899 899

(Figures used in this table fetched from row stubbed Total in table 38)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 8989 is greater than table value of Chi

square 599 at 005 significance level and 2 degree of freedom so the Hypothesis 15

that unions did not exert efforts for arranging education facilities for workers is

rejected and alternate view that the unions exerted efforts for arranging education

facilities for workers is established

182

533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS

Efforts of unions for benefits and interest of employers have been measured by

Two variables These variables are Productivity or Efficiency increase (Pin)

Enhancement of workplace harmony (Wph) Three tables (table 52 to 54) have been

constructed In table 52 and 53 Means of individual variables are calculated and in

third table combine mean is calculated

First column contains the name of organizations column two contains

response of employersrsquo representative on the variable in the form of satisfaction level

and column three contains the value of the response In the last row all these values of

third columns are added and divided by number of respondents ie 10 to calculate the

variable mean If mean is equal to 3 then aggregately all the respondents are

indifferent and if variables mean is greater than indifferent level ie 3 then employers

are satisfied on unionsrsquo efforts and unions are successful to the extent of this variable

If mean of variable is less then 3 then unions are failed to the extent of this variable

Combined mean of two variables has been calculated in third table 54

Combine mean more than 3 shows satisfaction of management with unionsrsquo

performance and value of combine mean less than 3 indicates that unionsrsquo have not

exerted efforts for employers benefits so unions are not beneficial and value of

combine mean equal to 3 shows that employers is indifferent and unionsrsquo presence is

neither beneficial nor harmful

183

Hypothesis 16 (H16) Unions exerted no efforts for motivating workers to increase productivityefficiency

Table 52 Calculation of mean of management responses for unionsrsquo

efforts for productivity efficiency increase) (Pin)

Organization Name Management Responses

Value of Responses (Xi)

ARL IND 3

CDA IND 3

IESCO S 4

KTM S 4

OGDCL IND 3

PCP IND 3

PTCL IND 3

PTV IND 3

SNGPL IND 3

ZTBL S 4

Total 33

Variable Mean 3210 = 33

Variable Mean = Σ Xi N = 3210 = 33

184

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for increase of productivity or efficiency (by working in better way

with minimum loss and of good quality in minimum possible time) is 33 which is

slightly more than 3 (indifferent level) indicating that unions are exerting slight

efforts

Therefore the hypothesis 16 that unions exerted no efforts for motivating

workers to increase productivity is rejected and alternative view unions exerted efforts

for motivating workers to increase productivity is established

On viewing individually employers of only three organizations are satisfied

and of seven organizations are indifferent So these unions need to put more efforts in

motivating workers for increasing productivity efficiency

Figure-18 - Satisfaction Level of Employers on ProductivityEfficienc Increase

Indifferent 7 70

Satisfied 330

un-Satisfied 0 0

Very Satisfied 0

0Very SatisfiedSatisfiedIndifferentun-Satisfied

185

Hypothesis 17 Unions exerted no efforts for workplace harmony Table 53 Calculation of mean of management responses for workplace harmony

(Wph) Organization Name

Management Response

Values of Responses (Xi)

ARL S 4

CDA S 4

IESCO FS 5

KTM S 4

OGDCL S 4

PCP S 4

PTCL IND 3

PTV S 4

SNGPL S 4

ZTBL S 4

Total 40

Variable Mean = Σ Xi N = 4010 = 4

186

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for creating harmony at workplace is 4 which is more than 3

(indifferent level) Therefore the hypothesis 17 that unions exerted no efforts for

workplace peace and harmony is rejected and alternative view unions exerted efforts

for workplace peace and harmony is established

Viewing individually employer of one organization ie IESCO is fully

satisfied and of eight organizations are satisfied Management of only one

organization ie PTCL is indifferent So union of PTCL needs to put more efforts in

creating peace and harmony at workplace Otherwise over all performance of unions is

satisfactory

Figure-19 - Satisfaction Level of Employers on Work Place Harmony

Satisfied 8 80

Indifferent 1 10

un-Satisfied 0 0

Very Satisfied 1

10

Very SatisfiedSatisfiedIndifferentun-Satisfied

187

Table 54 Calculation of Combined Mean of Management Responses (Se)

Variables (for measurement of

unionsrsquo efforts for Employers)

Means of Satisfaction Level of

Employer ( i)

Organization

Pin 33

Wph 4

Total of Means 73

(Data from calculations of tables 52 amp 53

By putting the values of means of columns in the equation

Combine Mean = Σ i N = Se = (Pin + Wph)2

Se = (33 + 40)2 = 732

Se = 732 = 365

In this analysis PTCL management has lowest level of satisfaction on unionsrsquo

role because union recently called an unsuccessful strike lasting for 13 days against

the government of Pakistanrsquos decision of privatization of the company Performance

of unions of other organizations is satisfied with mean greater than indifferent level

ie 3

As the combined mean of all the variable measuring unions efforts for

developing human resources for the benefit of employer is 365 that is greater than 3

the indifferent level so it is established that unions are working for interest of

employers and they are satisfied with them and unions are successful in satisfying

employers

188

Figure 20a Diagrammatic Presentation of Means of Employers Variables

(Bar Diagram)

012345

Pin Wph Se

(Height of bars indicates mean of variable)

Figure20b Diagrammatic Presentation of Means of Employers Variables

(Line Graph)

0

1

2

3

4

5

Pin Wph Se

189

No Success

Partial Success

Partial Success

Success S e = 365 Sw = 334

Figure 4 Diagrammatic Presentation of success of unions (Success Matrix)

5 1 5 2 5 3 5 4 Sw = 5 Se = 5

Sw = 5 Se = 1

Sw = 4 Se = 1

Sw = 3 Se = 1 Tolerable

Sw = 2 Se = 1

Sw = 1 Se = 1

11 12 13 14 Sw = 1 Se = 5 In the success matrix of diagram 4 satisfaction of workers is represented vertically

and satisfaction of employers is represented horizontally The dark grey portion of the

matrix shows no success or failure zone In this cage both Sw and Se are less than 3

(these are 11 21 31 22 32 or 12 13 ) Two light grey portions are areas of partial

success The upper light grey cage where Sw is greater than 3 showing workers are

satisfied but Se is less than 3 showing employers are unsatisfied While the Lower

light grey portion where Se is greater than 3 showing employers are satisfied but Sw is

less than 3 showing workers are unsatisfied also indicates partial success Joining

point of all four cages is tolerable point where both Sw and Se are 3 White cage

where both Sw and Se are more than 3 is success zone Values of both Sw (334) and

Se (365) are lying in success cage

190

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED WORKERS

To assess the unions role in securing the benefits for workers comparison of

facilities availed by permanent workers and temporary workers working in the same

organization has been made It is to determine whether facilities availed by unions

members are really due to unionsrsquo efforts or just because of government blessings For

this comparison of facilities ie Wage rise Job Security Daily working hours

Working conditions Facilities for children education Health care or medical treatment

facilities Fringe benefits like bonus Other of financial benefits and Yearly paid leaves

for both categories of workers has been made in the tables 55 and 56 Table 55 is for

facilities availed by Temporary workers and table 56 is for facilities by permanent

workers

Table 55 Facilities of temporary workers (Not Union Members)

Org Name

Wris Jsec Weekly Hours

Wcon Child education

Health facilities

Fringebft Bonus

Misc-All

Yearly Leaves

ARL Little No 46 Right No No No No 32

CDA Little No 39 Right No Yes Yes Yes 48

IESCO Little No 375 Right No No No No 22

KTM Little No 48 Right No Yes No No 18

OGDCL Little No 385 Right No Yes Yes No 40

PCP - - - - - - - - -

PTCL Little No 41 Right No No No No 36

PTV Little No 365 Right No Yes Yes No 21

SNGPL Little No 39 Right No No No No No

ZTBL Little No 39 Right No No No No No

No temporary worker in the organization

191

Table 56 Facilities of Permanent Workers (Union Members)

Org Name

Wris

Jsec Weekly Hours

Wcon Child educati

on

Health facilities

Fringebft

Bonus

Misc-All

Yearly Leaves

ARL 18 Yes 40 Right Little Yes 4+ Yes 29-40

CDA 20 Yes 39 Right Little Yes 2 Yes 68

IESCO 15 Yes 375 Right Little Yes No Yes 73

KTM - Yes 48 Right Little Yes 1 Yes 40

OGDCL 20 Yes 385 Right Little Yes 2+ Yes 68

PCP 15 Yes 40 Right Little Yes No Yes 68

PTCL 35 Yes 41 Right Little Yes 1 Yes 68

PTV 25 Yes 365 Right Little Yes 1 Yes 68

SNGPL 15 Yes 39 Right Little Yes 2 Yes 68

ZTBL 15 Yes 39 Right Little Yes 2 Yes 68

Wage Rise Permanent unionized workers are availing increase in wages in every

charter of demand that is from 15 to 35 percent whereas temporary non unionized

workers receive very little wage rise Wage rise sometimes received by permanent

workers announced by government in annual budget is besides this Where as

temporary workers are also deprived from this blessing as mater of right

Job Security Temporary workers do not have job security while permanent workers

have full job security and when 750 staff members ZTBL were forcefully retired in

December 2005 their union went on strike which lasted for 33 days and management

had to reinstate them

Daily Working Hours Working hours are same for both categories of workers as

usually time is fixed by government and not demanded in charter of demand

192

Working Conditions Working conditions are same for both categories of workers

because both work in the same premises

Children Education Facilities Temporary workers have no employerrsquos provided

facility at all for children education whereas permanent workers are having it though

condition for them is not very satisfactory

Health Facilities All the permanent workers are enjoying health facilities usually

for self and for family but temporary workers in four organizations avail it for self

only

Financial Benefits Permanent workers of 8 organizations are enjoying bonus

facilities whereas temporary workers only in three organizations are enjoying it and

workers commented that this is also because of unions efforts

Miscellaneous Allowances Permanent workers of all the organizations are enjoying

any of small financial allowance or facility but temporary workers of only one

organization CDA are enjoying it

Yearly Paid Leaves Permanent workers of all the organizations are enjoying yearly

leaves facility much more than their temporary colleagues In majority of

organizations leaves facilities are 68 (20 casual leaves and 48 privileged earn leaves)

Privilege leaves are encashable at the time of retirement Temporary workers in some

organizations have no leave facility and if they go on leave it is treated as with out

pay As in SNGPL and ZTBL and situation in other organizations is also poor

It is revealed from comparison of both the tables that these facilities are

enjoyed by majority of unionized workers while non-unionized workers are not

availing these facilities if these facilities are enjoyed by non-unionized workers in any

organization beneficiaries admitted that this is because of unionsrsquo efforts

193

56 WORKERS RESPONSES FOR QUESTIONS ABOUT ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS STATUS AS COMPARED TO PAST

These all points have been assessed by asking questions given in the table 57

and calculating percentage of the responses

Table 57 Essentiality inter union relations and unions status as compared to past

QNO18 Is union Essential in your organization

QNO 19 Are inter union relations good in your organization

QNO 20 Are unions of today weaker than unions in the past

Number of Number of

Responses

Number of

Responses

Number of

Responses

Org Name Res Unions in Org

Yes No Yes No Yes No

ARL 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

AGE 100 96 4 14 86 81 19

194

Ninety six percent workers are favoring the need of unions for workers in the

organizations and commented that unions provide job security and exert efforts for

financial benefits and also provide courage and lessens the fear of employers

However they stressed on the need of exertion of more efforts by unions for exacting

benefits for workers Few workers also groused for unionsrsquo partiality and inter union

rivalry Only 4 percent replied that unionsrsquo existence or non-existence makes no

benefit or harm to the workers

Eighty six percent workers replied that unions remain in conflict with each

other where unions in the organization are more than one This inter union rivalry

weakened their power and damaged their efforts for securing benefits for workers

Eighty one percent workers commented that unions of present day are

comparatively weaker than unions of a decade before and during interview

commented that unions in the democratic regime work well while in non-democratic

regime they become weak and less effective

CHAPTER 6

DISCUSSION CONCLUSION AND RECOMMENDATIONS

61 DISCUSSION

In the light of analysis of data made in chapter four the role of labor unions in

working for benefits of workers and employers is discussed here for arriving at a

conclusion This role is discussed in two ways ie organization-wise performance of

every union and variable-wise collective performance of all unions

611 Organization-Wise Performance of Unions

Analysis of unionsrsquo performance in context of efforts for securing benefits for

workers and protecting their interest has been made in tables 1 to 10 and of unionsrsquo

performance in context of efforts for protecting interest of employer has been made in

tables 11 to 20 Employerrsquos endorsement on unionsrsquo performance is revealed in

columns of employer responses by Y or N in tables in appendices F-1 to F-10

Performance of the unions is discussed below in the light of data analysis of

previous chapter

6111 ARL Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level organizational mean 356 more than 3 It means

majority of workers are satisfied and union is successful Employer has also confirmed

their efforts

In employerrsquos context the performance of union is satisfactory for establishing

work place peace and harmony but at indifferent level in productivity or performance

increase However as a whole performance of ARL union is satisfactory with 35 value

196

of mean of satisfaction level of all the variables of employer Majority of workers

confirmed exertion of unionrsquos efforts for employer Its means union is successful

6112 CDA Union

In workers context the performance of union is satisfactory with satisfaction

level mean 336 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for Time Decrease

Leave increase Recreation facilities and workers education facilities

In employerrsquos context the performance of union is satisfactory for establishing

work place harmony while at indifferent level in Productivity or performance increase

but as a whole performance of CDA union is satisfactory with 35 value of mean of

satisfaction level of all the employerrsquos variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

6113 IESCO Union

In workers context the performance of union is satisfactory with satisfaction

level mean 312 more than 3 As the score of union is hardly above the indifferent

level and union needs to put more efforts Employer has also confirmed their efforts

except for financial benefits workersrsquo officersrsquo wage difference leave increase and

Workersrsquo education

In employerrsquos context the performance of union is satisfactory for

improvement of Efficiency of workers and establishing work place harmony as a

whole performance of IESCO union is satisfactory with 450 value of mean of

satisfaction level of all the variables Majority of workers confirmed exertion of

unionrsquos efforts for employer It means employer is satisfied and union is successful

6114 KTM Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level weighted mean 322 more than 3 Employer has

197

also confirmed their efforts except for wage rise workers officers wage difference

time decrease leave increase overtime payment recreation facilities and training

opportunities Wages in textile sector are fixed by Wage Board where union union has

no representation so wages are not fixed properly Unionrsquos efforts in social services

health facilities were acknowledged by workers

In employerrsquos context the performance of union is satisfactory for every

variable with 400 value of mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6115 OGDC Union

In workers context the performance of union is satisfactory with satisfaction

level weighted mean 361 more than 3 It means majority of workers are satisfied and

union is successful Employer has also confirmed their efforts

In employersrsquo context the performance of union is satisfactory as a whole with

350 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

6116 PCP Union

In workers context the performance of union is satisfactory with satisfaction

level mean 332 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for workers officers wage

difference education of workers children recreation facilities training opportunities

and workersrsquo education

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

198

6117 PTCL Union

In workers context the performance of union in exerting efforts for securing

benefits for workers is hardly satisfactory with satisfaction level mean 302 which is

negligibly more than 3 It means satisfactory and unsatisfactory workers are almost

equal and union is marginally successful and needs improvement in efforts Employer

has confirmed their efforts except for children education post retirement benefits and

recreation facilities

In employerrsquos context the performance of union is 3 only equivalent to

indifference level as value of weighted mean of satisfaction level of all the variables

A marginal majority of workers confirmed exertion of unionrsquos efforts for employer It

means employer is indifference with unionrsquos performance and PTCL union needs

much improvement in this area

6118 PTV Union

In workers context the performance of union is satisfactory with satisfaction

level mean 350 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for recreation facilities

In employerrsquos context the performance of union is satisfactory as a whole with

350 value of weighted mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6119 SNGPL Union

In workers context the performance of union for securing benefits for workers

is satisfactory with satisfaction level mean 354 more than 3 It means majority of

workers are satisfied and union is successful Employer has also confirmed their

efforts except for time decrease and leaves increase

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

199

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

61110 ZTBL Union

In workers context the performance of union is satisfactory with satisfaction

level mean 345 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts

In employerrsquos context the performance of union is satisfactory for all the

variables and as a whole performance of ZTBL union is satisfactory with 400 value of

weighted mean of satisfaction level of all the variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

612 Variable-Wise Performance of Unions

How unions have been exerting efforts for workers benefits has been enquired

from workers and responses of workers analyzed by obtaining their weighted

lsquoarithmetic meanrsquo in tables 21 to 35 and by applying lsquochi squarersquo in tables 37 to 51

Because one point of the lsquoExisting Problemrsquo was that unionsrsquo membership is declining

and it was assumed that this might be because unions are not exerting efforts for

securing benefits or protecting interest of workers

Similarly how unions have been exerting efforts for employerrsquos interest have

been enquired from employers and analyzed their responses by obtaining their

arithmetic mean in tables 52 and 53 Because other point of the lsquoExisting Problemrsquo

was that unions only talk about workers rights and ignore their obligations are

responsible for low productivity and it was assumed that it might be because unions

are not exerting efforts for exhorting workers for taking care of employersrsquo interest

200

6121 Workers relating variables

Wage Rise Over all sample mean of the satisfaction level of workersrsquo responses is

340 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for wage rise

Efforts of unions for wage rise can be estimated from this fact that at time of survey

(December 2006) minimum wage was Rupees 4000 but more than 324952

workers were earning wages between Rupees 5000 and 10000 and more than 4952

between 10000 and 20000 and 118 percent were getting wages even more than rupees

20000 (Appendix C-3) Rise in wages was 15 to 35 except of KTM (see

Appendix C-1) This is really an achievement at the part of labor unions

Fringe Benefits Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 333 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

securing fringe benefits of workers Except PCP workers of all other organizations are

getting bonuses and in some organizations bonuses are two or more ARL paid 5 and

KTM has paid 4 bonuses in previous charter (Appendix C-1) ARL KTM and

OGDCL pay 5 percent of their profit to workers and KTM besides this also make

payment to social security and 5 percent of workers salary to Employees Old Age

Benefit department (Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Job Security Over all sample Mean of the Satisfaction Level of workersrsquo responses is

379 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for Job Security

of workers Employees of all the organizations under study are enjoying job security

due to unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts

of unions for job security only 41 workers were unsatisfied (Table23)

Time Reduction Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 354 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

reduction in daily duty hours or resisting the increase of working hours by employer

201

Only one organization KTM has 48 working hours per week at the rate of 8 hours per

day Two organizations ARL and PCP have 40 working hours per week and other

seven organizations have weekly working hours less than 40 (Appendix C-2) This

time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation On unionsrsquo efforts for time decrease

324 respondents expressed satisfaction and only 43 workers expresses un-satisfaction

(Table-24)

Health Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 360 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

Health facilities for workers All the organizations are providing medical treatment

facilities to their workers (Appendix C-2) and 360 workers expressed their satisfaction

as compared to 72 un-satisfied workers (Table-25)

Children Education Over all sample Mean of the Satisfaction Level of workersrsquo

response is 302 which is minutely more than indifferent level (ie 3) Chi square test

for this is significant resulting that unions as a whole have been exerting efforts for

children education facilities for workers but performance of unions of five

organizations is not satisfactory and they need to improve their efforts in this regard

The satisfied workers 133 and unsatisfied workers 131 are almost equal with 261

indifferent workers on this facility which shows that unions need to put more efforts

for this facility (Table-26)

Over Time Payment Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 330 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

payment of overtime if workers work more than duty hours On unionsrsquo efforts 248

were satisfied as compared to 96 workers while 181 workers were indifferent (Table-

27)

Working Conditions Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 372 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for better

202

working conditions On unionsrsquo efforts 376 workers were satisfied as compared to 43

un-satisfied workers (Table-28) It means unions have really exerted efforts for

working conditions

Leave Facility Over all sample Mean of the Satisfaction Level of workersrsquo responses

is 353 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for increasing

yearly leaves or resisting against the decrease of yearly leaves of workers Annual paid

leaves for seven organizations are 68 and for IESCO are 73 where as only for two

organizations are 40 This is a reasonable time for rest and enjoyment On unionsrsquo

efforts 321 workers were satisfied as compared to 42 un-satisfied workers which

shows that unions have really exerted efforts for exacting this facility (Table-29)

Post Retirement benefits (Pension) Over all sample Mean of the Satisfaction Level

of workersrsquo responses is 313 which is more than indifferent level (ie 3) Chi square

test for this is also significant resulting that unions as a whole have been exerting

efforts for Post retirement benefits for workers The Mean of satisfaction level of

workers for unionsrsquo efforts for this variable is hardly more than 3 so unions need to

improve their efforts in this regard The satisfied workers are 183 but unsatisfied

workers 129 are also not less while 213 workers are indifferent which shows that

unions need to put more efforts for this facility (Table-30)

Recreational Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 303 which is hardly more than indifferent level (ie 3) Chi square test

for this is also significant resulting that unions as a whole have been exerting efforts

for recreational facilities The Mean of satisfaction level of workers for unionsrsquo efforts

for this variable is hardly more than 3 so unions need to improve their efforts in this

regard The satisfied workers are 116 but unsatisfied workers 138 while 271 workers

are indifferent which shows that unions need to put more efforts for this facility

(Table-31) The mean being more than 3 is due to the fact that 36 workers were very

satisfied which put more weight in satisfaction side

Training Opportunities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 301 which is hardly more than indifferent level (ie 3) Chi square test

203

for this is resulting that unions as a whole have been exerting efforts for training

opportunities for workers The Mean of satisfaction level of workers for unionsrsquo

efforts for this variable is hardly more than 3 so unions need to improve their efforts in

this regard The satisfied workers 141 and unsatisfied workers 138 are almost equal

with 246 indifferent workers showing that unions need to put more efforts for this

facility (Table-32) The mean being more than 3 is due to the fact that 246 workers

were indifferent which put more weight in satisfaction side

Decreasing Workers Officers Wage gap Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 301 which is hardly more than indifferent level (ie

3) Chi square test for this is also significant resulting that unions as a whole have

been exerting efforts for decreasing gap of workers and officersrsquo wages The Mean of

satisfaction level of workers for unionsrsquo efforts for this variable is hardly more than 3

so unions need to improve their efforts in this regard The satisfied workers 144 are

slightly less than 150 unsatisfied workers with 231 workers indifferent (Table-33)

The mean touching to indifferent level is due to the fact that 13 responses are of very

satisfied This demands that unions need to put more efforts for exacting this facility

Information (Awareness) about Rights Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 344 which is more than indifferent level (ie 3) Chi

square test for this is also significant proving that unions as a whole have been

exerting efforts for awareness of workers about their rights On unionsrsquo efforts 304

workers were satisfied as compared to 79 un-satisfied workers which shows that

unions have really exerted efforts for exacting this facility (Table-34)

Workersrsquo Education Collective Mean of the Satisfaction Level of workers

responsesrsquo is 331 which is more than indifferent level (ie 3) Chi Square test for this

is also significant proving that unions as a whole have been exerting efforts for

arranging workers education On unionsrsquo efforts 234 workers were satisfied as

compared to 73 un-satisfied workers with 218 indifferent responses which shows that

unions have really exerted efforts for exacting this facility (Table-35) though there is

need of more efforts

204

The Combined Mean of satisfaction level of workers on efforts of unions for

securing benefits for them or protecting their rights is 334 (SW = 334) and Chi square

tests for all variables are also significant acknowledging the exertion of unionsrsquo efforts

for workersrsquo benefits

Hypotheses from H1 to H15 for all the variables have been rejected and

alternate view has been established This proves that unions as a whole have satisfied

their workers and they are successful in this respect

6122 Employer relating variables

Productivity Increase or Efficiency Improvement Over all sample Mean of the

Satisfaction Level of employersrsquo responses is 330 which is more than indifferent level

(ie 3) proving that unions as a whole have been exerting efforts by exhorting

workers for productivity increase performance or efficiency improvement of the

workers of the organizations Except employer of IESCO KTM and ZTBL employers

of other organizations are indifferent with union performance So these unions need to

improve the efforts in this respect

Work Place Harmony Over all sample Mean of the Satisfaction Level of employersrsquo

responses is 400 which is more than indifferent level (ie 3) proving that unions as a

whole have been exerting efforts for improvement of workplace peace and harmony of

the organization Only the management of PTCL was indifferent with union

performance So this union needs to improve the efforts in this respect

The Combined Mean of satisfaction level of employers on efforts of unions for

securing benefits for them is 365 (Se = 365 More than 50 percent workers also

confirmed that unions have been exerting efforts by exhorting and motivating them for

improving performance (increase of productivity and efficiency) and workplace

harmony It has also been confirmed by workers (see YES responses of respective

variables in column 2 of table in appendices F-1 to F10) The Hypotheses 16 and 17

have been rejected This proves that unions as a whole have satisfied the employers

and this is success of unions

205

613 Comparison with Non-Unionized Workers

All the benefits secured by unions for their workers were not enjoyed by

temporary workers (comparison of facilities in tables 55 amp 56) and if they are availing

a facility or favor they admitted that it is because of unions struggle for them such as

medical treatment or bonus facility in some organizations

Besides this ninety six percent of workers replied that unions are necessary for

organizations for watching the interest of workers and obtaining benefits for them

(Question 18 of the questionnaire 2 and table 57)

However unions have some weakness at their parts and unions could not play a

beneficial role in obtaining some facilities such as

1 Education facilities for the children of workers in the form of Education

allowance Scholarships or establishment of quality schools Mean of

satisfaction of workers on unionsrsquo struggle for this facility is 302 which is

marginally above the required level and unions need much to do in this regard

2 Post retirement benefits amp Pension Mean of satisfaction of workers on unionsrsquo

struggle for this facility is 313 which is slightly above the required level

showing that satisfaction level mean is not good and unions need to put more

efforts in this respect

3 Recreation facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility is 303 which is marginally above the required level and unions are

required to exert more efforts for this

4 Training facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility was 301 which is poorly above the required level Training is of vital

importance for HRD so unions need to put more efforts for this

5 In struggle for decreasing officers workers wage gap the Mean of satisfaction

of workers on unionsrsquo struggle for this facility is 301 which is marginally

above the required level and requires more struggle

206

Unions no doubt as a whole were marginally successful in arranging four out

of fifteen facilities ie Education facilities for children of workers Recreation

facilities Training opportunities and Decreasing gap between officers salaries and

workers wages even though few unions were successful in securing these facilities as

well but unions collectively remained very successful in wining other eleven facilities

and as a whole the mean of all fifteen facilities is 334 Values of Chi Squires of all the

variables were significant compelling to accept alternate hypothesis which is other

name of significant unionsrsquo role for exerting efforts to secure workers benefits and

playing a positive role in HRD It means unions did arrange many facilities for

workers and when it is compared with temporary workers who were not getting these

facilities and benefits and if they could avail some benefits even these are because of

unionsrsquo efforts or unionsrsquo Therefore Declining in membership is not because of

unionsrsquo failure so causes of unionsrsquo membership decline are to be sought somewhere

else

Unionsrsquo role for serving the purpose of employers is also very significant as

the combine mean of all variable showing employers interest is 365 above the union

tolerable level of 300 So unions are playing a positive role for workers benefits as

well as for employers benefit and have built positive industrial relations

Ninety six percent workers commented that unions are necessary for them it is

to be admitted that unions are necessary for organizations However 86 workers

expressed their unhappiness on inter union rivalry rendering them weak because 81

workers were of the opinion that present unions became weaker than unions in the past

decade so they should get rid of this weakening vice

As a consequence of information obtained as responses from workers and

management of the sampled organizations and above detailed discussion the opinion

that was developed in chapter one (in the paragraph of Existing Problem) ie cause of

membership decline might be unions are not exerting efforts for securing facilities

and benefits for workers and the allegation that unions only talk about workers rights

and ignore responsibilities and largely responsible for low productivity now has

changed to new opinion that unions

207

1 Exert efforts for securing benefit for their workers

2 Do talk about workersrsquo rights but do not ignore their obligations

3 Motivate the workers for increase of productivity efficiency as acknowledged

by management with satisfaction level mean 32

4 Do struggle to improve work place harmony (managementsrsquo mean of

satisfaction level is 40) As they try to motivate workers to improve work

place harmony so they do not interfere in the administration and smooth

working at the workplace

Analysis of data and discussion also gave answers of research questions

62 ANSWERS OF RESEARCH QUESTIONS

1 To much extent the unions in Pakistan are effective in securing benefits and

facilities for workers like

i- Rise in wages salaries ranging from15 to 35 with satisfaction level

mean 34

ii- Fringe benefits such as bonus with satisfaction level mean 33

iii- Providing job security with satisfaction level mean 379

iv- Relief in working hours if not successful in time reduction but successful

in resisting increase of working hours with satisfaction level mean 354

v- Successful in procuring health facilities for workers with satisfaction

level mean of 360

vi- played marginal role in procuring educational facilities for children of

workers and the mean value of workers satisfaction on their struggle is

302 Unions need to improve their efforts in this respect

208

vii- Successful in procuring overtime facility with satisfaction level mean

330

viii- Successful in arranging good working conditions with workers

satisfaction level mean 372

ix- If not successful in Leaves increase but successful in resisting decrease of

leaves The satisfaction level of workers is 353

x- As whole slightly successful in procuring post retirement benefits for

their workers with workers satisfaction level mean of 313 and need to

put more efforts

xi- As a whole marginally successful in procuring recreational facilities for

their workers with workers satisfaction level mean of 303 Unions need

to exert more efforts

xii- As a whole marginally successful in procuring training opportunities for

their workers with workers satisfaction level mean of 301 Unions need

to exert more efforts

xiii- As whole were marginally successful in decreasing gap of workersrsquo

wages and officersrsquo salaries and workers satisfaction level mean is 301

Unions need to exert more efforts

xiv- Playing satisfactory role in giving the workers awareness about their

rights with workers satisfaction level mean of 344

xv- Unions also played satisfactory role in affording education facilities for

workers with satisfaction level mean 331

2- To much extent the unions in Pakistan are effective in protecting employersrsquo

interests by

i) Increasing productivity or improving efficiency of workers with

employersrsquo satisfaction level mean of 330

209

ii) Improving harmony at workplace with employersrsquo satisfaction level

mean of 400

63 CONCLUSION

By viewing results of data analysis and detailed discussions it is found that

unions under study have been proved successful in securing benefits for workers

which is apparent from satisfaction level of the workers with numeric value 334 at 5

point Likert scale Similarly it is also found that unions under study have exerted

efforts in protecting interest of employers which is apparent from satisfaction level of

the employers with numeric value of 365 at the same scale Though the performance

might have been very satisfactory if these averages were either 5 (which is ideal and

highest level of satisfaction) or near to five These are overall average result because

performance of some unions for some variables is not satisfactory Particularly

performance of unions in securing benefits like lsquochildren educationrsquo lsquorecreation

facilitiesrsquo lsquotraining opportunitiesrsquo and decreasing difference of remunerations (wages

and salaries) of workers and officers is not very appreciable and needs more efforts to

be done by unions As the scale for success is means of satisfaction levels more than

3 and both these combine means are greater than 3 so unionsrsquo overall performance is

satisfactory It has further been found that workers deem that presence of unions in the

organization is necessary which they expressed with 96 percent majority and inter

unions relations are needed to be improved because 86 percent workers opined that

inter union relations are not good Further more according to IRO 2002 work council

comprising representatives of both management and workers is necessary but

presently out of ten organizations studied work council exists only in three

organizations which is 30 percent of sample and unions are required to exert efforts to

establish work council in rest of 70 percent organizations

In the light of above lines it is concluded that Null Hypothesis is rejected and

alternate hypothesis is proved right that the unions are beneficial bodies for

organizations and ultimately for Human Resource Development Although there is

210

room for improvement in exerting efforts for securing benefits for workers as well as

for protecting employersrsquo interest and improvement of their inter unions relations

64 SUGGESTIONS AND RECOMMENDATIONS

Unions no doubt are playing a positive role in industrial relations for HRD

being successful in exacting benefits and facilities from employers for their workers

and are also protecting interests of employers by stressing workers to increase

productivity improve discipline enhancing workplace peace and harmony and

keeping good attitude with employer or management But still there are weak areas

where more efforts are needed so they should

1- Exert efforts to exact better facilities for education of workersrsquo children

2- Exert efforts to arrange training opportunities for workers to build their

skill which will make them more productive workers for the

organization and also cause to increase their remuneration

3- Exert efforts to arrange recreational facilities for workers Where these

facilities are available need improvement and where these are not

available are needed to be demanded by respective unions and arranged

by managementemployers in the form of Recreation allowances

Entertainment allowance Sports clubs Picnic parties etc

4- Unions should arrange training for office bearers from some agency to

have better know how of handling labor affairs and workersrsquo problems

5- When overall performance of unions is viewed unions claim the exertion

of efforts for every benefit (appendices F-1 to F-10 column 9) whereas

mean value of satisfaction level of workers is 34 So unions should

improve by exerting more efforts so that workers may be more satisfied

6- When overall performance of unions is viewed unions claim for exerting

efforts for benefits of employers (column 9 of tables in appendices F-1 to

F-10) whereas mean value of satisfaction level of employers is 365

211

Unions should improve by exerting more efforts so that satisfaction level

of employers may be very satisfied

7- Eighty six percent workers commented that intra organizational unions

are rivals to each other So unions should cooperate to each other if

unions are more than one in the organization Their rivalry harms them

and also to workers cause

8- Unions of today are weaker than unions a decade ago No doubt one

reason as workers told during interviews for this is non-democratic

regime but inter unions rivalry is also a reason for this so unions should

co-operate to each other in struggle for workers cause

9- Office bearers of four unions were not trained by any agency as unionists

to handle unionsrsquo matters Therefore Ministry of Labor amp man Power

should arrange training through any agency like (ILO NILAT) so that

they may be proved better unionist

10- There are Work Councils in only three organizations where as it is a legal

obligation according to section 24 of IRO 2002 Therefore unions should

demand and Government of Pakistan should arrange to form Work

Councils for prompt solution of workers problems

11- Unions sign charter of demand but intervals are different either 2 or

3years and of CDA union are not regular Unions and Employers should

sign charter of demand with regular intervals and this interval should be

two years

212

65 SUGGESTIONS FOR FURTHER RESEARCH

It is neither necessary nor easy that a research can determine causes of all the

problems or can explore all the aspects of a problem or can seek the solutions of a

problem for ever So any research can not be a final or comprehensive and there is

always need to explore better solutions of a problem or other facets of any discovery

Therefore researcher feels and admits that much work is to be done in presently

researched area In this regard for further researchers it is suggested to

1- Determine the causes of declining membership of labor unions in Pakistan

particularly in private sector after privatization

2- Determine the role of labor unions in politics of the country and in

movement of freedom of Pakistan

3- Explore the role of legislation and labor judiciary in providing relief to

labor unions or employers in the matter of conflicts

4- Enquire the social role of labor unions in solving social problems of

workers beyond collective bargaining

5- Estimate the role of labor unions in smaller industries or establishments in

solving the problems of workers by securing financial and non financial

benefits for workers

6- Search the affects of privatizations on the strength and activities of unions

in Pakistan

7- Explore the affects of globalization on the unionization unionsrsquo activities

and workers

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zutavern pdf

229

APPINDICES

Appendix A-1

Workers by Designation of ARL

Designation Number Of Workers Interviewed

Supervisor 1

Driver 4

Photographer 1

Personal Assistant 1

Petrol Pump Operator 2

Sign Board Writer 1

Senior Fitter 3

Senior Gas Fitter 2

Fitter 4

Pump Operator 4

Plant Operator 7

Total 30

230

Appendix A-2

Workers by Designation of CDA

Designation No of Workers Interviewed

Helper 10

Firemen 10

Cook 2

Work Supervisor 1

Beldar 8

Mali (Gardner) 3

Guage Reader 1

Frash (Sweepers) 5

Security Guard 5

Mate 4

Electrician 2

UpperLower Div Clerk 8

Assistant 2

Forest Guard 4

Driver 2

Telephone Operator 1

Sub Engineer 1

Draftsman 1

Total 70

231

Appendix A-3

Workers by Designation of IESCO

Designation No of Workers

Interviewed

Assistant Sub Station Attendant 8

Security Guard 2

Assistant Line Man amp Line Man 19

Computer Operator 2

Meter Reader 4

Driver 2

Line Superintendent 4

Assistant Foreman 2

Sub Station Operator 8

Guard 2

Commercial Assistant 4

Upper Division Clerk 2

Naib Qasid 8

Draftsman 1

Safety Inspector 2

Total 70

232

Appendix A-4

Workers by Designation KTM

Designation No of Workers

Interviewed

Assistant Operator 2

Checker 2

Assistant Fitter 2

4-C- Sider 2

Pifcer 2

8-C-Sider 4

Electritian 2

Power House Operator 1

Ring Operator 10

Plant Operator 2

Helper 6

Total 35

233

Appendix A-5

Workers by Designation of OGDCL

Designation No of Workers Interviewed

Helper 15

Driver 4

Lower Division Clerk 4

Lift Operator 2

Engine Driver 4

Auto Electrician 1

Dispatcher 4

Supervisor 2

Store Assistant 2

Admin Assistant 4

Procurement Assistant 4

Naib Qasid 4

Total 50

234

Appendix A-6

Workers by Designation of PCP

Designation No of Workers Interviewed

Assistant 2

Store Keeper 2

Computer Operator 6

Proof Reader 3

Copy Holder 4

Steno Grapher 2

Typist 4

Machine Man 7

Lower Division Clerk 5

Upper Division Clerk 5

Security Guard 4

Naib Qasid 6

Total 50

235

Appendix A-7

Workers by Designation PTCL

Designation No of Workers Interviewed

Technician 14

Accounts Clerk 8

UDCLDC 8

Wireman 2

Lineman 15

Key Punch Operator (KPO) 8

Assistant 3

Naib Qasid 6

Walk Messenger 2

Plumber 2

Teleprinter Printer 2

Total 70

236

Appendix A-8

Workers by Designation PTV

Designation No of Workers Interviewed

Store Assistant 4

Driver 4

Electrician 5

Admin Assistant 4

Accounts Assistant 4

Producer 3

Publishing Machine Operator 2

Typist 4

Dispatch Rider 4

Stenographer 2

Camera Man 4

Sanitary Worker 4

Naib Qasid 6

Total 50

237

Appendix A-9

Workers by Designation of SNGPL

Designation No of Workers Interviewed

Associate Engineer 2

Supervisor Admin Cash Billing Revision

Sales Fittier

12

Typist 3

Record Keeper 3

Drivers 4

Meter Mechanic 4

Fitter 4

UDC LDC 4

Meter Readers 6

Helpers 6

Tracers 2

Total 50

238

Appendix A-10

Workers by Designation of ZTBL

Designation No of Workers Interviewed

Naib Qasid 14

Assistant 18

Cashier 4

Typist 6

StenographersSecretary 6

TelephoneOperator 2

Total 50

239

Appendix A-11

Representatives of Unions and Employers Interviewed

Organization Employersrsquo

Representative

Unionsrsquo

Representative

ARL Manager Human Resource General Secretary

CDA Deputy Director

Administration amp Labor

President

IESCO Manager Human Resource General Secretary

KTM Manager Human Resource General Secretary

OGDCL Manager Human Resource General Secretary

PCP Manager Human Resource President

PTCL General Manager Human

Resource

General Secretary

PTV Controller Administration

amp personnel

President

SNGPL Manager Human Resource General Secretary

ZTBL SVP amp Head H R amp

Operations Division

General Secretary

240

Appendix - B-1

Workers by EstablishmentPlace of Posting Interviewed ARL

Name Of Office Site Or Establishment Number Of Persons

Administrative Offices 4

Main Factory 20

Parking and petrol pump 6

Total 30

241

Appendix B-2

Workers by EstablishmentPlace of Posting Interviewed CDA

Name Of Office Site Or Establishment Number Of Persons

Environment Directorate 14

Sanitation Directorate 14

Administration Directorate 14

Enforcement Directorate 14

Revenue Directorate 14

Total 70

242

Appendix B-3

Workers by EstablishmentPlace of Posting Interviewed IESCO

Name Of Office Site Or Establishment Number Of Persons

Head Office Islamabad 6

Executive Engineer Office G-7 Islamabad 4

Executive Engineer Office Rawalpindi

Cantt

5

SDO Office Islamabad 10

SDO Office Rawalpindi Cantt 10

Grid Station Chishtia Abad Rawalpindi 5

Grid Station Zero Point Islamabad 5

Grid Station I-9 Islamabad 5

Grid Station H-11 Islamabad 5

Customer Service Centre Islamabad 5

Complaint Office Islamabad 5

Executive Engineer Office I-9 Islamabad 5

Total 70

243

Appendix - B-4

Workers by EstablishmentPlace of Posting Interviewed KTM

Establishment Place Number of Workers

Main Factory 32

Power House 3

Total 35

244

Appendix B-5

Workers by EstablishmentPlace of Posting Interviewed OGDCL

Name of Office Site or Establishment Number of Persons

Procurement Deptt 4

Administration Deptt 4

Engineering Deptt 4

Survey Deptt 4

Marketing Deptt 4

Stores ndashI9 Deptt 3

Training (OGTI) 1

Jand Oil Field 4

Loti Oil Field 4

Rahim Yar Khan Oil Field 4

Chaknaurang Oil Field 4

Lkot Satang Oil Field 4

Einkasar Oilfield 4

Service Station 2

Total 50

245

Appendix B-6

Workers by EstablishmentPlace of Posting Interviewed PCP

Name of Office Site or Establishment Number of Persons

Head Quarter PCP Islamabad 21

PCP Press Islamabad 29

Total 50

246

Appendix B-7

Workers by EstablishmentPlace of Posting Interviewed PTCL

Name of Office Site or Establishment Number of Persons

PTCL Head Quarter G-8 Islamabad 10

DE Office F-8 Islamabad 7

DE Office Westridge Rawalpindi 7

DE Office Cantt Rawalpindi 7

Telephone Exchange Westridge Rawalpindi 6

Telephone Exchange Cantt Rawalpindi 7

DE Office Satellite Town Rawalpindi 2

Revenue Office Rawalpindi 7

Civil Maintenance Office Rawalpindi 2

Customer Services Centre Rawalpindi 2

Customer Services Centre G-9 Islamabad 2

Customer Services Centre Zero Point Islamabad 5

Telephone Exchange F-8 Islamabad 6

Total 70

247

Appendix B-8

Workers by EstablishmentPlace of Posting Interviewed PTV

Name of Office Site or Establishment Number of Persons

Head Quarter Administration Offices 11

Ptv Head Qurter Telecasting 30

Ptv-1 Etv 9

Total 50

248

Appendix B-9

Workers by EstablishmentPlace of Posting Interviewed SNGPL

Name of Office Site or Establishment Number of Persons

Construction Department 7

Connection Department 7

Meter Reading Department 7

Billing Department 8

Sales Department 7

Recovery Department 7

Administration Department 7

Total 50

249

Appendix B-10

Workers by EstablishmentPlace of Posting Interviewed ZTBL

Name of Office Site or Establishment Number of Persons

Credit Division 6

Law Division 6

Recovery Division 6

General Services Division 6

Human Resource Division 6

Audit Division 6

Zonal Office 4

Zero Point Branch 4

G- 7 Branch 4

Sensa Branch 2

Total 50

250

Appendix C-1

Financial Benefits of Workers (by Unionsrsquo Efforts)

W-rise Percentage Number of

Bonuses

Other Allowances

Org

Name

Previous

Charter

Present

Charter

Previous

Charter

Present

Charter

ARL 22 18 5 41 5 of profit also paid to workers

CDA 20 20 2 22 Talwar All Dress All Washing All

IESCO 15 15 - - Hardship All and free electricity2

KTM - - 4 13 -5 of profit paid to workers

-Employer contributes Equivalent to

5 of salary to Employees Old Age

Benefit Institute

- Employer contributes Equivalent to

5 of salary to Social Security

OGDCL 191

20 2 24 Field Allowance for field staff amp 5

of profit to workers

PCP 15 15 - - Tea Allowance Capital Allowance

Night Allowance

PTCL - 35 1 15

PTV 25 25 1 1 Technical Allowance Heavy Duty

Allowance etc

SNGPL 15 15 2 2 Recreation All Half basic

ZTBL 15 15 2 2 Interest free loans

251

1- 4 four bonuses are compulsorily paid but more than are depending on profit

2- Tow bonuses are paid every year on Eid occasion and every bonus is of Rs

2000 only

3- In KTM profit decreased because of crisis in textile sector so bonus reduced to

one

4- Two bonuses are compulsory and if there is discovery in the year then

discovery bonus is also paid and called Discovery Award

5- In PTCL one Bonus is paid every year In 2005 bonus amount was Rs 16000

but in 2006 it reduced to Rs 9000 only and union filed a suit in NIRC for this

reduction

252

Appendix C-2

Non Financial Facilities of Workers (by Union Efforts)

OrganizAtion

Name

J-sec Hours

week

Annual Leaves Others

ARL Yes 40 40 Cheapest canteen

Medical Treatment

CDA Yes 39 68 Plots

Medical Treatment

IESCO Yes 375 73 Free Electricity

Medical Treatment

KTM Yes 48 40 Free House Free Gas

Free Electricity

Medical Treatment

OGDCL Yes 385 68 Recreation Clubs

Medical Treatment

PCP Yes 40 68 Medical Treatment

PTCL Yes 41 68 Call of 200 units free

Medical Treatment

PTV Yes 365 68 Medical Treatment

SNGPL Yes 39 68 Medical Treatment

ZTBL Yes 39 68 Medical Treatment

253

Appendix C-3

Monthly Wages of Workers (on December 31 2006)

Name of Org

Less Than Rs

4000-

Rs4000- to Rs 5000-

5000- To

10000

10001 to

15000-

15001 to

20000-

20001 to

25000

Above Rs

25000-

Total

ARL - - - 25 3 2 - 30

CDA - 6 52 12 - - - 70

IESCO - 2 36 28 4 - - 70

KTM - 20 13 2 - - - 35

OGDC - - 15 14 5 14 2 50

PCP - 2 36 12 - - - 50

PTCL - - 8 32 28 2 - 70

PTV - - 5 7 15 5 18 50

SNGPL - - - 19 18 9 4 50

ZTBL - - 8 20 16 4 2 50

Total - 30 173 171 89 36 26 525

Percentag

e

0 571 3296 3257 1695 686 495 100

Up to Rs 10000- 3867

From 10000 to 20000- 4952

Above Rs 20000 1181

254

Appendix D-1

Nature of Sampled Organizations

S

No

Name of

Organization

Organization

ActivityBusiness

Nature

Legal Status

Owned Controled

by

1 Attock Refinery Ltd

(ARL)

Oil Refining Public Limited Private

2 Capital Development

Authority (CDA)

Town Planning

City Municipal

Services

Government

Autonomous Body

Government of

Pakistan

3 Islamabad Electric

Supply Company

(IESCO)

Electric Power

Supply

Government

Autonomous Body

Government of

Pakistan

4 Koh-i-Noor Textile

Mills Ltd

Textile

Manufacturing

Public Limited Private

5 Oil amp Gas

Development

Corporation Ltd

(OGDCL)

Oil amp Gas

Exploration and

extraction

Semi Government

Autonomous Body

Government of

Pakistan

6 Printing Corporation

of Pakistan (PCP)

Printing and

Publication

Government

Autonomous Body

Government of

Pakistan

7 Pakistan

Telecommunication

Corporation Ltd

(PTCL)

Telephone Services Public Limited Private

8 Pakistan Television

Corporation

Telecasting

Information

Government

Autonomous Body

Government of

Pakistan

9 Sui Northern Gas Pipe

Line Ltd (SNGPL)

Natural Gas Supply Semi Government

Autonomous Body

Government of

Pakistan

10 Zari Tarraqiati Bank

Ltd (ZTBL)

Banking Government

Autonomous Body

Government of

Pakistan

255

Appendix D-2

Sampling Detail

S No

Name of

Organization

Total

Unions

Total

Permanent

Workers

Permanent

Workers

Sampled

Total

Temporary

Workers

Temporary

Workers

Sampled

1 (ARL) 1 438

30 157 10

2 (CDA) 3 14000

70 1300 10

3 (IESCO) 2 12700

70 854 10

4 (KTM) 2 1940

35 1655 10

5 (OGDCL) 2 9338

50 752 10

6 (PCP) 1 545

50 - -

7 (PTCL) 4 59700

70 2430 10

8 (PTV) 2 870

50 365 10

9 (SNGPL) 2 7600

50 610 10

10 (ZTBL) 1 2520

50 325 10

Total 20 109661

525 8448 90

256

Appendix E-1

Abbreviations for Words Used in Analysis Tables

Abbreviation Explanation

FREQ or Freq Frequency

IND Indifferent

ORG Organization

RES Respondents

S Satisfied

US Un-satisfied

UN Union

VAR Variables

VS Very Satisfied

VUS Very Un-satisfied

WT or Wt Weight or weighted

Y YES

N NO

Σ Sum Total

257

Appendix E- 2

List and Codes of Variables Used

Name of Variable Code of

Variable

Type of

Variable

Variable

Pertaining to

Success of Union Su Dependent Union

Satisfaction of Workers Sw Mediating Workers

EmployersManagement Satisfaction Se Mediating Employers

Management

Wag-Rise Wris Independent Workers

Financial Benefits (bonus) Fbft Independent Workers

WorkerOfficer Wage Salary Difference

Reduction

Wdf Independent Workers

Job Security Jsec Independent Workers

Time Reduction Td Independent Workers

Leaves Increase Linc Independent Workers

Over Time Ot Independent Workers

Working Conditions Wcon Independent Workers

Health Facility Hfac Independent Workers

Children Education Ced Independent Workers

Post retirement Benefits Pension Prb Independent Workers

Recreation Rfac Independent Workers

Training opportunities Top Independent Workers

Workers Education We Independent Workers

Workersrsquo Productivity Efficiency

performance improvement

Pin Independent Management

Work Place Harmony Wph Independent Management

Informing workers about Rights Ir Independent Workers

and mediating variables because act as independent as unionrsquos success depends

on them but they are further dependent on independent variables comprising

workersrsquo and employersrsquo responses respectively

258

Appendix ndash F-1

Responses of Union Workers and Management of ARL

(Attock Refinery Limited)

Respon dents

Workers Union

Manage-ment

VAR

YES NO VS

S

IND

US

VUS

UN RES

MGT RES

WT

Wris 30 - 2 20 8 - - Y Y -

Fbft 28 2 8 16 4 2 - Y Y -

Jsec 30 - 8 18 4 - - Y Y -

Td 4 26 16 14 - - Y Y -

Linc 26 4 24 6 - - Y Y -

Ot 26 4 20 10 - - Y Y -

Wcon 30 4 22 4 - - Y Y -

Hfac 30 - 20 6 4 Y Y -

Ced 22 8 2 14 10 4 Y Y -

Prb 8 22 - 2 14 14 Y Y -

Rfac 12 18 2 10 8 10 Y Y -

Top 10 20 18 8 4 Y Y -

We 16 14 12 14 4 Y Y -

Wdf 18 12 6 8 12 4 Y Y -

Ir 24 6 16 12 2 Y - -

Pin 26 4 Y IND 3

Wph 28 2 Y S 4

259

Appendix ndash F-2

Responses of Union Workers and Management of CDA

(Capital Development Authority)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGE RES

WT

Wris 44 26 40 14 16 Y Y -

Fbft 70 62 6 2 Y Y -

Jsec 54 16 48 18 4 Y Y -

Td 23 47 36 32 2 - Y N -

Linc 23 47 35 33 2 Y N -

Ot 36 34 30 32 8 Y Y -

Wcon 46 24 30 28 12 Y Y -

Hfac 44 26 40 14 16 Y Y -

Ced 18 52 13 48 09 Y Y -

Prb 64 6 14 50 6 0 Y Y -

Rfac 4 66 58 12 Y N -

Top 12 58 10 20 40 Y Y -

We 44 26 28 34 8 Y N -

Wdf 28 42 28 28 14 Y Y -

Ir 56 14 54 10 6 Y - -

Pin 36 34 Y IND 3

Wph 55 15 Y S 4

260

Appendix ndash F-3

Responses of Union Workers and Management of IESCO (Islamabad Electric Supply Company)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 53 17 - 26 22 22 - Y Y -

Fbft 8 62 2 12 56 - Y N -

Jsec 59 11 7 40 13 10 - Y Y -

Td 52 18 - 40 23 7 - Y Y -

Linc 50 20 - 40 25 5 - Y N -

Ot 54 16 36 20 14 - Y Y

Wcon 56 14 50 10 10 - Y Y -

Hfac 52 18 26 24 20 - Y Y -

Ced 29 41 9 44 17 - Y Y -

Prb 16 54 4 46 20 - Y Y -

Rfac 17 53 47 23 - Y Y -

Top 27 43 22 34 14 - Y Y

We 43 27 - 36 24 10 - Y N -

Wdf 18 52 - 2 37 31 - Y N -

Ir 54 16 - 49 10 11 - Y - -

Pin 50 20 - Y S 4

Wph 57 13 - Y FS 5

261

Appendix ndash F-4

Responses of Union Workers and Management of KTM (Koh-i-Noor Textile Mills Limited)

Respondents

Workers Union Manage-ment

VAR YES NO VS S IND US

VUS

UN RES

MGT RES

WT

Wris 10 25 - 10 4 21 Y N -

Fbft 27 8 - 17 17 1 Y Y -

Jsec 20 15 - 15 10 10 Y Y -

Td - 35 - 13 13 9 Y N -

Linc - 35 - 10 16 9 Y N -

Ot 16 19 - 12 15 8 Y N -

Wcon 30 5 - 30 5 - Y Y -

Hfac 31 4 6 25 4 - Y Y -

Ced 35 4 20 11 - Y Y -

Prb 22 13 - 17 10 8 Y - -

Rfac 19 16 - 16 10 9 Y N -

Top 35 22 13 Y N -

We 17 18 12 17 6 Y Y -

Wdf 2 33 2 7 26 Y N -

Ir 25 10 20 12 3 Y -- -

Pin 19 16 Y S 4

Wph 29 6 Y S 4

262

Appendix ndash F-5

Responses of Union Workers and Managementof OGDC (Oil and Gas Development Company Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 35 15 - - Y Y -

Fbft 46 4 2 34 10 4 - Y Y -

Jsec 50 - - 45 5 - - Y Y -

Td 50 - - 40 10 - - Y Y -

Linc 45 5 - 40 10 - - Y Y -

Ot 28 22 - 22 16 12 - Y Y -

Wcon 43 7 4 33 10 3 - Y Y -

Hfac 50 - 17 28 5 - - Y Y -

Ced 22 28 - 8 36 06 - Y Y -

Prb 29 21 - 27 13 10 - Y Y- -

Rfac 37 13 18 14 14 4 - Y Y -

Top 27 23 4 19 20 7 - Y Y -

We 30 20 - 21 19 10 - Y N -

Wdf 34 16 5 26 14 5 - Y Y -

Ir 46 4 - 34 12 4 - Y - -

Pin 39 11 - Y IND 3

Wph 45 5 - Y S 4

263

Appendix ndash F-6

Responses of Union Workers and Management of PCP (Printing Corporation of Pakistan)

Respon

dents

Workers Union Manage-

ment

VAR YES NO VS S IND US V

US

UN

RES

Mgt

Res

Valu

e

Wris 44 6 37 4 9 Y Y -

Fbft 44 6 33 8 9 Y Y -

Jsec 47 3 4 40 4 2 Y Y -

Td 50 40 4 6 Y Y -

Linc 50 38 7 5 Y Y -

Ot 45 5 37 9 4 Y Y -

Wcon 41 9 39 6 5 Y Y -

Hfac 42 8 40 5 5 Y Y -

Ced 11 39 11 16 23 Y N -

Prb 33 17 5 30 15 Y Y -

Rfac - 50 30 20 Y N -

Top - 50 24 26 Y N -

We 26 24 30 20 Y N -

Wdf 5 45 5 37 8 Y N -

Ir 38 12 20 21 9 Y - -

Pin 41 9 Y IND 3

Wph 44 6 Y S 4

264

Appendix ndash F-7

Responses of Union Workers and Management of PTCL

(Pakistan Telecommunication Corporation Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO

VS S IND US VUS

UN RES

MGT RES

WT

Wris 56 14 28 18 24 - Y Y -

Fbft 42 28 14 16 40 Y Y -

Jsec 50 20 2 39 15 14 - Y Y -

Td 42 28 40 20 10 - Y Y -

Linc 40 30 36 24 10 - Y Y -

Ot 18 52 10 38 22 - Y Y -

Wcon 51 19 36 24 10 - Y Y -

Hfac 50 20 44 16 10 - Y Y -

Ced 34 36 11 32 27 - Y N -

Prb 24 46 4 44 22 - Y N -

Rfac 70 40 30 - Y N -

Top 26 44 16 40 14 - Y Y -

We 22 48 19 39 12 - Y N -

Wdf 14 56 32 38 - Y Y -

Ir 36 34 18 34 18 Y - -

Pin 34 36 - Y IND 3

Wph 40 30 - Y IND 3

265

Appendix ndash F-8

Responses of Union Workers and Management of PTV (Pakistan Television Corporation)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 45 5 6 26 14 4 Y Y -

Fbft 40 10 - 36 12 2 Y Y -

Jsec 48 2 7 39 3 1 Y Y -

Td 42 8 37 10 3 Y Y -

Linc 40 10 38 9 3 Y Y -

Ot 43 7 41 6 3 Y Y -

Wcon 44 6 39 11 Y Y -

Hfac 39 11 37 5 8 Y Y -

Ced 32 18 13 20 17 Y Y -

Prb 37 13 21 24 5 Y Y -

Rfac 12 38 10 34 6 Y N -

Top 16 34 16 24 10 Y Y -

We 39 11 33 8 9 Y Y -

Wdf 32 18 23 14 13 Y Y -

Ir 99 11 - 30 10 10 Y -

Pin 43 7 Y IND 3

Wph 47 3 Y YS 4

266

Appendix ndash F-9

Responses of Union Workers and Management of SNGPL (Sui Northern Gas Pipe Line Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 47 3 7 30 10 3 Y Y -

Fbft 47 3 5 30 12 3 Y Y -

Jsec 48 2 5 34 11 Y Y -

Td 44 6 34 16 Y N -

Linc 40 10 32 18 Y N -

Ot 44 6 3 21 23 3 Y Y -

Wcon 45 5 3 40 4 3 Y Y -

Hfac 39 11 4 34 10 2 Y Y -

Ced 11 39 6 22 22 Y Y -

Prb 46 4 37 8 5 Y Y -

Rfac 47 23 16 30 2 2 Y Y -

Top 15 35 10 34 6 Y Y -

We 22 28 15 25 10 Y Y -

Wdf 32 18 - 17 28 5 Y Y -

Ir 37 13 25 14 11 Y - -

Pin 39 11 Y IND 3

Wph 47 3 Y S 4

267

Appendix ndash F-10

Responses of Union Workers and Management of ZTBL (Zarhi Tarraqiatti Bank Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS

S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 32 14 4 - Y Y -

Fbft 42 8 28 14 8 - Y Y -

Jsec 50 - 26 20 4 - - Y Y -

Td 50 28 16 6 - Y Y -

Linc 50 28 14 8 Y Y -

Ot 36 14 16 12 22 - Y Y -

Wcon 45 5 32 14 4 - - Y Y -

Hfac 40 10 1 38 4 7 - Y Y -

Ced 28 22 22 22 6 - Y Y -

Prb 12 38 2 18 30 - Y Y -

Rfac 8 42 28 22 - Y Y -

Top 30 20 26 20 4 - Y Y -

We 32 18 28 18 4 - Y Y -

Wdf 30 20 2 20 22 6 - Y Y -

Ir 42 8 4 34 7 5 - Y - -

Pin 31 19 - Y S 4

Wph 40 10 - Y S 4

268

Appendix ndash F-11

Essentiality of Unions Inter Unions Relations and Unions Status as Compared to Past

(Workers Responses)

Questions

QNo 18 Is Union Essential in yourganization

QNo 19 Are Inter Union Relations Good in Your Organization

QNo 20 Are Unions of Today Weaker Than Unions ofthe Past

Name of Number of Number of Responses

Number of Responses

Number of Responses

Org Respo ndents

Unions in Org

Yes No Yes No Yes No

ARL) 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

269

Appendix ndash F-12

(Questionnaire-1 Question 18amp 19) About Work Council and Unionistsrsquo Training

(Union Office Bearersrsquo Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does union sign Charter of Demand

Q- 20 Have you been imparted training as unionrsquos office bearer by any agency

ARL YES Yes-after every three years Once by ARL in NILAT

and Once by PWF

CDA YES Yes-(interval not regular) Yes Once by ILO amp once

by APFOL

IESCO YES Yes-after every three years Yes- by our union

KTM NO Yes-after every three years Never

GDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Yes by WTO

PTCL NO Yes-after every three years Yes ndash by ILO

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Yes by NILAT

270

Appendix ndash F-13

About Charter of Demand and Wage Cut

(Management Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does Union Sign Charter of Demand

Q- 20 Did Union Accept Wage cut any Time

ARL YES Yes-after every three years Never

CDA YES Yes-(interval not regular) Never

IESCO YES Yes-after every three years Never

KTM NO Yes-after every three years Never

OGDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Never

PTCL NO Yes-after every three years Never

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Never

271

Appendix G-1

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR UNION OFFICE BEARERS-1

PERSONAL INFORMATION

Name of Company Institution ----------------------------Public Private

Name of office bearer----------------------------------------------------------

Designation---------------------

Nature of Duty------------------------------------------------------------------------------------

No of unions in organization--------------------Is Your Union ldquoCBArdquo---------- ------

Union registered with -----------Registrar------------NIRC------------

Name of your Union---------------------------------------Status in Union-----------------

Experience of union office in years-------------------Years of present status----------

UNION INFORMATION

1- Did Union exert efforts to Increase workers Wages ------ Yes-------- No------

If yes how much increased---------------------- In percentage---------------------------

Increase how many times-------------------After how long interval--------------------------

--

2- Did union exert efforts for Fringe Benefit of workers like Bonus Yes-- No----

272

If yes how much amount-------------------------- How many times a year-------------------

3 Did union exert efforts for workers Job Security ------ Yes-- No--

If yes then how----------------------------------------------------------------------------------

4- What are workersrsquo Duty Timings

Arrival time------------------------------Break--------------------- Leaving time --------------

Total Daily hours ------------ Weekly hours----------------- Weekly working days------

Did union exert efforts for reduction in workers duty hours------Yes-----No----------

If yes then how much time reduced--------per day----------------per week------------------

5- Did union exert efforts to increase workers Leaves--Yes No------

How---------------------------------------------------------------------------------------

6- Did union exert efforts for payment of Overtime for workers --- Yes No --

If yes then with these efforts are you

7 Did union exert efforts to improve Working Conditions and provide facilities

Yes------NO--------------

8- Did union exert efforts for Health care of workers ---- Yes No ---------

i- Arranged to establish Hospital-------------------------------------------------

ii- Arranged medical Allowance--------------------------------------------------

iii- Treatment Arrangements for family-------------------------------------------

iv- Treatment Arrangements for parents ----------------------------------------

v- Any other-------------------------------------------------------------------------

273

9- Did union exert efforts for Education of workersrsquo Children Yes--- No ---

i- Established School------------------------------------

ii- Arranged Scholarship--------------------------------

iii- Arranged Transport of School------------------------

iv- Provides education Allowance-----------------------

v- Any other Arrangement------------------------------

10- Did union exert efforts for Post Retirement Benefits of Workers Yes No----

i- Arranged pension facility-------------------------------

ii- Increase of pension amount-----------------------

iii- Any other----------------------------------------

If yes then with these efforts are you

11- Did union struggle to arrange Recreational Facilities for workers Yes No --

How Details -----------------------------------------------------------------------

With this are you

12- Did union struggle to arrange any Training for workers --- Yes No ----

If yes then how --------------------------------------------------------------------

13 Did union try to decrease workers officers Wagesalary differenceYes-- No--

14- Did union inform the workers about their Rights as worker --- Yes---- No --

If yes then how

15 Did union struggle to arrange Education Facility for workers --- Yes---- No --

----------------------------------------------------------------------------------------------------------

274

16- Did union exert efforts to Increase workers Productivity Performance

Yes-----No----------

17- Did union exert efforts to Increase workplace Peace Harmony --- YesNo

How-------------------------------------------------------------------------------------

18 Is there Work Council in the Organization to solve problems with negotiation

Yes-----No----------

How-------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20- Have you been imparted training as office bearers to conduct unionrsquos matters by

Any agency------------Yes------- No------Tell details---------------------------------

Was this training arranged by union------Yes No

275

Appendix G-2

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR WORKERS-2

Personal Data

Name of Company Institution ------------------------------------ Public ----Private----

Designation----------------- Service Length------- Age----------Education----------

Experience in present institution-------------------Total Experience---------------

Nature of Duty------------------------------------------------

Number of Unions in Institution-------- Are You Union member ----------

Since how many years ----------

Name of your Union------------------------------ Is Your Union ldquoCBArdquo ----------

Your Present Wage------------------------------------------------------------------------------

Basic Pay---------------------Allowances---------------------Total------------------------------

Union Data

1- Is There any Increase in Your Wage Due to Union ------ Yes--- No----

If Yes How Much----------------------------- In Percentage----------------------------

Increase How Many Times-------------------After How Long Interval---------------

With this Increase are you

276

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied-

2- Did Union Exert Efforts for any Fringe Benefit Like Bonus For Workers

Yes----No----

If Yes Amount------------------- -----------------How Many Times a Year------------

With these efforts are you

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied

3- Did Your Union Exert Efforts for Workers Job Security -----Yes ---No------

If yes then with these efforts are you

Fully Satisfied------Satisfied-------Indifferent-------Unsatisfied-------Fully Unsatisfied-----

4- What are Your Duty Timingshours

Arrival Time---------------------------Break------------------------ Leaving Time --------------------

Daily Hours --- --------- -----Weekly Hours -------------- Weekly Working Days-----------

Did Union Exert Efforts for Reduction in Working Hours----------Yes---------No--------

If Yes Then How Much Time Reduced---------Per Day-------------------Per Week-----------

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

5- Did Union Exert Efforts To Increase Workersrsquo Leaves

Yes ------No-----

If Yes then how many leaves Increased--------------------------------------------

With these efforts are you

277

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

6- Did union exert efforts for payment of overtime for worker Yes ------No-----

If yes then how-------------------------------------------------------------------------------

With these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

7 Did Union Exert Efforts To Improve Working Conditions --Yes ------No-----

With these efforts what is you over all satisfaction level

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

8 Did Union Exert Efforts For Health of Workers ---------Yes ----No-----

vi- Arranged to Establish a Hospital-------------------------------------------------

vii- Arranged Medical Allowance------------------------------------------------------

viii- How Much is Medical Allowance-------------------------------------------------

ix- Treatment Arrangements for Family---------------------------------------------

x- Treatment Arrangements for Parents -------------------------------------------

With These Efforts Are You

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

9- Did Union Exert Efforts for Education of Workers Children YesNo-----

vi- Established School---------------------------------------------- Yes ----No-----

vii- Arranged Scholarship------------------------------------------- Yes ----No----

278

viii- Arranged Transport Of School-------------------------------- Yes ----No-----

ix- Provides Education Allowance-------------------------------- Yes ----No-----

x- School Bus Arrangement--------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

10- Did Union Exert Efforts for Post Retirement Benefits of Workers ----YesNo

iv- Arranged Pension Facility------------------------------------- Yes ----No----

v- Increase of Pension Amount---------------------------------- Yes ----No----

vi- Any Other-------------------------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

11- Did Your Union Arrange Any Recreational Facilities -----Yes -----No------

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

12- Did You Ever Receive Any Training ---- ------------------------- Yes No ------

What sort of training ---------------------------------------------------------------------

Was This Training Because of Efforts of Union-------------------------------------

If Yes Then How --------------------------------------------------------------------------

Are you satisfied with this

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

13- Did Union Try to Decrease Wage Salary Difference of Officers and Workers

YesmdashNo--

If yes then with these efforts are you

279

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied-------Fully Unsatisfied---

14- Did Your Union Inform You about Your Rights As Worker Yes ----No--

If Yes Then How --------------------------------------------------------------------------

15- Did Your Union Arrange Any Education Facilitiesfor you ---Yes -----No-----

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied

16 Did Union Exert Efforts to Increase Workers ProductivityEfficiency

Yes -----No-----

If yes then with these efforts are you

17- Did Union Exert Efforts to Increase Workplace Peace Harmony Yes---No----

18 Is union necessary for workers in the organization Yes--------No-------

19 Do unions remain in mutual conflict if more than one Yes--------No-------

20 Are unions weak with compared to past Yes--------No-------

280

Appendix G-3

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3

Name of Company Institution ------------------------------------ Public Private

Name of Official (optional) -----------------------------------------------------------------

Designation---------------------------Service Length ----------------------------------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

UNION INFORMATIOM

No of Unions in Institutionhelliphellip Do you deal with registered Union unions--------

1 Is there any workersrsquo Wage Increase due to Unionrsquos efforts Yes-------No----

If yes how much------------------------------- In percentage----------------------

Increased how many times-------------------------After how long interval------------

2- Did union exert efforts for any Frinde benefit of workers like bonus Yes--

-----No-------

If yes how much amount---------------------- How many times a year------------

3- Did union demand for workers Job security -------Yes-----------No---------

281

4- What are workers duty timings

Arrival time----------------------------------Break--------------------- Leaving time ----

Total hours --------- Daily -----------Weekly---------Weekly working days--------

Did union demand for reduction in workers job hours---------------------------

If yes then how much time reduced------per day-----------------per week-------------

5- Did union demands to increase workersrsquo Leave ---- Yes------- No-------

6- Did union exert efforts for payment of overtime for workers ndashYes ----No ---

7- Did union demand to improve working conditions ---Yes---- No-------

8- For health of workers did union demand Yes---- No-------

xi- Arranged to establish a hospital--------------------------------------------

xii- Arranged medical Allowance of Amount--------------------------------

xiii- Treatment arrangements for family-------------------------------------

xiv- Treatment arrangements for parents ---------------------------------------

xv- Any other--------------------------------------------------------------------------

9- For Education of Workers Children did union demand to ----------------

xi- Establish School -----------------------------------------------------------------

xii- Arrange scholarship---------------------------------------------------------------

xiii- Arrange transport for school----------------------------------------------------

xiv- Provide Education Allowance---------------------------------------------------

xv- Any other Arrangement--------------------------------------------------------

Yes---- No-------

10- Did union demand for Post Retirement Benefits of Workers----------------

vii- Arranged pension facility---------------------------------------------------------

282

viii- Increase of pension amount--------------------------------------------------------

ix- Any other-----------------------------------------------------------------------------

Yes---- No-------

11- Did union demand to arrange any recreational facilities for workers---------

Yes---- No-------

12 Did union demand for any training of workers ------------------------------

Any Comment

13- Did union try to decrease Wagesalary difference of officers and workers----

Yes -----No -----

14- 15- Did union inform the workers about Rights as worker Yes-------No-------

15- Did union Demand for workers Education Facility Yes-------No--------

-----------------------------------------------------------------------------------------------------

16- Did union exert efforts to increase workers productivityefficiency

Yes-------No--------

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

Any Comment-

17- Did union exert efforts to improve workplace Peace Harmony

Yes-------No--------

How-------------------------------------------------------------------------------------

283

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

18 Is there work council in the organization Yes-------No----

----------------------------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20 Did Union CBA accept any time wage cut for Firm benefit Yes -----No-----

Any comment

------------------------------------------------------------------------------------------------------------

284

Appendix G-4

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR TEMPORARY WORKERS-4

Name of Company Institution ------------------------------------ Public Private

Designation---------------------------Service Length -------Age-----------Education--------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

Question- 1 Does your Wage Increase regularly YES---No--

If increase how much -----------in percentage ---------------

Question- 2 Do you have Job Security YES----No--

Question- 3 What are your Daily Working Hours -----------

Question- 4 Are your Working Conditions ndashwell ----- YES----No--

Question- 5 Do you avail Children Education facility YES----No--

Question- 6 Do you avail HealthTreatment facility YES----No--

Question- 7 Do you have Financial Benefit like bonus YES----No--

Question- 8 Do you have Miscellaneous Benefit (petty Allowance)

YES----No--

Question- 9 How many Yearly leaves Do you have ---------------

Question- 10 Is there any contribution of union in providing these

facilities to you YES----No--

285

Appendix H-1

GLOSSARY

DEFINITIONS OF TERMS OF RESEARCH TITLE

Terms used in research title are defined below

HUMAN RESOURCE DEVELOPMENT (HRD)

Rao (1995 p 26) extracted from UNDP following definition

ldquoHRD implies many facets of development of people including their physical

intellectual emotional political spiritual and all other forms of developmentrdquo

INDUSTRIAL RELATIONS

ldquoThe field of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union Governments set

the framework for labor relations through legislation and regulationrdquo (Wikipedia-a)

LABOR UNIONS

According to lsquoWorld Labor Report 1997-1998rsquo of ILO The Australian Bureau of

Statistics has defined unions as

ldquoAn organization consisting predominantly of employees the principle activities of

which include the negotiation of pay and conditions of employment for its membersrdquo

httpwwwiloorgpublicenglishdialogueifpdialpublwlr97annexnoteshtm

ORGANIZATIONAL CLIMATE

Burton et al (2004) defined Organizational climate as

ldquoOrganizational climate is the attitude of the individuals concerning the

organizationmdashits degree of trust conflict morale rewards equity leader credibility

resistance to change and scapegoating as seen by the individualsrdquo

286

For this research it means with in the organization and not beyond organization on

social or political forums not being a subsidiary of any political party

PAKISTANrsquoS PERSPECTIVE

In Pakistanrsquos industrial relations system all the permanent workers may be member of

any CBA union or other unions or non members but permanent employees of the

organization are equally benefited from collective bargaining Further more in Pakistan there

is its own Perspective for Collective Bargaining Shafiq-ur-Rehman (2003) expressed that

collective bargaining in Pakistan instead of the issue of wage rise typically covers a much

wider range of issues including pecuniary terms of employment (such as non statutory

allowances and benefits) and non pecuniary conditions of employment including job security

and working conditions (such as safety of work place and methods of production)

  • 01 Titledoc
  • 02 Front Matterdoc
    • TABLE OF CONTENTS
    • Page
    • 1 INTRODUCTION 1
      • 2 LITERATURE REVIEW 7
        • 221 Emergence of Labor Unions 12
          • 223 Why Workers Join Unions 17
          • 23 UNIONS ROLE FOR WORKERS BENEFITS 19
          • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39
          • 241 Productivity Efficiency and Profitability 39
          • 242 Work Place Harmony and Cooperative Role 46
            • 25 STRATEGIES AND TACTICS OF UNIONS 50
              • 251 Source of Strength of Unions 50
                • 2511 Unionsrsquo Density and Their Strength to Effect 50
                • 252 Peaceful Means of Achieving Objectives 51
                  • 26 CORRUPTION OF UNIONS 53
                  • 261 Corruption and Selfishness of Officials 53
                    • 264 Bribes (Extortion and Pay-off) 58
                      • 31 HISTORY OF LEGISLATION 61
                        • 311 Laws Permitting Establishment of Unions 62
                          • 312 Laws for Settlement of Disputes 64
                          • 322 ILO Conventions 67
                            • 4 RESEARCH METHODOLOGY 84
                            • 42 POPULATION AND SAMPLING 91
                            • 321 Stage-lsquoIrsquo Sampling of Organizations 91
                              • 422 Stage-lsquoIIrsquo Sampling of Respondents 92
                              • 4221 Sampling of Union Office Bearers 92
                              • 4222 Sampling of Permanent (Unionized) workers 93
                              • 4223 Sampling of Management 93
                                • 43 DATA COLLECTION INSTRUMENTS 93
                                  • 431 Questionnaires and Their Structure 93
                                    • 44 PREPARATION OF SATISFACTION LEVEL SCALE 97
                                      • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103
                                        • BENEFITS
                                        • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105
                                        • 51 DATA PRESENTATION 106
                                          • 521 Organizational Means of Workersrsquo Variables 111
                                          • 522 Organizational Means of Managementrsquos Variables 122
                                            • 532 Chi Square Test Application 166
                                            • 533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182
                                              • 6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195
                                              • 63 CONCLUSIONS 209
                                              • 64 SUGGESTIONS AND RECOMMENDATIONS 210
                                              • 65 SUGGESTIONS FOR FURTHER RESEARCH 212
                                              • REFERENCES 213
                                              • APPENDICES 229
                                              • LIST OF TABLES
                                              • Table Page
                                              • 1 Responses of Workers of ARL Organizational Mean Calculation) 112
                                                • 2 Responses of Workers of CDA (Organizational Mean Calculation) 113
                                                  • 3 Responses of Workers of IESCO (Organizational Mean Calculation) 114
                                                    • 4 Responses of Workers of KTM (Organizational Mean Calculation) 115
                                                      • 7 Responses of workers of PTCL (Organizational Mean Calculation) 118
                                                      • 8 Responses of workers of PTV (Organizational Mean Calculation) 119
                                                      • 9 Responses of workers of SNGPL (Organizational Mean Calculation) 120
                                                      • 11 Responses of Management of ARL 122
                                                          • 12 Responses of Management of CDA 123
                                                            • 18 Responses of Management of PTV 129
                                                            • 39 Chi square calculations - Security (Jsec) 169
                                                              • 40 Chi square calculation - Time reduction (Td) 170
                                                                  • 56 Facilities of Permanent Workers (Union Members) 191
                                                                      • 03 CHAP-1doc
                                                                        • CHAPTER 1
                                                                        • INTRODUCTION
                                                                          • 04 CHAP-2doc
                                                                            • CHAPTER 2
                                                                              • LITERATURE REVIEW
                                                                                • One reason of these hardships in the words of George (2004) is that a majority of working people possess labor as their only resource to carry on with their lives
                                                                                  • 221 Emergence of Labor Unions
                                                                                    • Aidt and Tzannatos (2001) asserted that the desirability of unions depends on many factors including (a) what unions do (b) how collective bargaining is organized and (c) the effectiveness of dispute resolution mechanisms
                                                                                      • 23 UNIONS ROLE FOR WORKERS BENEFITS
                                                                                        • Klaff and Ehrenberg (2003) using the data source of survey conducted in USA by the Association of Higher Education Facilities Officers 1997-1998 investigated that union coverage affected staff salaries at 163 US colleges and universities and estimated a union salary premium of 9- 11
                                                                                          • Similarly Anyemedu (2002) found that in Ghana government considers wage restraint as a means of attracting foreign investment Hence the government and employers have succeeded in installing the capacity to pay of employers as virtually the only factor to be taken into account in wage determination
                                                                                            • Labor unions also exert efforts for increasing equality and reducing discrimination in wages of workers
                                                                                              • This time reduction was prevailing everywhere at large extent as Aidt amp Tzannatos 2001) wrote that hours worked is lower among unionized than non-unionized workers This is true for both total and normal hours
                                                                                                • Unionsrsquo role in securing health safety and welfare benefits for employees has been found in following studies
                                                                                                  • Stiglitz (2000) admitted that unions have played role in Health and safety standards and had played also role in improvement of working conditions for workers
                                                                                                    • Unions also have an eye on the life of workers after the end of service For this they exert efforts either in the form of arranging employer contribution or launch their own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is shown in the several researches where unionized workers receive better pension options and opportunities
                                                                                                      • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY
                                                                                                        • The co-operative role of unions towards state employer and society by exerting efforts to increase productivity and efficiency has been studied by several researchers as quoted in following lines
                                                                                                          • 241 Productivity Efficiency and Profitability
                                                                                                          • 242 Work Place Harmony and Cooperative Role
                                                                                                            • Song (1999) wrote that South Korean unionrsquos struggled to promote worker compliance and commitment to firms and brought the employees back from street rallies into the workplace
                                                                                                              • 25 STRATEGIES AND TACTICS OF UNIONS
                                                                                                              • For the achievement of objectives of securing benefits for the workers and solution of their problems unions adopt peaceful and violent means and succeed when they have strength or fail in their struggle if they have no strength Numerous researches have highlighted it
                                                                                                                • Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos view large and centralized unions are more functional and influential than fragmented unions
                                                                                                                  • 251 Source of Strength of Unions
                                                                                                                    • 2511 Unionsrsquo density and their strength to effect
                                                                                                                    • 252 Peaceful Means of Achieving Objectives
                                                                                                                      • 26 CORRUPTION OF UNIONS
                                                                                                                      • Though unions exerted efforts for securing benefits gaining respect and building a fearless atmosphere for their workers but unionsrsquo history is also plagued by corruption which has been brought to light by following researches
                                                                                                                      • 261 Corruption and Selfishness of Officials
                                                                                                                      • For unions in Pakistan Khan (1992) expressed that the numerical increase of trade unions leads to personal rivalry of union leaders competing for command over small unions The trade unions leaders fight among themselves instead of fighting against management or government and every leader is status seeker caring more for his own prestige and image than to cause of common worker or unionism
                                                                                                                        • 264 Bribes (Extortion and Pay-off)
                                                                                                                          • 05 CHAP-3doc
                                                                                                                            • CHAPTER 3
                                                                                                                              • 31 HISTORY OF LEGISLATION
                                                                                                                                • 311 Laws Permitting Establishment of Unions
                                                                                                                                • 312 Laws for Settlement of Disputes
                                                                                                                                • 322 ILO Conventions
                                                                                                                                  • 06 CHAP-4doc
                                                                                                                                    • CHAPTER 4
                                                                                                                                    • RESEARCH METHODOLOGY
                                                                                                                                    • 42 POPULATION AND SAMPLING
                                                                                                                                    • 421 Stage-lsquoIrsquo Sampling of Organizations
                                                                                                                                    • 422 Stage-lsquoIIrsquo Sampling of Respondents
                                                                                                                                    • 4221 Sampling of union office bearers
                                                                                                                                    • 4222 Sampling of permanent (Unionized) workers
                                                                                                                                    • 4223 Sampling of management
                                                                                                                                      • 43 DATA COLLECTION INSTRUMENTS
                                                                                                                                        • 431 Questionnaires and their Structure
                                                                                                                                          • 44 PREPARATION OF SATISFACTION LEVEL SCALE
                                                                                                                                            • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS
                                                                                                                                              • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits
                                                                                                                                                  • 07 CHAP-5doc
                                                                                                                                                    • 51 DATA PRESENTATION
                                                                                                                                                    • 521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES
                                                                                                                                                    • Organization wise arithmetic means and percentages of all the organizations on the basis of the variables pertaining to workers have been calculated below in tables 1 to table 10
                                                                                                                                                    • Table-1 Responses of Workers of ARL Organizational Mean Calculation)
                                                                                                                                                      • Ced
                                                                                                                                                      • We
                                                                                                                                                        • Table 2 Responses of Workers of CDA (Organizational Mean Calculation)
                                                                                                                                                          • We
                                                                                                                                                          • Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)
                                                                                                                                                            • Linc
                                                                                                                                                              • We
                                                                                                                                                                • Table 4 Responses of Workers of KTM (Organizational Mean Calculation)
                                                                                                                                                                  • Jsec
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 7 Responses of workers of PTCL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 8 Responses of workers of PTV (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • 522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES
                                                                                                                                                                    • Organization wise arithmetic means of all the organizations on the basis of the two variables pertaining to management have been calculated below in tables 11 to table 20
                                                                                                                                                                    • Table 11 Responses of Management of ARL
                                                                                                                                                                      • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing that union of ARL is exerting efforts in exhorting workers to work for the interest of employer Therefore union is successful
                                                                                                                                                                          • Table 12 Responses of Management of CDA
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (KTM) = Σ Xi2 = 82 = 400
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (OGDC) = Σ Xi2 = 72 = 35
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                              • Table 18 Responses of Management of PTV
                                                                                                                                                                                • Organizational Mean (SNGPL) = ΣXi2 = 72 = 35
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                  • Variable Mean = Σ fXi 525 = 1856525 = 354
                                                                                                                                                                                  • Variable Mean = = Σ fXi 525 1730525 = 330
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 =1643 525 = 313
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 = 1582525 = 301
                                                                                                                                                                                      • We
                                                                                                                                                                                      • 331
                                                                                                                                                                                        • 532 CHI SQUARE TEST APLICATION
                                                                                                                                                                                            • Table 39 Chi square calculations ndash Job security (Jsec)
                                                                                                                                                                                              • Table 40 Chi square calculation - Time reduction (Td)
                                                                                                                                                                                                • 533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS
                                                                                                                                                                                                  • Variable Mean
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 3210 = 33
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 4010 = 4
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Total of Means
                                                                                                                                                                                                    • (Data from calculations of tables 52 amp 53
                                                                                                                                                                                                      • By putting the values of means of columns in the equation
                                                                                                                                                                                                      • Combine Mean = Σ i N = Se = (Pin + Wph)2
                                                                                                                                                                                                      • Se = (33 + 40)2 = 732
                                                                                                                                                                                                          • Table 56 Facilities of Permanent Workers (Union Members)
                                                                                                                                                                                                            • ARL
                                                                                                                                                                                                              • 08 CHAP-6doc
                                                                                                                                                                                                                • DISCUSSION CONCLUSION AND RECOMMENDATIONS
                                                                                                                                                                                                                • 64 SUGGESTIONS AND RECOMMENDATIONS
                                                                                                                                                                                                                • 65 SUGGESTIONS FOR FURTHER RESEARCH
                                                                                                                                                                                                                  • 09 Reference amp Appendicesdoc
                                                                                                                                                                                                                    • Appendix A-1
                                                                                                                                                                                                                    • Appendix A-3
                                                                                                                                                                                                                    • Workers by Designation of IESCO
                                                                                                                                                                                                                    • Appendix A-4
                                                                                                                                                                                                                    • Workers by Designation PTV
                                                                                                                                                                                                                    • Appendix A-9
                                                                                                                                                                                                                    • Workers by Designation of SNGPL
                                                                                                                                                                                                                    • Workers by Designation of ZTBL
                                                                                                                                                                                                                    • Appendix A-11
                                                                                                                                                                                                                    • Representatives of Unions and Employers Interviewed
                                                                                                                                                                                                                    • Appendix - B-1
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed ARL
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed CDA
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed IESCO
                                                                                                                                                                                                                      • Appendix - B-4
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed KTM
                                                                                                                                                                                                                      • Appendix B-5
                                                                                                                                                                                                                        • Workers by EstablishmentPlace of Posting Interviewed OGDCL
                                                                                                                                                                                                                          • Workers by EstablishmentPlace of Posting Interviewed PCP
                                                                                                                                                                                                                            • Workers by EstablishmentPlace of Posting Interviewed PTCL
                                                                                                                                                                                                                              • Workers by EstablishmentPlace of Posting Interviewed PTV
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed SNGPL
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed ZTBL
                                                                                                                                                                                                                                  • Financial Benefits of Workers (by Unionsrsquo Efforts)
                                                                                                                                                                                                                                  • Non Financial Facilities of Workers (by Union Efforts)
                                                                                                                                                                                                                                    • Abbreviation
                                                                                                                                                                                                                                      • Explanation
                                                                                                                                                                                                                                      • FREQ or Freq
                                                                                                                                                                                                                                      • Frequency
                                                                                                                                                                                                                                      • IND
                                                                                                                                                                                                                                      • Indifferent
                                                                                                                                                                                                                                      • ORG
                                                                                                                                                                                                                                      • Organization
                                                                                                                                                                                                                                      • RES
                                                                                                                                                                                                                                      • Respondents
                                                                                                                                                                                                                                      • S
                                                                                                                                                                                                                                      • Satisfied
                                                                                                                                                                                                                                      • US
                                                                                                                                                                                                                                      • Un-satisfied
                                                                                                                                                                                                                                      • UN
                                                                                                                                                                                                                                      • Union
                                                                                                                                                                                                                                      • VAR
                                                                                                                                                                                                                                      • Variables
                                                                                                                                                                                                                                      • VS
                                                                                                                                                                                                                                      • Very Satisfied
                                                                                                                                                                                                                                      • VUS
                                                                                                                                                                                                                                      • Very Un-satisfied
                                                                                                                                                                                                                                      • WT or Wt
                                                                                                                                                                                                                                      • Weight or weighted
                                                                                                                                                                                                                                      • Y
                                                                                                                                                                                                                                      • YES
                                                                                                                                                                                                                                      • N
                                                                                                                                                                                                                                      • NO
                                                                                                                                                                                                                                      • Σ
                                                                                                                                                                                                                                      • Sum Total
                                                                                                                                                                                                                                        • Name of Variable
                                                                                                                                                                                                                                          • Workers Education
                                                                                                                                                                                                                                          • We
                                                                                                                                                                                                                                          • Appendix ndash F-1
                                                                                                                                                                                                                                          • Responses of Union Workers and Management of ARL
                                                                                                                                                                                                                                              • Top
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Appendix ndash F-2
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of CDA
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of IESCO
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                  • Responses of Union Workers and Management of KTM
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTCL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTV
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of SNGPL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Essentiality of Unions Inter Unions Relations and
                                                                                                                                                                                                                                                    • (Questionnaire-1 Question 18amp 19)
                                                                                                                                                                                                                                                    • About Work Council and Unionistsrsquo Training
                                                                                                                                                                                                                                                    • About Charter of Demand and Wage Cut
                                                                                                                                                                                                                                                        • Appendix G-1
                                                                                                                                                                                                                                                        • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                        • PERSONAL INFORMATION
                                                                                                                                                                                                                                                          • If yes how much amount-------------------------- How many times a year-------------------
                                                                                                                                                                                                                                                          • How---------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • Appendix G-2
                                                                                                                                                                                                                                                              • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR WORKERS-2
                                                                                                                                                                                                                                                                  • Personal Data
                                                                                                                                                                                                                                                                    • If yes then how-------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                      • Appendix G-3
                                                                                                                                                                                                                                                                      • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                      • QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3
                                                                                                                                                                                                                                                                        • UNION INFORMATIOM
                                                                                                                                                                                                                                                                          • 3- Did union demand for workers Job security -------Yes-----------No---------
                                                                                                                                                                                                                                                                            • 18 Is there work council in the organization Yes-------No----
                                                                                                                                                                                                                                                                                • Appendix G-4
                                                                                                                                                                                                                                                                                • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR TEMPORARY WORKERS-4
                                                                                                                                                                                                                                                                                  • PAKISTANrsquoS PERSPECTIVE

iii

CANDIDATE DECLARATION FORM I Muhammad Tariq Khan_____________________________________________

Son of Mr Chanan Khan

Registration No 135-PhDHRD2003

Discipline Human Resource Development

Candidate of Doctor of Philosophy at the National University of Modern Languages do hereby declare that Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective submitted by me in partial fulfillment of PhD degree in disciplinedepartment Faculty of Advanced Integrated Studies amp Research is my original work and has not been submitted or published earlier I also solemnly declare that it shall not in future be submitted by me for obtaining any other degree from this or any other university or institution I also understand that if evidence of plagiarism is found in my dissertation at any stage even after the award of a degree the work may be cancelled and the degree revoked August 11 2008 ____________________ Date Signature

Muhammad Tariq Khan Name

iv

ABSTRACT

Dissertation Title Industrial Relations Role of Labor Unions in Organizational

Climate in Pakistans Perspective

Purpose of this research was to explore the aspects of HRD beyond education and

training and to explore the role of labor unions in HRD by looking at the improvement in

productivity and harmony at work place due to them For this purpose survey

questionnaires on five point Likert scale ranging from very unsatisfied to very satisfied

were designed and pre-tested The study was carried out by taking a sample of 10

unionized organizations In these organizations 525 unionized workers 90 temporary

non-unionized workers and employers were interviewed to collect information on role of

labor unions in securing benefits for workers and motivating them for higher productivity

and peace at work place Performance of unions was estimated in two aspects One

aspect was their success in securing benefits for workers and other was in protecting the

interest of employers The success of unionsrsquo in exerting efforts for securing benefits for

workers was measured by satisfaction of workers which was dependent on15 variables

ie wage rise fringe benefits job security time decrease health facilities children

education over time payment working conditions leaves increase post retirement

benefits recreation facilities training opportunities decrease of wage differences

informing workers about their rights and workersrsquo education The success of unionsrsquo in

exerting efforts for protecting employersrsquo interest was measured by satisfaction of

employers which was dependent on two variables ie productivity increase and work

place harmony The results of the study show that unions proved successful in securing

benefits for workers and protecting the interest of employers though performance of

unions needs to be improved by exerting more efforts

v

TABLE OF CONTENTS

Page Inner title page i

Dissertation and Defense approval form ii

Candidate Declaration Form iii

Abstract iv

Table of Contents v

List of Figure xi

List of Tables xiii

List of Acronyms xvi

Acknowledgements xix

1 INTRODUCTION 1

11 BACKGROUND OF STUDY OF HUMAN RESOURCE 1

DEVELOPMENT

12 EXISTING PROBLEM 2

13 PURPOSE OF RESEARCH 4

14 RESEARCH QUESTIONS 4

15 SIGNIFICANCE OF THE RESEARCH 6

16 LIMITATIONS OF RESEARCH 6

2 LITERATURE REVIEW 7

21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT 7

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS 10

221 Emergence of Labor Unions 12

222 Unionization Problem 12

2221 Opposition of Unionization by State 13

2222 Opposition of Unionization by Employer 16

223 Why Workers Join Unions 17

23 UNIONS ROLE FOR WORKERS BENEFITS 19

231 Wage Rise 21

vi

232 Reduction in Wage Inequality 24

233 Fringe Benefits 25

234 Job Security and Employment 26

235 Time Reduction (Duty Hours) 28

236 Payment of Over Time 29

237 Paid Leaves 29

238 Working Condition 30

239 Health Care and Social Security 31

2310 Post Retirement Benefits (Pensions) 33

2311 Training Opportunities 34

2312 Workersrsquo Education 36

2313 Recreational and Social Services 37

2314 Children Education 39

2315 Workers Awareness 39

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39

241 Productivity Efficiency and Profitability 39

242 Work Place Harmony and Cooperative Role 46

25 STRATEGIES AND TACTICS OF UNIONS 50

251 Source of Strength of Unions 50

2511 Unionsrsquo Density and Their Strength to Effect 50

252 Peaceful Means of Achieving Objectives 51

253 Violent Means 52

26 CORRUPTION OF UNIONS 53

261 Corruption and Selfishness of Officials 53

262 Financial Corruption 53

2621 Embezzlement Examples 56

263 Unionsrsquo Officers Monopoly 57

264 Bribes (Extortion and Pay-off) 58

265 Sound Labour Relations at the Workplace no Important 59

Concern of Employers and Unions

vii

3 HISTORY AND LEGAL FRAME WORK OF UNIONIZATION 60

IN PAKISTAN

31 HISTORY OF LEGISLATION 61

311 Laws Permitting Establishment of Unions 62

312 Laws for Settlement of Disputes 64

313 Industrial Relations Ordinance 1969 64

32 RIGHT OF UNIONIZATION 66

321 United Nationsrsquo Declaration of Human Rights 66

322 ILO Conventions 67

323 Constitution of Pakistan 67

33 PRESENT ENFORCED LAWS 68

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo 68

332 Labor Laws Granting Rights 72

3321 Workmen Compensation Act 1923 72

3322 Factories Act 1934 72

3323 Payment of Wages Act 1936 73

3324 The minimum Wages Ordinance 1961 73

3325 Social Security Ordinance 1965 73

3326 The industrial and commercial Employment (standing

order) Ordinance 1968 74

3327 The companies Profit (workersrsquo participation)

Act 1968 74

3328 The Shops and Establishments Ordinance 1969 74

3329 The Minimum Wages for Unskilled Workers 74

Ordinance 1969

33210 Workers Welfare fund Ordinance 1971 75

33211 Workers Children (Eucation) Ordinance 1972 75

33212 Employees Cost of Living (Relief) Act 1973 75

33213 Employees Old Age Benefit Act 1976 76

333 Labor Policies 76

3331 First Policy (1955) 76

viii

3332 Second Policy (1959) 77

3333 Third Policy (1969) 77

3334 Fourth Policy (1972) 78

3335 Fifth Policy (2002) 79

3336 Labor Protection Policy 2005 81

3337 Labor Inspection Policy 2006 82

4 RESEARCH METHODOLOGY 84

41 THEORETICAL FRAME WORK 84

411 Research Model and Variable Formation 84

412 Research Hypotheses 91

42 POPULATION AND SAMPLING 91

321 Stage-lsquoIrsquo Sampling of Organizations 91

422 Stage-lsquoIIrsquo Sampling of Respondents 92

4221 Sampling of Union Office Bearers 92

4222 Sampling of Permanent (Unionized) workers 93

4223 Sampling of Management 93

4224 Sampling of Temporary (Non-unionized) Workers 93

43 DATA COLLECTION INSTRUMENTS 93

431 Questionnaires and Their Structure 93

44 PREPARATION OF SATISFACTION LEVEL SCALE 97

45 PILOT STUDY 97

46 CODES AND ABBREVIATIONS 97

47 STATISTICAL METHODS APPLIED 98

471 Percentage 98

472 Arithmetic Mean 98

473 Chi Square (χ2) 100

474 Comparison 101

48 CALCULATIONS BY APPLYING STATISTICAL METHODS 101

481 Percentage Calculation of Yes No Responses 101

482 Means Calculations 101

483 Chi Square Applications 103

ix

484 Comparison Application 103

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103

BENEFITS

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105

5 DATA ANALYSIS AND RESULTS 106

51 DATA PRESENTATION 106

511 Organization-Wise Description of Respondents 106

5111 Description of respondents of ARL 107

5112 Description of respondents of CDA 107

5113 Description of respondents of IESCO 107

5114 Description of respondents of KTM 108

5115 Description of respondents of OGDCL 108

5116 Description of respondents of PCP 108

5117 Description of respondents of PTCL 108

5118 Description of respondents of PTV 109

5119 Description of respondents of SNGPL 109

51110 Description of respondents of ZTBL 109

51111 Workers responses of the questions about essentiality

inter unions relations and unions status as compared 109

to past

51112 Unionsrsquo office bearersrsquo responses of the questions 110

about work council charter of demand and unionistsrsquo

training

51113 Management responses about work council charter 110

of demand and wage cut

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA 110

521 Organizational Means of Workersrsquo Variables 111

522 Organizational Means of Managementrsquos Variables 122

53 VARIABLE-WISE ANALYSIS 132

531 Mean Calculation of Variables Measuring Unionsrsquo Efforts 133

for Workersrsquo Benefits

x

5311 Combined Mean of All Workers Variables 163

532 Chi Square Test Application 166

533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED 190

WORKERS

56 WORKERS RESPONSES FOR QUESTIONS ABOUT

ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS 193

STATUS AS COMPARED TO PAST

6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195

61 DISCUSSION 195

611 Organization-Wise Performance of Unions 195

6111 ARL Union 195

6112 CDA Union 196

6113 IESCO Union 196

6114 KTM Union 196

6115 OGDC Union 197

6116 PCP Union 197

6117 PTCL Union 198

6118 PTV Union 198

6119 SNGPL Union 198

61110 ZTBL Union 199

612 Variable-Wise Performance of Unions 199

6121 Workers relating variables 200

6122 Employer relating variables 204

613 Comparison with Non-Unionized Workers 205

62 ANSWERS OF RESEARCH QUESTIONS 207

63 CONCLUSIONS 209

64 SUGGESTIONS AND RECOMMENDATIONS 210

65 SUGGESTIONS FOR FURTHER RESEARCH 212

REFERENCES 213

APPENDICES 229

xi

LIST OF FIGURES Figure No Page 1 Showing sequence of variables effect 84 2 Pie Diagram - Satisfaction Level of Workers on Wage 134

3 Pie Diagram - Satisfaction Level of Workers Financial Benefits 136

4 Pie Diagram - Satisfaction Level of Workers on Job Security 138

5 Pie Diagram - Satisfaction Level of Workers on Time Reduction 140

6 Pie Diagram - Satisfaction Level of Workers on Health Facilities 142

7 Pie Diagram - Satisfaction Level of Workers on Children Educat 144

8 Pie Diagram - Satisfaction Level of Workers on Overtime Pay 146

9 Pie Diagram - Satisfaction Level of Workers on Working Cond 148

10 Pie Diagram - Satisfaction Level of Workers on Leave Facilities 150

11 Pie Diagram - Satisfaction Level of Workers on Post Retire Bfts 152

12 Pie Diagram - Satisfaction Level of Workers on Recreation Fac 154

13 Pie Diagram - Satisfaction Level of Workers on Training Oppor 156

14 Pie Diagram - Satisfaction Level of Workers on Dec Wage Diff 158

15 Pie Diagram - Satisfaction Level of Workers on informing Right 160

16 Pie Diagram - Satisfaction Level of Workers on Workers Educat 162

17a Diagrammatic Presentation of Means of Workers Variables 165

(Bar Diagram)

xii

17b Diagrammatic Presentation of Means of Workers Variables 165

(Line Graph)

18 Pie Diagram - Satisfaction Level of Employers on Productivity 184

Efficienc Increase

19 Pie Diagram - Satisfaction Level of Employers on Workplace 184

Harmony

20a Diagrammatic Presentation of Means of Employers Variables 188

(Bar Diagram)

20b Diagrammatic Presentation of Means of Employers Variables 188

(Line Graph)

21 Diagrammatic Presentation of success of unions 189

(Success Matrix)

xiii

LIST OF TABLES

Table Page

1 Responses of Workers of ARL Organizational Mean Calculation) 112

2 Responses of Workers of CDA (Organizational Mean Calculation) 113

3 Responses of Workers of IESCO (Organizational Mean Calculation) 114

4 Responses of Workers of KTM (Organizational Mean Calculation) 115

5 Responses of Workers of OGDCL (Organizational Mean Calculation) 116

6 Responses of workers of PCP (Organizational Mean Calculation) 117

7 Responses of workers of PTCL (Organizational Mean Calculation) 118

8 Responses of workers of PTV (Organizational Mean Calculation) 119

9 Responses of workers of SNGPL (Organizational Mean Calculation) 120

10 Responses of workers of ZTBL (Organizational Mean Calculation) 121

11 Responses of Management of ARL 122

12 Responses of Management of CDA 123

13 Responses of Management of IESCO 124

14 Responses of Management of KTM 125

15 Responses of Management of OGDC 126

16 Responses of Management of PCP 127

17 Responses of Management of PTCL 128

18 Responses of Management of PTV 129

19 Responses of Management of SNGPL 130

20 Responses of Management of ZTBL 131

21 Mean calculations-wage rise (Wris) 133

22 Mean Calculations - Bonus (Financial Benefits) (Fbft) 135

23 Mean Calculations - Job Security (J-sec) 137

24 Mean Calculations - Time Reduction (Td) 139

25 Mean Calculations - Health Facilities (Hfac) 141

xiv

26 Mean calculations- Children Education (Ced) 143

27 Mean Calculations - Over Time Payment (Ot) 145

28 Mean Calculations - working conditions (Wcon) 147

29 Mean Calculations- leaves facility (Linc) 147

30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb) 151

31 Mean Calculations -Recreation facilities (Rfac) 153

32 Mean Calculations - training opportunities (Top) 155

33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) 157

34 Mean calculations - informing about rights (Ir) 159

35 Mean calculations - workersrsquo education (We) 161

36 Summary of means of workers variables and calculation of combined 163

mean

37 Chi square calculations wage rise (Wris) 167

38 Chi square calculations - Bonus (financial benefits) (Fbft) 168

39 Chi square calculations - Security (Jsec) 169

40 Chi square calculation - Time reduction (Td) 170

41 Chi square calculations - Health facilities (Hfac) 171

42 Chi square calculations - Children education (Ced) 172

43 Chi square calculations - Overtime payment (Ot) 173

44 Chi square calculations - Working conditions (Wcon) 174

45 Chi square calculations - Leaves facility (Linc) 175

46 Chi square calculations - Post retirement benefits facility (Prb) 176

47 Chi square calculations - Recreation facilities (Rfac) 177

48 Chi square calculations - Training facilities (Top) 178

49 Chi square calculationsndashDecreasing workers officers wage salary gap(Wdf)179

50 Chi square calculations - Informing about rights (Ir) 180

51 Chi square calculations - Workersrsquo education (We) 181

52 Calculation of mean of Management responses for unionsrsquo 183

efforts for Productivity Efficiency increase (Pin)

xv

53 Calculation of mean of Management Responses for

Workplace Harmony (Wph) 185

54 Calculation of Combined Mean of Management Responses (Se) 187

55 Facilities of Temporary Workers (Not Union Members) 190

56 Facilities of Permanent Workers (Union Members) 191

57 Essentiality Inter unions Relations and Unions status Compared to Past 193

xvi

LIST OF ACRONYMS

AFL-CIO- American Federation of Labor ndash Congress of Industrial Organizations

AFSCME- American Federation of State and County Municipal Employees

BEST- Basic Education and Skills Training

CBA ndash Collective bargaining Agent

CLR - Campaign for Labor Rights

CC OO-the Confederacion Sindical de Comisiones Obreras(Spain)

CFDT - Confederation Francaise Travail (Niger)

CNSS- National Social Security Scheme (Niger)

CNT- Confederation Nigeacuterienne du Travail

COSATU - Congress of South African Trade Unions

CO2- carbon dioxide

CROC- Revolutionary Confederation of Workers and Peasants (Mexico)

CSD- Commission on Sustainable Development (UNO)

DGTU- Director General of Trade Union (Malaysia)

ECEC ndash Employersrsquo Cost for Employeesrsquo Compensation

EPI- Economics Policy Institute

FAO- Food amp Agricultural Organization

FMLA- Family Medical Leave Act (USA)

xvii

HKDF- Hong Kong Democratic Federation

ILO- International Labor Organization

ITF -International Transport Workersrsquo Federation (ITF)

LDC ndash Lower Division Clerk

LIUNA- The Laborers International Union of North America (USA)

LO- Landsorganizationen i Sverige (Swedish Federation of Trade Unions)

LPL Laborers Political League

MNC- Multi National Corporation

NLRB- National Labor Relation Board (USA)

NMU - National Maritime Union

NTUC National Trade Unions Confederation (Singapore)

OECD- Organization for Economic Cooperation and Development

OSHA- Organizational Safety and Health Act (USA)

PSI- Public Services International

PWF- Pakistan Workersrsquo Federation

SDF- Study Development Fund (Singapore)

SRP ndash Skill Re-development Program (Singapore)

TUAC-Trade Union Advisory Committee to the OECD (TUAC)

TUC - Trade Union Congress

UDC - Upper Division Clerk

UGT- Union General de Trabajadores (SPAIN)

xviii

UI-Unemployment insurance

UK ndash United Kingdom

UNDP United Nations Development Program

UNEP- United Nations Environmental Program

USA ndash United States of America

USTN - Union des Syndicats des Travailleurs du Niger

WERS ndash Workplace Employee Relation Survey (USA)

WHO- World Health Organization

WISE- Workers Improvement through Secondary Education (Singapore)

WRTP Wisconsin Regional Training Partnership

WTO- World Trade Organization

xix

ACKNOWLEDGEMENTS

All glory and praise to God Almighty Who bestowed his blessing upon me in my

life and now enabled me to accomplish this research work

I am greatly indebted to my honorable supervisor Dr Zafar Mueen Nasir Chief of

Research (PIDE) presently Director (Policies) Policy Planning Cell Labor and

Manpower Division Ministry of Labor Manpower and Overseas Pakistanis Government

of Pakistan whose encouraging kind valuable and timely guidance enabled me to

complete this study

I feel pleasure to place record of my deep sense of thankfulness to Professor Dr

Rasheed Ahmed Khan Dean Faculty of Management Sciences and Prof Dr Allah

Bakhsh Dean Faculty of Education National University of Modern Languages Islamabad

Prof Dr Sarfraz Ahmed Mian Chairman Department of Economics University of Arid

Agriculture Rawalpindi Prof Dr Irshad Ahmed Department of Statistics Allama Iqbal

Open University Islamabad and Dr Khalid Masud Visiting Faculty Member Allama

Iqbal Open University Islamabad for their guidance in this research

I am heavily indebted to my family for the time they sacrificed for me during my

studies Their constant support and encouragement helped me to complete this difficult

task

No acknowledgement could even adequately express the thankfulness to my

friends who have always been encouraging me for educational achievements

At the end I pay thanks to all those who were directly or indirectly involved in the

completion of my thesis

CHAPTER 1

INTRODUCTION

When planning for one year theres nothing better than planting grain when

planning for ten years theres nothing better than planting trees when

planning for a lifetime theres nothing better than planting men

Chinese philosopher Guanzi (551 - 479 BC)

11 BACKGROUND OF STUDY OF HUMAN RESOURCE DEVELOPMENT

Human Resource Development is an important discipline of present time It is

considered by scholars of Business Administration as a sub discipline of Human

Resource Management (HRM) concerned with developing productive skills by

imparting them training Werner and DeSimone (2006 p5) defined Human Resource

Development (HRD) as ldquoa set of systematic and planned activities designed by an

organization to provide its members with the opportunities to learn necessary skills to

meet current and future job demandsrdquo Werner and DeSimone (2006) described HRD

as a function of HRM According to Rao (1995) the scope of HRD is extended at one

side to developing competencies of human resource by enhancing knowledge

building skill changing attitude and teaching values and at other side creation of

conditions through public policy programs and other interventions to help people to

apply these competencies for their own and othersrsquo benefits and making things

happen Bacchus (1992) asserted that the ultimate goal of HRD in any country is lsquoto

improve the quality of life of all itrsquos people and not merely concerned with providing

necessary skills to individuals The concept of HRD deals with many facets of

development of individuals including their physical intellectual emotional political

and spiritual aspects

People earn their food and living by working and engage themselves in

productive activities for which a combination of both physical and intellectual

2

development is important Physical development comes from good nourishment and

medical care Intellectual development comes through the process of education and

socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life Thus all aspects of development are integral part

of HRD According to Rao (1995) ultimately what is important is human satisfaction

and the quality of life Developing people is the essence of any HRD effort and it is an

important goal of all other development activities (plans policies programs

establishment of new structures mechanism) All forms of development (economic

technological ecological agricultural industrial etc) are ultimately meant to serve

people in terms of improving their happiness through better quality and standards of

life

The focus of the present study is on improvement of quality of life of workers

due to unionrsquos active role in negotiating higher wages and good working conditions

for them because workers of any organization have weak bargaining power as

employees without their collective representation by a labor union Labor unions exert

their pressure to convince or compel the employer to extend financial benefits ie

good wages bonuses and allowances and non financial benefits ie health facilities

better working conditions recreation facilities training opportunities job security

facilities for education reasonable daily working hours and paid leaves

These facilities improve the living conditions of workers who in turn exert

more efforts to enhance their productivity and profit of the organization

12 EXISTING PROBLEM

Presently in Pakistan the supply of labor is more than its demand causing

unemployment in the country The unemployment rate in Pakistan is estimated as 53

percent in 2006 -07 (LFS 2007) Due to surplus supply of labor its price (wagesalary)

3

is low Government has raised minimum wage recently to Rs 6000- per month which

was only Rs 4600- per month

With this limited income workers can not meet their needs making them

healthy and motivated to work efficiently and dedicatedly Management builds the

skills of workers by training to increase their performance and efficiency but even if

workers are skillful and well trained their performance may not be up to mark of

satisfaction until they are not physically healthy mentally satisfied and motivated or

developed in HRD context But employers usually do not pay attention towards this or

do not desire to pay good remuneration or provide better atmosphere in the pretext of

higher labor cost Unions try to convince or compel the employer for better

remuneration and better atmosphere

If unions are playing a role by protecting the rights of workers and making

efforts to secure benefits for them then the membership of unions must increase but a

declining trend in membership of unions has been observed globally Freeman and

Medoff (1984) Hyman (1999) (Jose 2000) Hirsch and Schumacher (2000) Machin

(2000) Bryson (2001) Saavedra and Torero (2002) Ebbinghaus (2002) Knox (2004)

and Eisenbrey (2007)

The question is (1) why workers are not joining labor unions (2) Are unions

not protecting the rights of workers or exerting efforts for securing benefits for them

A few research studies have looked at the negative image of the labor unions

Ghayur (1996-a) has pointed out that quiet often labor unionism is seen as undesirable

intervention in the smooth functioning of organizations with out realizing the positive

contribution it could make towards industrial peace harmony and progress Employers

allege that labor unions only talk about workersrsquo rights and ignore their obligations

They believe that unions are largely responsible for low productivity and lower

production

4

13 PURPOSE OF RESEARCH

The purpose of this research is to answer three questions

1 Are unions protecting the rights of workers or exerting efforts for

securing benefits for them

2 Do labor unions play any role in promoting physical intellectual and

emotional development of workers and

3 Do unions put any effort to enhance the productivity of the workers and

improve peace at place of work

The effectiveness of trade unions in promoting HRD is determined by some of

the benefits workers receive due to unions Particularly the focus is on the role of

unions in

1 Securing financial benefits for workers in the form of wage rise

bonuses and other allowances

2 Securing non financial benefits for workers like health facilities

workersrsquo education better working conditions decrease in working

hours increase in annual leaves training opportunities etc

3 Giving the workers sense of awareness about their rights

4 Improving the productivity or efficiency of the employees

5 Making harmony at work place between the management and

employees and making efforts for a peaceful industrial atmosphere

14 RESEARCH QUESTIONS

1 To what extent the unions in Pakistan are effective in development of

HR by securing benefits for workers such as

i) Wage rise

ii) Fringe benefits like Bonus

5

iii) Job Security

iv) Time decrease or resistance against time increase

v) Health or Medical treatment facilities

vi) Education facility

vii) Overtime payment

viii) Better working conditions

ix) Leaves increase or resistance against leaves decrease

x) Post-retirement benefits like pension

xi) Arranging recreation facilities

xii) Training opportunities

xiii) Decreasing wages inequality

xiv) Informing workers about their rights

xv) Children education facility

2 To what extent the unions in Pakistan are effective in promoting

employersrsquo interest by developing HR by putting efforts in

i) Motivating workers for increasing productivity improving

efficiency

ii) Improving peace and harmony at workplace

The answers of these questions will determine the effectiveness of unions in

promoting Human Resource Development (HRD)

6

15 SIGNIFICANCE OF THE RESEARCH

The findings conclusions and recommendations of the study will be beneficial

for

1- Governmentrsquos labor policy maker to frame out workers friendly

policies

2- Employers while deciding workers benefits

3- Unions while demanding facilities for workers

4- Workers while making decision of electing their unionCBA

5- Industrial Relations researchers to search further in the matter

16 LIMITATIONS OF RESEARCH

The limitations of the study are

1 The sample covered in the study is only individuals of Rawalpindi Islamabad

and therefore the results can not be generalized to whole of Pakistan

2 The role of trade unions in promoting HRD is measured through employeersquos

benefits and that too is based on the responses of the workers which may

introduce biasness in the results

3 The scale used in the questionnaire for measuring performance of unions is

arbitrary and that too can introduce bias

CHAPTER 2

LITERATURE REVIEW

lsquoHealth and strength physical mental and moral are the basis of industrial wealth while conversely the chief importance of material wealth lies in the fact that when wisely used it increases the health and strength physical and mental and moral of human race

Alfred Marshall (1890) quoted in World Bank Report (1991) 21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT

The ultimate goal of human resource development is to improve the quality of

life of people The human resource development strategy is not merely providing

necessary skills and enabling workers to secure employment rather it encompasses all

those activities which lay the foundation for a fuller and more productive utilization of

the total human resources The concept of HRD implies physical intellectual

emotional political spiritual and all other facets of human development Food

nutrition and freedom from disease are important inputs which make people

productive members of a nation Physical development comes from good nourishment

and medical care Intellectual development comes through the process of education

and socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life and ensure his comfort Thus all forms of

development of people can be included in the definition of HRD Rao (1995) wrote

8

that HRD leads to human satisfaction and the quality of life which is the ultimate goal

Developing people is an important goal of all development activities (plans policies

programs establishment of new structures mechanism) These developments

(economic technological ecological agricultural industrial etc) are ultimately meant

to serve people in terms of improving their happiness through better quality and

standards of life

Human resource development holds the key for economic development by

enabling people to become more productive because economic development depends

upon level of industrial activity which is dependent upon the productivity of human

resource Productivity of human resource depends upon its competencies and

conditions (through public policy programs and other interventions to help the

people) to apply these competencies These conditions are Physical fitness and

motivation Fashoyin (1997) opined that the workers in competitive economic

environment become more important agent in mobilizing all factors of production

towards achievement of a competitive advantage But this is possible by motivated

workforce And motivation of the workforce to commit itself to work and maintain

uninterrupted and effective operations further depends on satisfaction of workers

Worker would be healthy when they are well nourished and physically fit and

motivated when they enjoy better quality and standard of life This would be achieved

when they would receive proper share in the production or development in the form of

increased income or financial benefits enabling them to purchase potent diet

comfortable working conditions proper working hours leave for leisure recreational

facilities and self respect

Rao (1995) is of the view that productivity is determined by the number of

hours of work and its intensity And undernourished or sick person can not work long

or properly Absence of medical facilities further reduces productivity Increased

expenditure on food to the extent it raises productivity can be termed as investment

Better diet housing and control of communicable diseases have raised the quality of

life everywhere

9

A World Bank (1991) study quoted a text of 1890 of Alfred Marshall who

wrote that lsquohealth and strength physical mental and moral are the basis of industrial

wealth while conversely the chief importance of material wealth lies in the fact that

when wisely used it increases the health and strength physical and mental and moral

of human race By conducting some studies World Bank (1991) in its report

concluded that better health and nutrition raise workersrsquo productivity decrease the

number of days they are ill and prolong their potential working lives In Sierra Leone

a 10 percent increase in calories in-take of farm workers consuming 1500 calories a

day raised their output by 5 percent Similar results have been found among Kenyan

road construction workers By reducing morbidity and debility the malaria eradication

program in Sri Lanka in the 1940s led to a ten percent rise in incomes A study of

Basta et al (1979) on the rubber plantation workers in Indonesia revealed that

treatment of anaemic workers with iron tablets for a period of 60 days resulted in an

increase in productivity by 15 to 20 percent and the per capita cost of these tablets was

$ 008 Levin (1986) found that out put increases by about 10 to 20 percent for every

10 percent rise in haemoglobin level

Rao (1995) mentioned study of Behrman and Deolalikar (1998) who came to

the conclusion that lsquoNutrientrsquo intake might affect productivity without altering

indicators of health status because nutrient changes may be transferred largely to

energy expenditure change including that are productivity related

World Bank (1991) concluded after analysis of household survey data from

nine countries suggesting that economic effects of illness may be substantial An

average adult worker in Peru might expect to be ill 45 days a month and misses about

one day of work as a result in Ghana the corresponding figures were 36 and 13

days In the United States workers aged between 18 and 44 miss on an average one

quarter of a dayrsquos work in a month

If workers are unsatisfied they will quit the organization Quah (1993)

analyzed the studies of human resource development in four countries ie Japan

Singapore South Korea and Taiwan and concluded that comprehensive reforms are

needed in public personnel management in the direction of attracting retaining

10

developing and utilizing competent employees Rao (1995) expressed that people will

be un-satisfied and lose motivation if not properly paid They will quit the

organizations causing increase of turnover and leading to increased expenditure of

selection recruitment and training

From the above discussion it is revealed that HRD is to develop competencies

of the people and improving their health and quality of life by providing them better

share in the income of country or any firm in the form of better salary and other

financial benefits (bonus health allowance education allowance recreation

allowance etc) boasting their motivation by reducing the remuneration gapes between

different categories of people providing them more leisure by reducing working

hours comforting their lives by bettering work places and developing socially by

giving them representation freedom of expression and satisfying them by providing

security of job and removing their fears

For expressing the importance of HRD Tan (1996) quoted the saying of a

Chinese philosopher Guanzi (551 - 479 BC) that

When planning for one year theres nothing better than planting grain

when planning for ten years theres nothing better than planting trees

when planning for a lifetime theres nothing better than planting men

In his own words Guanzi explained that grain is something that is planted once

and produces only a single harvest Trees are planted once but may produce ten

harvests Men are things that are planted once but may produce a hundred harvests

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS

Workers or labor class is the major and most important human resource of any

country and they are developed through better quality and standards of life But

workers remained undeveloped because of being under privileged deprived and

victim of the exploitation of employer Khan (1992) mentioned that labor was

considered as a commodity and was subject to economic laws of supply and demand

11

Conditions of workers remained area of concern for centuries particularly after

the industrial revolution No doubt industrialization as a consequence of industrial

revolution was most forceful process in the known history that brought many

comforts in human life But it is a very bitter fact that this revolution also brought

problem of exploitation of workers who became enslaved to the dictates of machines

and capital owners under their profit motives According to Shafiq-ur-Rehman (2003)

employers exploited workers for maximizing profit Colman (2000) wrote about USA

that the industrial revolution for the first time brought thousands of women and

children in the workforce In New England textile mills used to employ young

unmarried daughters of farmers and these textile lsquomill girlsrsquo often worked 12 to 15

hours a day lived in strictly supervised company boarding houses had to be silent

during work and could be fired for using profane or improper language

Situation is still bad at some places and according to ICFTU (nd) report in

Guatemala in some factories workers usually work for 9-10 hour a day and paid

between $1 and $2 per day and sometimes they are forced to work as long as 18 hours

In some factories to meet the demand of large orders workers are given

amphetamines so that they can work 60 hours without stopping

Similarly Amnesty International (2002) also reported that in China the plight

of workers is serious and there are widespread violation of international standards

causing serious injuries and deaths

One reason of these hardships in the words of George (2004) is that a majority

of working people possess labor as their only resource to carry on with their lives

There was a need of a system encompassing institutions dedicated for the

protection of workers and solution of their problems as well as to maintain industrial

peace

Therefore institution appeared in the form of labor unions and system appeared

in the form of Industrial Relations

12

Industrial relations is a tripartite system having government employers and

labor unions as its three components The Wikipedia defines this as

ldquoField of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union

Governments set the framework for labor relations through legislation and

regulationrdquo (Wikipedia-a)

221 Emergence of Labor Unions

The exploitation of workers led them to unite for the solution of their problems

at a platform This platform was labor union In the words of Brohawn (nd) the union

was democratic societys original answer for addressing injustices at the workplace

which attended the birth of the Industrial Revolution In fact unionism was born to

bring social and economic justice for working people Ehrenberg and Smith (1985)

asserted that labor unions are the organizations whose primary objectives are to

improve the pecuniary and non pecuniary conditions of their members Workers

expected their unions to fight for their rights by organizing and financing strikes

According to Shafiq-ur-Rehman (2003) workers formed unions which had to adopt a

confrontational approach towards the employersAbout influence of unions Thomas

(1999) wrote that trade unions are a large organized group in civil society which

brings a unique contribution to the development of community because of direct

involvement with economic systems of production and distribution They also

influence the course and content of employment and social and economic policies

What were and still are the problem of union making are discussed in

following lines

222 Unionization Problem

Emergence of unions in every country and society was and is still a difficult

evolutionary process Literature has shown that organization of workers was not an

easy task and unions had to bear the wrath of state and employer and those whose

13

interests were against unionization Unionization is the democratic right which has

been acknowledged in UNO declaration of human rights and by ILO conventions

2221 Opposition of unionization by state

Rizvi (1973) a Pakistani author wrote that government is one of the important

parties in the industrial labor relations especially when there is high elasticity of

demand but low elasticity of supply of labour But what has been the role of

governments is narrated in lines below

Ghayur (1996-a) wrote about Pakistan that State has also erected barriers by

framing laws discouraging to unionization to maximum extent by imposing difficult

conditions to fulfill particularly in registration Government of Pakistan has

established Export processing Zone (EPZ) in Karachi which is exempted from the

application of certain labor laws especially the right to form a union and to go for a

strike Ghayur also wrote that in Pakistan unionization and collective bargaining is not

permitted to all public sector employees and activity has been brought under Essential

Services Act in many public sector organizations

According to report on lsquoHuman Development in South Asia (2003)rsquo in

Pakistan lsquothe Essential Services Management Act of 1952rsquo was the first hurdle in the

history of the unionization process of Pakistan It restricts the freedom of association

and collective bargaining rights of various groups of workers Employees of Pakistan

International Airlines (PIA) Pakistan Television Corporation and the Civil Aviation

Authority (CAA) as well as workers in postal teaching electric supply and radio

stations can form unions but cannot join a strike The workers in the EPZs are also

denied their trade union rights in Pakistan Export Processing Zones Authority

Ordinance (EPZAO) of 1980 and Export Processing Zone Rules (EPZR) of 1982

exempt the workers in EPZs from the provisions of IRO Workers in EPZs cannot

establish trade unions bargain collectively or organize a strike

Similarly Pakistani researchers Abbas and Hussain (2007) wrote about

Pakistan that a range of restrictions deter the activities and effectiveness of union

organizers One of such laws that restrict trade union activities is the Essential

14

Services Maintenance Act of 1952 (ESA) which includes government services and

State Owned Enterprises (SOEs) like power generation and transmission energy

production ports and the state-owned airline This law generally invoked to ban

strikes and is also used to hold back the right to collective bargaining

Human Rights Watch (1998) reported that in China making of independent

trade unions was illegal union makers were suppressed by the government and their

leaders were imprisoned There is one official union the All China Federation of

Trade Unions (ACFTU) which is under the control of the Communist Party which

appoints all union officials All workplace unions must be affiliated to the ACFTU

Amnesty International (2002) also reported that in China independent labor unions are

not permitted and All China Federation of Trade Unions (ACFTU) a government

controlled trade union is the only national body which governs trade unions activity

but workers had been struggling to create independent trade unions as an alternative to

the ACFTU since the late 1980s For example in May 1989 groups of workers in

various cities formed Workers Autonomous Federations (WAFs) but they were short-

lived and banned by the authorities and later in a crackdown on 4th June 1989

organizers were arrested and prosecuted on counter-revolutionary charges Since

1989 workers made other attempts to form independent trade union but they were

again jailed In 1994 workers who attempted to set up the League for the Protection of

the Rights of Working People (LPRWP) were arrested in Beijing

Bernard (1998) reported about USA that Supreme Court decisions rolled back

union and worker rights as well as amendments to labor law have restricted union

organizers while freeing management to penalize workers who attempted to exercise

their rights

UNDP (2000) in its report quoted that ICFTU in a Press Release dated 6998

reported that in 1997 nearly 300 trade unionists were killed for attempting to organize

labor unions 1681 were tortured or subject to physical mistreatment 2329 were

detained by police or military units and nearly 3500 were intimidated Press release

also alleged that even in United States an estimated 10 percent of workers

15

campaigning for unions are illegally fired 21427 workers lost their jobs in year 1998

for union activities

UNDP (2000) report further revealed that in developed countries despite the

force is not employed as frequently as in the third world many western nations still

have strong pro-corporate factions that have tried to render labor unions powerless

through legislative channels As Kremer and Olken (2001) expressed that even in

USA union formation is not so smooth and under Federal law covering most

industries if 30 of workers sign a petition calling for an election a certification

election supervised by the NLRB is held A union is recognized if more than half the

workers vote for it

Similarly Amnesty International USA (2005) reported that in Philippines

despite the government has ratified 22 of the International Labor Organizations (ILO)

conventions on labor standards including convention No 87 and No 98 the ILO has

received several complaints of non-compliance with these conventions Complaints

including instances of alleged extra-judicial execution of trade union leaders have also

been received

Even after union formation governments hamper the smooth functioning of

unions by different means DeSilva (1997) reported that South East Asian countries

took measures to restrict trade union actions and control unions as well as to avoid

union multiplicity However in some countries government has favored unionization

Government in Thailand for development of sound workplace labor relations

encouraged employers and employees and their organizations by initiating a program

Similarly in Japan workplace relations have been facilitated by the enterprise-union

system because many issues relating to competitiveness needed to be addressed at the

enterprise level and it has also been realized that competitiveness can be enhanced

through sound labor relations Nathanson and Associates (1999) wrote that in Israel to

avoid collective agreements the government as an employer is reducing the

proportion of permanent tenured employees and hiring more and more of its

employees through temporary manpower agencies in the public service and it is very

difficult to organize these temporary workers Waisgrais (2003) reported that in

16

Argentina attempt was made by the state to dismantle the trade union apparatus by

measures such as the suspension of all union activity the abolition of negotiations the

revocation of the right to strike and the removal of social work from the unionsrsquo

sphere of activity

2222 Opposition of unionization by employer

Employers in some countries lose no opportunity of exploiting the workers in

the form of paying low wages and other facilities but unions offer resistance and try

to protect rights of workers Employers put hurdles in the work of unions at the time

of union registration and defame the unions by charging that unions are corrupt It has

been elaborated in lines written below by quoting relative researches

Mills (1994) wrote that management has been hostile to unions during most of

American history American employers mostly opposed the growth of unions often

with the help of the law and the courts and in periods of conflicts federal and state

governments more frequently supported employers instead of unions

Brohawn (nd) expressed that unions are considered by most business

executives to be the kiss of death Small businesses in particular fear unions as an

outside force antagonistic to the interests of the company

Khan (1992) wrote about Pakistan that when worker gets job he becomes

reluctant to take part in unionrsquos affairs for fear of being victimized by management so

a common worker does not care to join a trade union So he concludes that in Pakistan

labor is still unorganized and has not been able to develop a sense of unity

Ghayur (1996-a) also analyzed that in Pakistan every effort was made in

private sector to resist union formation in private sector so if employer does not favor

the formation of union the matter can be prolonged for years Even foreign

companies resist as in Pakistan union of Korean Company (Daewoo) constructing

Motorway could not be registered despite of their best efforts Shafiq-ur-Rehman

(1973) pointed out unsatisfactory relationship between participants of industrial

relations in Pakistan and other developing countries and asserted that attitude of

17

employer is still very authoritative and paternalistic requiring a higher degree of

obedience and loyalty from their working force Their practical strategies have been to

insist on and claim all economic and non economic rights and for get about their

duties

Human Rights Watch (1998) also referred that South Korean companies

operating in Asia have been accused from all quarters of violating workers rights in

Vietnam China and Indonesia The Daewoo Construction Company did not allow the

free functioning of trade unions The case of the Daewoo Motorway Project in

Pakistan which began in 1991 where ten thousand employees were working on the

motorway between Lahore and Islamabad had been reported of use of violent physical

abuse against workers A complaint for this was lodged with the ILO

Employers are hampering the unionsrsquo activities in many ways as Hyman

(1999) expressed that Management always had hostile attitude towards unions In

some countries there has been a growing unwillingness by employers to accept trade

unions as collective representatives of employees while in other countries if collective

bargaining has survived its scope has been reduced and managements have

established new forms of direct communication with employees as individuals In a

report about Lithuania Dovydeniene 2002) wrote that employers strictly forbade their

employees to join unions and threatened to dismiss anyone who showed initiative or

took part in any union activity Workers threatened by unemployment had little

choice in the face of such exploitation

Bray et al (2005) asserted that according to AWIRS (Australian Workplace

Industrial Relations Survey) 1995 overall 88 of managers indicated a preference not

to deal with trade unions and only 7 of unionized workplaces believed that unions

effectively represented the interest of their members

223 Why Workers Join Unions

Bray et al (2005) wrote that people join unions because of dissatisfaction with

economic aspects of job a desire to influence those aspects of the work environment

18

through union-oriented means and a belief that the benefits of unionism outweigh the

expected costs

Holley jr et al (2001) expressed that employees join unions when they are

dissatisfied with physical characteristics of workplace low wages lack of benefits and

believe that unions will help them to achieve them job related conditions Like all

formal organizations unions also satisfy the membersrsquo need by providing means

enhancing a sense of identity and maintaining self-esteem They satisfy the workersrsquo

need of affiliation belonging and status that is at higher level than improved wages and

working conditions

Aidt and Tzannatos (2001) asserted that the desirability of unions depends on

many factors including (a) what unions do (b) how collective bargaining is

organized and (c) the effectiveness of dispute resolution mechanisms

According to Shafiq-ur-Rehman (2003) reasons behind workersrsquo joining

unions are lsquohigher wages and better working conditionsrsquo lsquojob securityrsquo lsquosocial needsrsquo

lsquoPeer groups pressurersquo and self fulfillment

Freeman (2007) analyzed that 70 of workers in 2005 believed that employers

fell short in providing regular cost-of-living raises to employees So workers tendency

towards unions has increased during last decade Freeman on the basis of his

researches with his companions based on WRPSs (Worker Representation and

Participation Surveys) 1990 and 2006 concluded that workers today want as much or

more of a voice in their workplace than they did in the 1990s and want a workplace-

committee form of representation The proportion of workers who want unions has

risen substantially over the last 10 years and workers want unions more than ever

before Because there are substantial gaps between workersrsquo desire to influence the

decisions and their actual influence in several important features of workplaces Bread

and butter gaps relating to issues of benefits and pay are greatest followed by the gaps

of training issues The gap between issues of what workers want in deciding how to

organize their work is smallest

19

The issue at the heart of this paper is to discuss the role of unions in making

efforts for solving the problems of workers in relationship with employers and in

relationship with state or government To avoid this paper from becoming too lengthy

actual research has been restricted to determine the efforts of unions only and not the

quantitative measure of their outcome

23 UNIONS ROLE FOR WORKERS BENEFITS

There have been difficulties in union formation and after formations unions

have also faced a lot of problems while running their business Now it is to see what

the role has been played by unions for benefit of workers and to what extent unions

succeeded therein In this regard researches have been conducted in different countries

or regions in the past which show struggle of respective unions for benefits of workers

such as rise in wages decrease in wage inequalities improvement in working

conditions and living standard betterment in quality of life reduction of working time

job security more paid leaves better pension facility employer sustained insurance

facility health care and health insurance and better health and occupational safety

conditions workers training and education facilities workers family welfare and

cooperative facilities for workers giving the workers awareness of their rights

reducing the fear of employer promulgation of workers favoring laws getting the

enforcement of these laws etc and during this what attitudes unions adopted

aggressive or cooperative constructive or conflicting selfish or sacrificial peaceful or

militant Researches are here to support and endorse these points

According to Guisinger and Irfan (1975) government intervention trade unions

and employer himself are responsible for wage increase

Sennholz (1983) asserted that now it is acknowledged that all labor

improvements are an achievement of the combined efforts of labor legislation and

union activity The credits for this goes to humanitarian legislators and courageous

union leaders for phenomenal rise in wage rates reduction of daily hours of work the

disappearance of child labor the limitation of woman labor and many other results

20

Khan (1992) narrated that trade unions protect material standards of living for

their members and also achieve security of service status in society and self respect

for themselves

According to studies of Nathanson et al (1999) in Israel Inoue (1999) in Japan

and Fahlbeck (1999) in Sweden in socioeconomic field unions rose to the challenge

of meeting the changing requirements of an industrial society for example

established themselves as credible partners and provided a variety of services to

members such as mutual aid credit insurance housing and consumer services mostly

through cooperatives linked to union membership

Jose (2000) concluded that unions played a conduit role for turning economic

growth and prosperity to workers in the form of improved standards of living and the

benefits of collective bargaining in terms of wage and non-wage benefits particularly

as reduction of working time Unions also helped to maintain a wage structure which

minimized income disparities between workers He further expressed that trade unions

are to lead an initiative for a social minimum wage consisting of the right to income

security (security of job) and other entitlements such as education health shelter and a

safe environment (workplace) In Scandinavia the pre-eminent position enjoyed by

unions in terms of membership and influence over public policies was anchored in the

services that unions provided to their members

According to Hirsch and Schumacher (2000) on balance unions are detrimental

to company performance and economic efficiency but in addition to unionrsquos negative

effects unionrsquos representation and collective bargaining provide workers with varying

degree of workplace democracy collective voice monitoring of working condition

protection from discrimination and enforcement of contractual provisions

Lovell et al (2002) using data of Current Population Survey US Census

Bureau found that workers in the retail food industry who are union members have

significantly higher wages higher rates of health insurance coverage larger

employment-based contributions to health insurance premiums and higher rates of

pension coverage than non-union workers Full-time and part-time workers women

and single mothers in the retail food industry all benefit from union membership

21

Shafiq-ur-Rehman (2003) wrote about Pakistan that now role of labor unions is

broad based and in additions to their collective bargaining role unions are involved in

social educational and recreational activities He also expressed that unionization can

the morale and motivation of the work force by improving the nature of jobs or by

changing workersrsquo perception of their jobs

Robles et al (2004) are of the view that unions are also promoters of social

capital in the economy by representing workersrsquo petitions exerting a pressure aimed

to improve conditions at the workplace and acting as employeesrsquo voice easing

communication between workers and employer which leads to help degree of job

turnover consequently reducing training cost of new employees Robles et al asserted

about unionsrsquo role for wages that empirical evidence has shown that unions exert an

upward pressure on wages

231 Wage Rise

The difference of wages between unionized and non-unionized workers is

lsquounion wage premiumrsquo and a major reason of workersrsquo joining of unions Pencavel

(1995) asserted that a primary concern of labor unions is to raise the wages of the

workers they represent because they act as wage-makers rather than wage takers this

role identifies unions as monopolies and according to Bryson (2001) union recognition

by employer for pay bargaining is basis for union influence in the workplace

According to Aslam (1982) a Pakistani researcher wages are of great

significance in an economy because they represent income to the workers cost to the

business men and are a major source of their purchasing power and have an important

bearing on the level of economic activity

Freeman and Medoff (1984) concluded that wage effect of union increased in

the 1970s when unionized workers won wage gains exceeding those of their nonunion

peers It is greater for less educated than more educated workers for younger than for

prime-age workers and for junior than for senior workers and it is greater in heavily

organized industries and in regulated industries than in others As a result of the

existence of trade unions in some unionized firms workers in nonunion firms trying to

22

avoid unions through positive labor relations obtain higher wages and better

working conditions because of the threat of unionism

As per findings of Cassoni et al (2002) the unions increase both wages and

employment and promote investment because the firms substitute labor by capital

Below mentioned studies reveal quantitative unionsrsquo efforts in wage rise or

mitigating wage salary differences

Aidt and Tzannatos (2001) referred that workers either union members or

covered by collective agreements on average get a wage markup over their non

unionized (uncovered) counterparts which is almost 15 percent in the United States

and in most other industrial countries is 5 to 10 percent It appears high in Ghana

Malaysia Mexico and South Africa but relatively low in the Republic of Korea

Holley jr et al (2001) quoted that unionsrsquo wages ranged between 10 and 15

percent higher than non union wages They further analyzed that by 1970s the union

wage differential climbed to 20 to 30 percent This impact was more on wages of blue

collar younger and less educated employees

Belman and Monaco (2001) using the data source of Current Population

Survey 1973-1995 of US Census Bureau found that union membership remains an

important determinant of wages with members earning 18 to 21 more than their

non-union counterparts The earnings of truck drivers fell by 21 between 1973 and

1995 and the primary sources of wage decline and increased wage inequality have

been deregulation a declining manufacturing wage and declining union membership

Blanchflower and Bryson (2002) concluded that both in UK and USA despite

union membership is declining unions are able to raise wages substantially over the

equivalent non union wages and unions in the countries Australia Austria Brazil

Canada Cyprus Denmark Japan New Zealand Norway Portugal and Spain are also

able to raise wages by significant amount and estimates from their 17 examined

countries were averaging 17 percent However in countries like France Germany

23

Italy Netherlands and Sweden where union wage settlement spill over in to non-

union sector there is no significant union wage differential

Klaff and Ehrenberg (2003) using the data source of survey conducted in USA

by the Association of Higher Education Facilities Officers 1997-1998 investigated that

union coverage affected staff salaries at 163 US colleges and universities and

estimated a union salary premium of 9- 11

Cleveland et al (2003) using Survey data for Canadian childcare workers in

1991 found that the union impact on wages was 15

Mishel and Walters (2003) found that unions raise the wages of unionized

workers by roughly 20 and raise total compensation by about 28 They also found

that in USA according to estimates from household surveys in 1990s there was a union

wage premium ranging from 15 to 25 The unionizations impact on wages goes

beyond the workers covered by collective bargaining to affect nonunion wages and

labor practices eg in USA non-unionized high school graduates earned 20 to 55

higher wages in industries with 25 unionization than they did in completely non-

unionized industries

Hirsch (2003) also reported that in one study in 2001 the ECEC data showed a

large gap in benefits between union and non-union workers and hourly compensation

for nonunion workers was $1998 whereas compensation for union workers was $

278 Unions not only raise wages of unionized workers but also affect nonunion

wages albeit to a far lesser extent than union wages

Kang (2003) in a study in Singapore estimated approximate union wage effect

in the range of 02 to 32 percent

Waisgrais (2003) also narrated in a report about Argentina with reference to

several studies regarding the role of the unions and in particular to collective

bargaining that workers covered by collective agreements receive higher wages than

those who are not

24

Knox 2004 wrote that unionized workers are still doing well despite the

flagging numbers as in USA with 8 of workers in the private sector unions still

exercise real power over contracts and there are substantial wage mark-ups In Britain

that isnt the case theres no wage mark-up anymore

However according to several studies unions could achieve either marginal or

no improvement in wages Inoue (1999) revealed that in Japan the automatic annual

pay raise system is widely adopted and wages rise according to years of service

which serve as an indicator for skills In terms of real wages unions have gained

marginal improvements during the 1990s

Similarly Anyemedu (2002) found that in Ghana government considers wage

restraint as a means of attracting foreign investment Hence the government and

employers have succeeded in installing the capacity to pay of employers as virtually

the only factor to be taken into account in wage determination

232 Reduction in Wage Inequality

Labor unions also exert efforts for increasing equality and reducing

discrimination in wages of workers

Freeman and Medoff (1984) opined that unions raise blue-collar earnings

relatively more than white-collar earnings thus reducing inequality between those groups

Unions by adopting pay policies that limit managerial discretion in wage-setting reduce

inequality among workers in the same establishments and among different establishments

A study of The World Bank (1995) revealed that unions eliminated discrimination

of income between workers so during a study in the Republic of Korea in 1988-90 it was

found that unions placed great value on wage equalization and as a result the degree of

wage dispersion in the unionized sector was 52 lower than in the non-unionized sector

In Mexico union action also helped to reduce discrimination and another study using wage

data for 1989 concluded that in the nonunion sector men enjoyed a 175 wage

advantage over women with identical skills and experience but there was no significant

wage differential between men and women in the unionized sector Similarly the study

25

found a significant wage disadvantage for indigenous people in the non-unionized sector

whereas no discrimination in firms covered by trade unions

Stiglitz (2000) Senior Vice president World Bank mentioned admiringly the

role played by organized labor in developed countries in stabilizing industrial

relations preserving firm-specific knowledge and organizational capital and

mitigating the income inequalities

Aidt and Tzannatos (2001) also concluded that unions reduced the wage

differences particularly between unionized workers and skilled and unskilled workers

Card et al (2003) reported similar result that within workers groups of same

skill for union workers wage inequality is always lower than nonunion workers

233 Fringe Benefits

Sennholz (1983) stated that most people expect more from their work than

wages These things are fringe benefits and provide additional remuneration to

employees in the form of vacation and holiday pay sick pay the cost of pensions and

employer contributions to various benefit systems

Cleveland et al (2003) found that the union impact on fringe benefits was in

line with union effects found in other better-compensated work and they found

substantial returns to education occupational level and firm-specific experience

George (2004) concluded that the demand of workers for social justice is

justified and workers are entitled to an equitable distribution of the nationrsquos wealth on

the reasons that labor is an equal partner with capital and management and laborers

are the primary contributors to economic growth of a nation So the workers should be

paid a fair living wage for their labor and certain fringe benefits such as free

healthcare paid holidays and job security George reported that several claims such as

bonuses overtime payments working hours shift duty allowances gratuities

uniforms transport allowances and housing vehicle loans are negotiated between the

union and the employer

26

Carty (2003) referred that in Mexico Consequence of replacement of CROC a

government backed union by an independent union workers receive a wage increase of

10 and a 5 increase in cash benefits and attendance bonuses Workers now make

up to 40 more pay than they were making under the old contract

234 Job Security and Employment

As per analysis of Inoue (1999) for Japanese trade unions safeguarding their

members from any threat of unemployment has a special importance so Japanese trade

unions do not accept lay-offs During the 1950s and1960s there were many protracted

labor disputes caused by threatened dismissal Trade unions lost most of these big

disputes but the losses incurred by the companies were also enormous Therefore in

Japan there is a tacit agreement between labor and management to avoid massive lay-

offs as far as possible This agreement is manifest in employment adjustment practices

during the recession in the 1990

Wong (2000) expressed that employment security and fair distribution of the

benefits of economic growth have been the primary concerns of the labor movement in

Singapore

Farber (2001) quoted the Freemanrsquos analysis that ldquoworkers in union jobs are

less likely to quit reflecting the higher level of wages and benefits this is due to

unions provision of mechanism for lsquovoicersquo as an alternative to lsquoexitrsquo in addressing

workplace concernrdquo

Aidt and Tzannatos (2001) also concluded that in unionized firms voluntary

job turn-over is lower and the job tenure is longer The evidence on this finding from

Australia Japan Malaysia the United Kingdom and the United States seems quite

robust On the other hand layoffs particularly temporary layoffs are more frequent in

unionized firms than in non-unionized ones

According to Lee et al (2001) Labor unions in Korea strongly opposed the

introduction of redundancy lay-off by massive nation wide strikes

27

Unions also give courage and awareness therefore according to Mishel and

Walters (2003) Union members have significantly less anxiety about losing their job

or suffering other employer-imposed penalties for taking leave

ILO (1999) reported that the trade unions cooperated in Singapore with the

state and the employers in efforts to maintain full employment to set wages at levels

which maximize employment therefore unions have accepted temporary wage cuts in

order to save employment

Vedder and Gallaway (2002) asserted that unions are associated with lower

rate of growth in income and jobs Occupations and industries with high rates of union

density have had less vibrant job growth in recent decades Widespread unionization

of an industry is often associated with initial sharp declines in employment as the

steel industry demonstrates

Addison (nd) concluded from survey in UK and reported a retarding role of

unions in employment growth as unionized establishment in 1980s tended to grow 3

percent less per year than their non unionized counterparts Union plants were more

likely to be shedding labor and unions induced reduction in employment growth in

26 for 1989-90

To overcome loss of unemployment and slow growth in employment caused

by unionization unions played role in launching unemployment insurance schemes

and unemployment benefits Katz et al (1993) reported that unions in Sweden and

Denmark have played a constructive role in the administration of unemployment

benefits

Bernhardt et al (2002) studied the Wisconsin Regional Training Partnership

(WRTP) which is an association of 125 employers and unions dedicated to family-

supporting jobs in a competitive business environment and found that the WRTP

members have stabilized manufacturing employment and contributed about 6000

additional industrial jobs to it over the past five years

28

According to Mishel and Walters (2003) unionrsquos representation increases the

likelihood of an unemployed worker in a blue-collar occupation receiving

unemployment insurance (UI) benefits by approximately 23 They also referred that

role of unions is pivotal considering unemployment insurance acts as a stabilizer for

the economy during times of recession

Unions have also operated Unemployment Insurance themselves as Zutavern

(2005) reported the existence of unions operated voluntary unemployment insurance

schemes in Denmark Finland and Sweden

Budd and McCall (2004) using and analyzing data source of January 1996

Current Population Surveys Displaced Worker Supplement of US Census Bureau

found that eligible blue-collar workers laid off from union jobs are approximately 23

more likely than comparable nonunion workers to receive unemployment insurance

benefits

235 Time Reduction (Duty Hours)

Unions have struggled to minimize the duty time and working hours which

were once more than ten hours in a day or more than 70 hours a week (even more than

3000 hours a year) in 19th century But in 20th century are 8 hours a day or 40 hours a

week and in some countries even less than this However the level of success is

different in different countries

Colman (2000) reported that in USA in 1835 General Trade Unions in a

number of cities led a successful general strike to shorten the working day from

fourteen hours or more to ten hours and in Philadelphia a group of Irish laborers

struck for time reduction and marched through the city chanting lsquosix to sixrsquo In same

year in Dover New Hampshire girls and boys struck the cityrsquos mills and won a

reduction of hours from 135 to 12 hours per day Their effort succeeded after a

century and time was reduced to eight hours As Sennholz (1983) wrote that in USA in

1938 the federal government passed Fair Labor Standards Act which imposed

minimum wage rates provided for a 40-hour week and also allowed for overtime

work if paid at time and one half and it is public opinion that all labor improvements

29

are an achievement of the combined efforts of labor legislation and union activity ILO

(1999) reported that unions in Germany have negotiated for a 35 hours week in some

sectors and regions early retirement schemes part-time work educational leave and

family leave

Japanese Labor Union Rengo presented a reduction in working hours and

adoption of policies favoring labor Rengo sought the introduction of a five-day week

In 1993 Rengo adopted the policy delineated in the New Medium-Term Working

Hour Reduction Plan with the target of 1800 working hours by fiscal year 2000

(Inoue 1999)

This time reduction was prevailing everywhere at large extent as Aidt amp

Tzannatos 2001) wrote that hours worked is lower among unionized than non-

unionized workers This is true for both total and normal hours

Buchmueller et al (2001) also found that union workers work fewer hours per

week than non unionized workers and this difference was 3 hours from 1972 to 1984

and after 1992 this difference is one hour per week

Lee et al (2001) pointed out that in 1997 in Korea flexible working hour

system was allowed with maximum of 48 hours per week cycle with the condition that

one week average will not exceed 44 hours or 8 hour a day

236 Payment of Over Time

Aidt and Tzannatos 2001) pointed out that unionized workers are more likely

to get paid for the overtime work that they do

According to Mishel and Walters (2003) employer compliance with the

overtime pay regulation rose sharply with the presence of a union because unions

often report violations to enforcement agencies

237 Paid Leaves

Budd and Mumford (2001) asserted that in UK trade union is one possible

institution for improving work-life problem and a primary mechanism for trade unions

30

in this regard is to bargain for additional employer-provided family friendly policies

including parental leave and paid family leave Unions appear to positively affect the

provisions of parental leave and job sharing options

Union workers have one week more vacation time than non-union workers

Union workers generally spend on leave slightly more time for illness their own or

illness of others which is approximately 14 week per year as compared to one week of

non-union members (Buchmueller et al 2001)

Aidt and Tzannatos (2001) stated that fringe benefits are more commonly

found among unionized workers than among non-unionized ones (in Australia Japan

Malaysia the United Kingdom and the United States) Benefits can include severance

pay paid holidays paid sick leave pension plans and so on

Mishel and Walters (2003) expressed that union workers also get more paid

time off which includes having 266 more vacation than nonunion workers and

according to another estimate the union workers enjoy 143 more paid time off

including vacations and holidays

238 Working Condition

Working conditions are of very importance for workers because they affect

their performance and productivity Khan (1992) wrote that an industrial worker

spends at least 8 hours a day three hundred days a year and about forty to fifty years

of his life period at workplace If the lives of the industrial people are generally

healthy happy and agreeable it is necessary that working conditions should be

healthy congenial and attractive and work itself should be made as interesting as

possible and relations between workplace workers and management should be

friendly and cooperative Robles et al (2004) asserted that enhancement of working

conditions in turn may increase inputsrsquo productivity Unions exert efforts for pleasant

working conditions

31

Thomas (1999) stated that trade union movement in South Korea fought for

basic labor rights and improvement of working conditions and it also has widely

known assertive role in the processes of re-structuring

Wong (2000) narrated that in Singapore the fundamental role of trade unions

remained to ensure fair wages and working conditions and to improve the standard of

living and quality of life of workers

239 Health Care and Social Security

Unionsrsquo role in securing health safety and welfare benefits for employees has

been found in following studies

Weil (1992) in his study made a comparison of OSHA enforcement in union

and nonunion construction sites and found that union sites face higher probabilities of

inspection and receive greater scrutiny during inspections than do comparable

nonunion sites

According to Buchmueller et al (1999) the role of US trade unions in

obtaining health and welfare benefits for their members dates to the 18th century and

in Britain a greater inducement for workers to join the union was support in sickness

or unemployment They also reported that in USA due to collective voice and other

factors union effects on the provision of health insurance are likely to be large

therefore unionized workers are more likely than non-unionized workers to receive

health benefits and the difference is depicted by higher probabilities of insurance

offers and higher take-up rates for union workers They further wrote that plans

offered by union establishments are about 20 percentage points more likely to be fully

financed by employers (494 percent vs 296 percent) than employers of non union

establishments They also asserted that in health plans in unionrsquos establishments

proportion of health insurance premiums paid by employers was 14 percent higher in

union settings Buchmueller et al found that in USA union establishments are 153

percentage points more likely to pay the full premium of insurance for family

coverage as compare to non-union ones (276 percent vs123 percent)

32

Stiglitz (2000) admitted that unions have played role in Health and safety

standards and had played also role in improvement of working conditions for workers

According to another study by Jose (2000) Histadrut a trade unions of Israel

grew in strength until the early 1990s with an impressive membership based on the

provision of services notably health care

According to Farber (2001) union members receive a larger fraction of their

compensation in the form of health insurance and pensions

Budd and Mumford (2001) also reported that individuals represented by a trade

union are more likely to receive traditional fringe benefits such as health insurance and

retirement plans

Adji (2002) expressed that in the Niger the union representing employees

working for the national social security scheme (CNSS) is preparing a social fund

designed to provide a supplementary pension and to pay the 20 per cent of medical

expenses which are not covered by the national scheme In Niger the USTN is

developing a health insurance project

According to Hirsch (2003) unionsrsquo workers receive more compensation for

risks than non-union workers

Mishel and Walters (2003) narrated that ldquoUnions had provided labor

protections for their members in three important ways (1) By identifying where laws

and regulations are needed and getting these laws enacted (2) Providing information

to members about workers rights and available programs and (3) By encouraging

their members to exercise workplace rights and participate in programs by reducing

fear of employer retributionrdquo Mishel and Walters concluded that unionized workers

are given employer-provided health and pension benefits far more frequently as

compare to nonunion workers and also provided with better paid leave and better

health and pension plans Unions also reduce wage inequality between workers and

workers groups because they raise wages more for low and middle-wage workers than

for higher-wage workers more for blue-collar than for white-collar workers and more

33

for workers who do not have a college degree Union members are 60 more likely

to file an indemnity claim than nonunion workers They also mentioned findings

quantitatively that 835 of unionized workers have employer-provided health

insurance and only 62 of non-unionized workers have such a benefit Unionized

workers are 244 more likely to receive health insurance coverage in their

retirement Employers with unionized workforces also provide better health insurance

paying an 111 larger share of single worker coverage and a 156 greater share of

family coverage and deductibles for unionized workers are 18 less They concluded

that in USA implementation of OSHA seems highly dependent upon the presence of a

union at the workplace

ILO (2005) reported that every year some 22 million people in the world

succumb to work related accidents or diseases so it is the daily grass root work of

labor unions to ensure the compliance of health and safety regulations at work

2310 Post Retirement Benefits (Pensions)

Unions also have an eye on the life of workers after the end of service For this

they exert efforts either in the form of arranging employer contribution or launch their

own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is

shown in the several researches where unionized workers receive better pension

options and opportunities

Freeman and Medoff (1984) opined that unions alter the entire package of

compensation substantially increasing the proportion of compensation allotted to

fringe benefits particularly to deferred benefits such as pensions and accident and

health insurance which are favored by older workers These changes are on balance

to be viewed as a social plus

Bernard (1998) was of the view that trade unions in USA had been the most

successful labor movement in the world by enjoying the highest wage premium and

winning benefits like pensions health care and paid vacations for their members that

in other industrial countries working people could win only through political and

industrial action

34

Holley jr et al (2001) expressed that in 1999 unionized US employers per

hour paid benefit costs averaging $ 853 compared to non-union employer costs $466

These costs include pension payments payments for time not worked (such as

vacations sick leave paid rest and lunch breaks) insurance costs and legally required

payments (social security unemployment compensation)

Buchmueller et al (2001) reported that in 1983 union workers were nearly

twice as likely to participate as compare to non-union workers in an employer-

sponsored pension plan (766 percent vs 388 percent) and between the years 1988 to

1993 the unionrsquos effect on employer provision of retiree benefits increased

substantially and the unadjusted union effect rose from 101 percentage points to 167

percentage points

Similarly Mishel and Walters (2003) wrote that 719 of unionized workers

have pensions provided by their employers while only 438 of nonunion workers

enjoy this facility Thus unionized workers are 539 more likely to have pension

coverage

Ebbinghaus (2002) found that in Europe trade unions have gained or

enhanced their collective bargaining role in the area of private pensions in addition to

mandatory state pensions

2311 Training Opportunities

According to some researches unions are also taking interest in workers

training education and awareness either pursuing government or employers to arrange

training or arranging training programs themselves to build their skill and enhance the

earning capacity of workers

Therefore Aidt and Tzannatos (2001) wrote that unionized workers tend to

receive more training than their non-unionized counterparts especially company-

related training

Wong (2000) stated that in Singapore unions urged employers to invest in

training of workers and also negotiated training clauses in collective agreements and

35

sought to ensure higher subsidies from SDF for training of lower- skilled lower-

income workers She further wrote that NTUC and affiliated unions urged workers to

enhance their skills as a means to ensure employment security by keeping pace with

changing job requirements and to increase their earning capability in the longer term

In December 1996 to help workers to remain employable throughout life by providing

nationally certified skill training NTUC also approached employers to sponsor their

employees for skills upgrading programs On 30th June 1999 a total of 288 companies

had committed 21800 workers for SRP programs in five general launches and nine

sectoral launches since December 1996

Katz et al (1993) wrote that in many countries unions are involved effectively

in vocational education programs so Adji (2002) reported that in Niger The USTN is

running a project to provide low-cost training to workers and one of the unions is

organizing and training workers in the sectors which it represents In January 1999 an

international cooperation project was launched (ILODANIDA) with the aim of

supporting the efforts of USTN and CNT to provide workersrsquo education in the

informal sector The USTN is also running a training school and an agricultural

project

Booth et al (2003) using data of British Household Panel Survey 1991-96

found that union-covered workers were more likely to receive training and also

received more days of training relative to non-covered workers Among workers who

received training those with union coverage enjoyed greater returns to training and

higher wage growth than did those without

Shafiq-ur-Rehman (2003) mentioned about Pakistan that capitalist

entrepreneurs including the past governments have been least interested in

development and training but this situation has improved now and many employers

with encouragement from Skill Development Fund are actively training their workers

and provide all facilities to trade unions

TUC (2006) in a briefing paper reported that union presence has a significant

impact on the incidence of training Analysis of the 2003 Labor Force which showed

that 39 of union members had been engaged in some training in the previous three

36

months compared to only 26 of non-unionized employees TUC also reported that

employees get more training when the issue is negotiated with employers by unions

rather than employers simply consulting with unions about the organizations training

strategy TUC referred research by Francis Green 1996 which demonstrated that

unionized workplaces were 17 more likely to have a training centre and 11 more

likely to have a training plan TUC referred other studies such as of Heyes et al

(1998) showing that training is more likely to deliver benefits to members when

unions not only secure recognition from the employers but also play an active role in

decisions about what is provided and Metcalfs research who found that the pay-off

from engaging in training is also much greater for union members than it is for non-

unionized employees For male union members the post-training wage was 21

higher than the pre-training wage but the corresponding increase for non-unionized

male employees was only 4

Addison (nd) wrote that there are a number of theoretical arguments

suggesting that unions may stimulate training The British work on determinants of

training has generally reported positive effects He reported positive relations of

unionsrsquo recognition with the incidence of training and union recognition also leads to

increased hours or days of training

A study of Boheim and Booth (2004) showed positive relations of union

recognition with training in private sector

2312 Workersrsquo Education

Fahlbeck (1999) reported that in Sweden the extensive training and education

programs conducted by virtually all unions LO for example has a wide range of

educational programs and runs several schools Anyemedu (2002) also reported that in

Ghana the TUC has made the education of its members one of its priority concerns

The participants of conference on sustainable development (CSD 2001) evidenced it

by acknowledging that trade unions have developed capacity for workplace centered

education because unions are the foremost providers of adult education in many

countries

37

2313 Recreational and Social Services

Unions have rendered service in provision of social benefits launching

cooperative movement and arranging recreational facilities to workers Jose (2000)

wrote that unions over the years embraced a broader agenda including health care

leisure and recreation retirement and non-wage benefits from employment

Fahlbeck (1999) reported that unions in Sweden provide services regarding the

private lives of their members for examples unionrsquos actions include contracting

insurance policies for their members such as home and accident insurance In

addition unions can arrange private bank loans or provide collateral for a loan and

Swedish union LO has recently entered in the field of utilities About recreational

services Fahlbeck wrote that unions routinely assist members in realizing meaningful

activities during time off and also help in arranging vacations One of the leading

travel and tour operators in Sweden which also runs hotels is a creature of the LO

movement

ILO (1999) observed that in the newly industrialized countries unions have

played an important role in shaping social security systems that is different from

industrialized countries For example in Singapore unions provided welfare benefits

to members Workers and employers together contributed a significant share of their

earnings to the Central Provident Fund Unions also participated in mobilizing

savings The other example is of Hong Kong where unions have also pushed for the

establishment of a pension system although this has not yet been functional In the

newly industrialized countries unions have played an important role in shaping social

security systems such as in Singapore where unions provide welfare benefits to

members and also participate in a sophisticated mechanism for mobilizing savings

Workers and employers together contribute a significant share of their earnings to the

Central Provident Fund which has become an important pillar of the Singapore

economy In Hong Kong (China) unions have also pushed for the establishment of a

pension system although this has not yet been put in place

38

Thomas (1999) reported that in Singapore trade union movement adopted new

role being associated with the implementation of welfare schemes so he terms unionrsquos

this role in Singapore as accommodating model

Virmani and Rao (1999) reported that the unions in Singapore have started on

non bargainable activities to enrich workers lives as they are promoters of

cooperatives in transportation health care consumer cooperatives insurance etc by

running 8000 taxies and 47 cooperative supermarkets

Wong (2000) expressed that in Singapore in 1969 for a socio-economic

movement contributing to workers well being in the wider community the role of

trade unions was broadened beyond collective bargaining on terms and conditions at

the workplace To start a cooperative movement decision was made to pool resources

with the objective to provide services to which private businesses were not offering to

lower-income workers and to give workers a stake in the ownership and management

of business ventures It was also decided to return any surplus to worker and union

shareholders and to the labor movement Wong further narrated about provision of

recreational facilities that in Singapore in 1986 the NTUC pooled resources to set up a

union operated Club for affordable facilities for members and their families today

there are eight outlets in the Singapore Unions with corporate support developed at

state land large-scale projects like NTUC Pasir Ris Resort NTUC Sentosa Beach

Resort and NTUC Aranda Club for affordable holiday facilities within Singapore and

also sat up the Orchid Country Club for workers golfing accessible to all through their

union or personal membership For cooperatives Wong reported that in Singapore

NTUC established its first cooperatives in 1970 to provide insurance to ignored

workers now there are ten cooperatives ie Denticare Fair Price (supermarket)

Childcare Healthcare Food fare (cooked food) Choice Homes Eldercare Media

Thrift and Loan providing services to meet the diverse needs of workers and their

families

Stiglitz (2000) also acknowledged the highly constructive social and political

roles of labor movements in many countries in promoting adult education movement

39

the mutualism movement in the form of credit unions mutual banking mutual

insurance cooperatives friendly societies and other self-help associations

Ebbinghaus (2002) found that even in Europe now unions are involved in the

social policy area and participating in self-governing bodies of national social

insurance schemes

2314 Children Education

Song (1999) wrote in research report about unionsrsquo struggle in Korea that

working conditions have gradually improved with a shorter working day and for

better fringe benefits including childrens education and housing allowances

2315 Workers Awareness

Mishel and Walters (2003) reported that unions created awareness about laws

regarding health such as in USA about FMLAs existence and regulations Unions

have also given workers awareness about their rights so union members are about 10

more likely to have heard of the FMLA (in USA) and understand whether or not they

are eligible This is because of awareness given to them by unions

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY

The co-operative role of unions towards state employer and society by

exerting efforts to increase productivity and efficiency has been studied by several

researchers as quoted in following lines

241 Productivity Efficiency and Profitability

According to Hirsch (1997) productivity simply means output for given levels

of inputs A firm that is more productive than another can produce more output using

the same combination of inputs or equivalently produces the same output using fewer

inputs When increase in productivity is referred attributable to unions it means a real

shift in the marginal product schedule Hirsch concluded from many studies both

negative and positive effects of unions on productivity Even some studies show

negative as well as positive effects of unions on productivity at different times in the

40

same study Hirsch quoted about the effect of unions upon productivity that unions

increased total factor productivity by more than 20 percent

Shafiq-ur-Rehman (2003) is of the opinion that unions provide their members

both with protection against arbitrary management decisions and voice ant work place

and this will be not only increasing wages but productivity as well He further wrote

that collective voice face of unionism suggests important ways in which unionism can

raise productivity

There are surprisingly few manufacturing-wide or economy-wide productivity

studies and none reports consistent evidence of an overall positive effect of unions

upon productivity

Maki (1983) using aggregate Canadian data concluded that the shock effects

of unionization initially increase productivity levels but that unionism is associated

with slower productivity growth British studies of Nickell Wadhwani and Wall

(1992) and Gregg Machin and Metcalf (1993) for differences in productivity growth

between unionized and non-unionized firms evidenced that unions have either a

negative effect or no effect on productivity growth during the early years of their

analysis but positive effects during the 1980s Marshall (1987) is of opinion of

negative effects of unions on productivity and economic performance

A study of Morgan (1994) who used aggregate cross-sectional manufacturing

data across time found surprising results Morganrsquos estimates for the years around

1972 were of increasing productivity but declined steadily over time and were

negative during the 1980s

Fernie and Metcaf (1995) found that for one dimension measure the union

effect is negative but only marginally significant

Hirsch (1997) referred his own study based on a sample of 531 firms and

covering the period from 1968 to 1980 and provides the most comprehensive

treatment of unions effects on productivity growth where he found that union firms

are found to have substantially slower productivity growth than nonunion firms

41

Aidt and Tzannatos (2001) are of the view that the impact of unions on

productivity levels is empirically indeterminate Some studies suggest a positive

impact but others imply a negative impact or no impact at all For example unions

appear to have a negative impact on productivity levels in the United Kingdom but a

positive impact in Malaysia Regarding profitability Aidt and Tzannatos concluded

that net company profits tend to be lower in unionized firms than in similar non-

unionized firms (in Japan the United Kingdom and the United States) There seems

to be a relatively large negative impact on profitability in firms that have product

market power

Addison (nd) wrote about UK that early British evidence shows negative

effects of unionism on the productivity of firm and establishment but according to

later researches there is no short fall in unionized establishments during period of

1979-1984 and unionized firms increased their productivity most at the end of the

1980s There are several studies showing negative albeit least effects of unionism on

productivity as Gregg et al (1993) found that unions recognition affects negatively but

statistically insignificant effect during 1984-97 but positive and statistically significant

for 1988-89 (+3 to 4 ) Study of Conyon and Freeman (2001) revealed that union

effect is negative but statistically insignificant

According to Vedder and Gallaway (2002) Labor unions in contemporary

America have harmful aggregate effects on the economy They are associated with

lower rates of growth in income and jobs On balance people move away from union-

intensive areas to areas with relatively low rates of union density Occupations and

industries with high rates of union density have had less vibrant job growth in recent

decades Widespread unionization of an industry is often associated with initial sharp

declines in employment as the steel industry demonstrates The decline in union

density in the private sector in the past generation has been sharp and that decline has

added to the vitality of the economy at the beginning of the new century The

increasing weakness of unions in the market economy has contributed to economic

growth and a rising proportion of the working age population that actually works

42

From some researches evidences have been found that unions have worked for

enhancing the efficiency and productivity of workers Freeman and Medoff (1984) are

of the view that in many sectors unionized establishments are more productive than

nonunion establishments while in only a few they are less productive The higher

productivity is due to lower rate of turnover under unionism improved managerial

performance in response to the union challenge and generally cooperative labor-

management relations at the plant level

Eaton and Voos (1992) concluded that union firms are more likely than their

nonunion counterparts to be involved in workplace innovation such as those of

cooperative arrangements like teamwork and production gain sharing which yield

higher productivity Kelley and Harrison (1992) found that unionized firms were as

much as 31 percent more productive than non-union firms

In its report the World Bank (1995) concluded that trade unionrsquos activities

could be conducive to higher efficiency and productivity because they balanced the

power relationship between workers and managers and unions limit employerrsquos

arbitrary exploitative or retaliatory behavior by establishing grievance and arbitration

procedures Unions reduce turnover and promote stability in the workforce conditions

that causes an overall improvement in industrial relations which leads to enhance

workers productivity The view that the unions can enhance productivity and

efficiency also has been supported by recently analyzing Malaysian data

Pencavel (1995) wrote that presence of union and its representation of workersrsquo

demands views and ideas before management can benefit as well as harm the firm It

benefits when productivity and efficiency is increased and causes harms when wages are

raised beyond the firmsrsquo paying level For example in many jobs the worker may be

better informed about the potential for productivity improvements within his department

than his supervisor and he will be more willing to provide that information if he is

confident that any change in organization will benefit him He can communicate his

information to management through his agent that is union The presence of an agent of

the worker may make the worker less suspicious that the information he reveals will

benefit only management There is evidence that participation by workers in a firms

43

decision-making sometimes raises productivity and if the union involves the workers in

efficiency-enhancing activities then unionism is associated with a more productive

organization However according to Pencavel there were also arguments to suggest that

unionism harms productivity particularly when a union protects indolent or careless

workers from disciplinary action or when a union opposes changes especially labor-

saving technological changes and thereby retards an organizations development or a

union may successfully negotiate capital-labor ratios that oblige the firm to use more

workers per machine than relative input prices would call for

Fashoyin (1997) is of the view that in Japan the productivity improvement

movement has had a much greater impact and unions were an important party to the

productivity improvement crusade

According to Tolentino (1997) during the Asian Regional Seminar of ILO on

Trade Unions Industrial Relations and Productivity held in Tokyo in 1982 the

participants adopted the view that the goal of high and increasing productivity in

industry agriculture and services is one to which Asian trade unions no less than

management and government can and ought to subscribe This position was a clear

exemplification of the trade unions long commitment to national development and

indeed of their perception of the leading role which they could and should play in this

process Tolentino opined that the rapidly globalizing economy calls for dramatic

changes in the roles that the trade unions have to play to improve national

competitiveness for the sake of workersrsquo well-being As representatives of workers

they could play a significant and active role in creating the national economic and

business environment that will make their countries competitive in the globalize

marketplace of capital technology products and services The trade unions as

representative organizations of workers have very important roles in the promotion of

productivity At the macro level they could participate in the creation of the policy

and general business environment conducive to productivity improvement and at the

institutional level they could exercise their influence in making productivity related

institutions such as vocational training systems industrial relation bodies etc

effective At company level trade unions can participate in the companys productivity

improvement efforts by helping to create the enterprise policies and structures that will

44

guide and facilitate productivity improvement and helping their members directly to

participate in the productivity improvement programs of the enterprise In Poland in

the last three years more than 600 enterprises have undertaken productivity

improvement programs through the joint efforts of management and trade unions and

achieved growth 2 to 5 times the growth rate of the whole Polish economy

Productivity raised by 78 (in one year) compared to 8 in the total economy The

tremendous increase of profit made bonuses possible Some of the enterprise started to

increase employment The personal income of workers increased by an average of 20

compared to 2 in the whole economy due to the 40 growth in the value added

in these enterprises compared to 6 in the whole economy

According to Human Rights Watch (1998) productivity in Malaysia is actually

higher in enterprises where the workers are organized in industrial unions than in non-

unionized companies

Cassoni et al (2002) also reported that unions promote increases in

productivity and prevent profitability increases

A study of Bernhardt et al (2002) of Wisconsin Regional Training Partnership

an association of 125 employers and unions concluded that among member firms

productivity is way up exceeding productivity growth in nonmember firms

Shafiq-ur-Rehman (2003) wrote that in some Asian countries like Korea and

Japan trade unions adopted a cooperative and assisted management in improving

efficiency

Ash and Seago (2004) examined the relationship of unionized nursing staff and

the mortality rate for acute myocardial infarction (AMI) or heart attack in acute care

hospitals in California and found that hospitals with union nurses have 55 lower

heart-attack mortality than do non-union hospitals

Doucouliagos and Laroche (2003) expressed that the economics literature

found a positive association of unions on productivity The positive association of

unions with productivity is established for the United States in general and for US

45

manufacturing in particular Eisenbrey (2007) denied the common myth that unions

hurt productivity supposedly because they impose work rules that make their

employers less efficient He quoted yearly growth of workers productivity in the form

of bar chart showing productivity increase of 18 18 15 15 14 17 23 and 17

for Belgium France Germany Italy Netherlands Spain Sweden and USA

respectively for years 1979 to 2005 Productivity in USA did not increase even as

consequence of dropping of unionization to 12 during this period while productivity

increased in the seven largest European countries with union density greater than 60

Regarding profitability Freeman and Medoff (1984) are of the view that as

compared to non-union employers unionized employers tend to earn a lower rate of

return on capital because of increase in wages and the greater amount of capital used

per worker These increased costs are not compensated for by the higher productivity

of labor associated with unionism

About profit Hirsch (1997) analyzed that union wage gains lower firm

profitability unless offset by productivity enhancements in the workplace or higher

prices in the product market He concludes from several studies that although there is

diversity in results most studies obtain estimates suggesting that unionized firms have

profits that are 10 percent to 20 percent lower than the profits of nonunion firms

Saavedra and Torero (2002) referred evidence from some studies showing

negative effect of unions on profits and also a negative albeit less robust impact on

labor productivity in Peru

Studies of Addison and Hirsch (1989) and Machin and Stewart (1996) about

North America and Meneses-Filho (1997) for the United Kingdom reveal that unions

have a negative effect on profits and on shareholders wealth About profitability

Addison (nd) expressed that almost all early British studies showed negative effects

of various indicators of presence of union on the financial performance or profitability

46

242 Work Place Harmony and Cooperative Role

Unions are blamed for harsh and quarrelsome attitude non-cooperation and

always demanding for benefits Following studies shed light on it

Katz et al (1993) concluded that despite in some cases unions have defended

the lsquotraditional waysrsquo by fighting against the lsquochangesrsquo but in some other cases unions

cooperated for saving jobs and promoting human-side benefits of more flexible work

organization Unions have also played a proactive reformist role by pushing

management toward new forms of organization such as group work

Wagar (1997) in his paper investigated the relationship between labor-

management climate and perceptions of productivity product or service quality and

customer or client satisfaction using a regional and national sample of Canadian

organizations and a regional sample of local unions Results reveal a strong

relationship between labor-management climate and measures of organizational

performance with a more positive labor-management climate associated with more

favorable scores on the performance variables

About India DeSilva (1997) concluded that the unions and management which

are social partners after decades of conflict have gradually recognized the importance

of bipartite relations which emphasizes on workplace harmony

Preuss (1998) during a study of Management Cooperation and Hospital

Restructuring in USA found that union labor-management committees improve

communication and ease the process of implementing new hospital practices in

response to changing market demands

Song (1999) wrote that South Korean unionrsquos struggled to promote worker

compliance and commitment to firms and brought the employees back from street

rallies into the workplace

ILO (1999) reported that in countries like Denmark Germany Italy and the

Netherlands governments want to associate trade unions with social and economic

policies which are translated into employmentrdquo and social pacts whereas in the UK

47

and New Zealand during last two decades trade unions and governments relations

have deteriorated and the position of the trade unions weakened by a hostile political

environment ILO report quoted instances of union and state cooperation In Italy

because of state and unions mutual affinity a tripartite pact to promote employment

with special attention to the less developed areas and agreement including significant

elements on educational reform training and the reduction of working time was signed

in September 1996 In Spain trade unions are cooperating with government policies in

regarding job creation and regional development In Greece the General Confederation

of Workers has associated with the State and with employers organizations in

committeersquos formation on the specific problems of long-term unemployment

Similarly in Germany a similar national pact was proposed in Germany but not finally

agreed

ILO report also revealed that trade unions in Singapore cooperated with the

State and the employers in efforts to maintain full employment unions cooperated

with other social partners in attempt to set wages at levels which maximize

employment Unions are members of tripartite committees including National Wage

Council and in the past have accepted temporary wage cuts in order to save

employment About unions cooperation with employer or management ILO reported

that because of trend towards decentralization importance is given to Works Councils

and new institutions like this one example is of Italy where the trade union

movement in agreement with the State and employers associations has created a new

institution in the workplace and all workers can elect representatives from within or

outside the union Majority of seats (in this have been) won by the unions The

employers are reportedly satisfied with the new institutional structure for workers

representation The other example is of South Africa where workplace forums were

created in 1996 in order to establish joint decision-making and consultation between

management and workers at shop floor level

Virmani and Rao (1999) expressed that responsible trade unions in Singapore

are one of attractions of doing business in Singapore because with industrialization

process trade unions have developed disciplinary spirit therein and became conscious

to develop the country economically

48

Wong (2000) also wrote about unions in Singapore that the unionsrsquo approach

to industrial relations moved from conflicting to cooperative after independence of

Singapore And during recent economic crisis the importance of constructive tripartite

relations and the positive role of the labor movement has been highlighted when many

union leaders had been involved in working out mutually acceptable measures to

overcome the recession in 1986 and they reached on a consensus when Government

union leaders and employers were able to gain worker support for wage cuts

Hirsch and Schumacher (2000) referred the analysis of Freeman and Medoff

1984 concluding that Unions have had success in pushing for workplace mandates

applicable to both the union and nonunion workforce as there is strong public demand

for many forms of protection in the workplacerdquo

Hence Aidt and Tzannatos (2001) wrote that unions facilitate worker-

participation and worker-manager cooperation in the workplace This can have

efficiency-enhancing effects that jointly benefit workers and management

Yates (2001) expressed promising views about role of unions in faster growth

of New Economy that unions can overcome certain inefficiencies inherent in the

marketplace and at the same time helping individual workers to fulfill their goals more

easily and at less personal cost However Yates stressed on transformation of unions

which can begin to provide an array of personal services to members and help to

negotiate and to finance contract provisions that provide skill training for workers

Presently when new employers are promoting multi-skilling for workers unions can

help the employers to attain greater flexibility by agreeing to eliminate job

descriptions and allow employers to assign workers to a variety of jobs Unions can

also support employers in their efforts to achieve greater time flexibility through the

implementation of longer work shifts and more elastic shift scheduling and they can

agree to allow the employer to schedule mandatory overtime albeit at premium pay

Unions encouraged higher wages and protected economy in USA About the

union role in economic depression of 1930s Lichtenstein (2002) quoted from his book

State of the Union A Century of American ldquoin the 1930s as political leaders saw the

value of unions Unions offered the opportunity to protect and encourage higher

49

wages resulting in increased consumption and a stronger economy Where the

Depression was seen as the failure of American capitalism labor unions offered a

countervailing force both economic and political Industrial democracy re-enforced

political democracy and so unions were seen especially by the Roosevelt

Administration as important pillars of the American identityrdquo

Labor unions are also extending cooperation in Sustainable Development

According to Conference on Sustainable Development (2001) trade unions want to

cooperate with local and national governments international agencies and other Major

Groups to bring about patterns of decision-making that are consistent with the goals

of sustainable development (CSD 2001)

About Europe Knox (2004) wrote that strikes are rare in Germany and in Volks

Wagens 67-year history there has never been a strike only warning demonstrations to

pressure management Therefore in Germany working days lost to strikes run about

five per 1000 employees a year vs about 43 days in the United States But there have

been several strikes in Germany and elsewhere in Europe in recent months as workers

protest company demands for longer workweeks for the same or less pay The

demonstrations however have been short-lived and the unions usually have backed

down against the threat of layoffs or job relocations Therefore in recent contracts

unions cooperated and gave several concessions to employers such as at Karstadt

Quelle a big retailer in Germany trade unions agreed to a three-year wage freeze in

exchange for a promise the company would cut 5500 jobs through attrition not firing

Similarly in France workers at a Robert Bosch car parts factory voted to work an

extra hour a week without pay to stop the car components company from moving the

work to the Czech Republic

50

25 STRATEGIES AND TACTICS OF UNIONS

For the achievement of objectives of securing benefits for the workers and

solution of their problems unions adopt peaceful and violent means and succeed when

they have strength or fail in their struggle if they have no strength Numerous

researches have highlighted it

Jose (2000) is of the opinion that the unionrsquos capacity to influence depends on

their strength and support among the unionized and non-unionized sections of society

Bryson (2001) opined that the employer and employeesrsquo perception of

legitimacy of union in representing workers interest is influenced by higher union

density and where unions represent most of the workforce they can represent workers

interest with a strong voice

Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos

view large and centralized unions are more functional and influential than fragmented

unions

251 Source of Strength of Unions

Thomas (1999) is of the view that trade union organizations largely derive

their characteristics heritage identity and future strategic options from the parameters

that are set by the country in which they function Jose (2000) expressed that union

success depends on its capacity to incorporate workers rights and interests into

legislation or other regulatory instruments of the labor market For building

institutional capacity the following objectives have been prominent on the agenda of

unions (i) legislative provisions guaranteeing job security unemployment insurance

and special benefits on termination of employment and social security providing for

health care and pension schemes (ii) multi-employer agreements on employment

wages working conditions hours of work and non-wage benefits of workers (iii)

ability to influence economic and social policies through consultation and dialogue

with employers and public authorities

51

2511 Unionsrsquo density and their strength to effect

Jose (2000) wrote that labor legislation collective agreements social security

and minimum wages already in place are clear indicators of the strength and influence

of trade unions They reflected a capacity to influence public opinion and mobilize

action in support of the demands of their constituents In developing countries notably

in Asia unions have had significant achievements in maintaining or upgrading

statutory safeguards on employment and working conditions Nonetheless such gains

are mostly restricted to workers in the formal sector

But to cast influence the unions should be stronger and unions can be stronger

if they have a minimum density called threshold density

Aidt and Tzannatos (2001) are of the view that Industries with high overall

union density tend to have a higher wage markup Mishel and Walters (2003) found

that 30 to 40 is the minimum level of unionsrsquo density to produce any threat effect

Therefore the unionization of 20 in a particular industry may have no impact but

40 unionization may be sufficient to make employers aware of union organizing and

union pay and practices Unionrsquos presence of 60 to 70 may provide as strong a

threat or ability to set standards as unionization of 80 or more Therefore unions

can put a greater effect when density is higher

252 Peaceful Means of Achieving Objectives

Unions adopt peaceful means like negotiation reconciliation arbitration and

suits in the courts as well as violent means like tension strikes and processions for

achieving objectives of securing benefits for workers

In Japan trade unions have achieved improvement through collective

bargaining on pay working hours fringe benefits and in house welfare programs

Unionsrsquo efforts have become more important in recent years (Inoue 1999)

Among the peaceful means of obtaining objectives is Collective Bargaining

Jose (2000) reported that the value of collective action initiated by unions for attaining

common objectives is now widely recognized by a broad spectrum of interest groups

52

But unions have moved from collective bargaining to voice in continental Europe and

Japan due to high density of unionism There is growth of trade unions from the

collective bargaining function towards a role dominated by voice and representation of

workers The broad membership base which unions commanded and the equitable

distribution which they promoted in major sectors and enterprises strengthened the

position of unions giving them more power to bargain or collaborate and to derive

successful outcomes

253 Violent Means

When the peaceful means are not successful in achieving the objectives then

unions go on strikes Unions have resorted to this option according to following

researches

Colman (2000) wrote about USA that in 1824 women and men in a textile

factory in Pawtucket Rhode Island led the countryrsquos first strike demanding the owner

to reverse his decision to increase work day by one hour and cut their wages After

four years women went on strike in Dover New Hampshire demanding the

elimination of ban on talking at work and fine to employees 125 cents for being one

minute late In 1831 1600 women tailors in union of tailorsrsquo society in New York

struck for higher wages In 1834 in Lowell Massachusetts over 800 looms and

spindle operating women in the textile mill called a strike to protest wage cut

In Israel Before 1995 the famous labor union Histadrut seldom resorted to

general strikes in the public sector but since July 1997 The New Histadrut has

called three extensive strikes In July 1997 strikes were of government owned

corporations in December 1997 and in September 1998 the entire public sector went

on strikes During the strike in September 1998 the threatened closure of Ben-Gurion

International Airport contributed to reaching an agreement (Nathanson and Associates

1999)

CLR reported that in June of 2000 workers at the Duro (a gift bags

manufacturing firm) plant in Rio Bravo (Mexico) went on strike to establish an

independent union and forced the reinstatement of their elected leaders who were

53

illegally fired as a result of strikes Mexican government officials in August 2000

granted official registration as first independent union to the Duro workers (Carty

2003)

Unions weakened due to effects of Multi National Companies and

Globalization According to UNDP (2000) report conventional weapons of strikes

boycotts and demonstrations became useless because of emergence of MNCs and

Globalization unionrsquos power has weakened In the past labor groups could combat

with economic power of employer by seeking redress at the national level appealing

to sympathetic politicians and government officials to enact protective labor

legislation or alternatively labor unions could resort to offensive strategies like

strikes boycotts and demonstrations Unions could rely on this power because capital

in the past was immobile but in present era if these techniques are exercised capital

will move across the borders therefore the labor unionrsquos conventional weapons

strikes boycotts and demonstrations have became ineffective and unions have been

rendered weak

26 CORRUPTION OF UNIONS

Though unions exerted efforts for securing benefits gaining respect and

building a fearless atmosphere for their workers but unionsrsquo history is also plagued by

corruption which has been brought to light by following researches

261 Corruption and Selfishness of Officials

Ware (1935) wrote that labor leaders in USA are trade unions officials and

they have been accused of the complete unconcern for any worker but the members of

their own craft union interest in holding their own job a close association and

cooperation with employers in dealing with industrial problems and racketeering

For unions in Pakistan Khan (1992) expressed that the numerical increase of

trade unions leads to personal rivalry of union leaders competing for command over

small unions The trade unions leaders fight among themselves instead of fighting

54

against management or government and every leader is status seeker caring more for

his own prestige and image than to cause of common worker or unionism

Pencavel (1995) opines about union pluralism that a policy permitting the

formation of more than one union per enterprise will lead to disputes and rivalry

among unions He quoted the example of the situation in the Indian sub-continent

where the strength of unions is sapped through disputes among themselves rather than

in bargaining with employers

Bezuidenhout (2002) narrated that in South Africa Industrial and Commercial

Workersrsquo Union (ICU) was also plagued by internal corruption and bureaucratization

According to a report of Weinstein (1996) in USA during two decades LIUNA

(Laborers International Union of North America) officials have recorded over 80

convictions for crimes ranging from racketeering to bribery extortion tax evasion

and even of attempted murder

Horowitz (1999) reported about USA that unionrsquos corruption is not a new

phenomenon but as government reports documented even in the 1920s among

construction trade unions in New York City a widespread corruption and racketeering

was also prevailing

262 Financial Corruption

Weinstein (1996) wrote the instances of unions financial corruption eg the

House Judiciary Committees Subcommittee on Crime (in USA) held hearings that

union official lent $100000 of LIUNA money to the Clinton Inaugural Committee

and in 1993 and 1994 the Laborers Political League (LPL) donated over $1 million to

Democratic Party congressional candidates During 1995 and the first quarter of 1996

the LPL has contributed $747000 to over 200 liberal congressional candidates

Weinstein and Wieglus (1996) expressed that unions keep the workers ignorant

from their rights for example Labor Secretary Robert Reich who frequently proclaims

the Clinton Administrations concern for workers rights told the AFL-CIO recently

that collective bargaining is not a privilege it is a right Yet the Administration has

55

cooperated with union officials to keep workers in the dark on their Beck rights They

further quoted example of AFL-CIO for the misuse of unionrsquos funds for political

campaigns as AFL-CIO has launched $35 million voter education project funded

mainly with mandatory union dues to defeat conservative members of the 104th

Congress

Horowitz (1999) brought in to light that the Federal Election Commission in

(USA) reported that soft donations by labor unions to national political parties

during the 1997-98 election cycle totaled some $8 million nearly all of it to the

Democratic Party

In the research report conducted in USA Sherk (2006) expressed that it is true

that union members elect their leaders but union leaders appear to pursue an agenda

disconnected from the concerns of their members Some unions are heavily involved

in political activism they spend their membersrsquo mandatory dues to elect candidates

favored by the union leadership which means union leaders pursue an agenda that

their members do not support Therefore several states have passed ldquopaycheck

protectionrdquo laws that require unions to obtain written permission from their members

before they can spend membership dues on political causes He further wrote that

unions received from their members annual dues averaging $125 per member in 2004

and used only a portion of that money to represent their members Americarsquos 10

largest unions used an average of only 30 percent of their dues to represent their

members and negotiate with employers and spent the other 70 percent on lobbying

political activities gifts grants overhead and compensation for their staff These

other activities might or might not reflect the priorities of the unionrsquos membership

Unions generously spend their membersrsquo mandatory dues on politics He quoted that

in 2005 a non-election year the AFSCME (American Federation of State and County

Municipal Employees) spent almost 20 percent of its budget on political activities and

lobbying The AFL-CIO spent 30 percent of its budget on the same causes In the 2004

elections both these unions gave over 97 percent of their donations to Democratic

candidates Despite of misusing members contributed funds union leaders do little to

inform their members of many of their activities and it is doubtful whether union

56

members would approve of many of the decisions of their leaders Misplaced union

priorities extend beyond six-figure salaries and comfortable retreats for union bosses

2621 Embezzlement examples

Horowitz (1999) quoted many examples of unionrsquos office bearers

embezzlement in his report such as Bernard Rubin president of South Floridarsquos

Laborerrsquos District Council was convicted in 1975 on embezzlement racketeering and

tax evasion He misappropriated more than $350000 in union funds Similarly in

April 1998 a federal court convicted Eileen Cibellis former longtime office manager

and fund administrator for the Bloomfield New Jersey-based District Council 10 of

the International Brotherhood of Painters and Allied Trades for embezzling more than

$400000 from union funds There are other examples such as Carol Sue Fisher a

former bookkeeper for the local Paintersrsquo union in Evansville Indiana in 1992

pleaded guilty to embezzling some $135000 from the union fund John Ducey the

former financial secretary and business manager of the Carpet Linoleum and Resilient

Tile Layers union received a prison sentence for embezzling more than $51000 A

federal jury of embezzling union funds found George Osley Jr secretary-treasurer of

Laborers Local 872 in Las Vegas guilty of embezzlement of unionsrsquo funds The

National Maritime Union (NMU) a representative of some 2000 unlicensed seafarers

working on US flag commercial ships deserves special mention as over the years it

has served as a private bank for its leaders In January 1997 NMU President Louis

Parise Sr had to resign and sever all connections to the union following his

conviction in federal court on racketeering and embezzlement to the tune of more than

$700000 Robert Hickerson former business manager of Local 919 in Quincy

Illinois in 1982 was sentenced to three years in prison for embezzling union funds

and hiring vandals to smash more than $250000 worth of equipment owned by non-

union contractors In Lancaster NH Paul Wilson former treasurer of United Paper

workers Local 61 in 1993 was sentenced for theft of more than $67000 in union

funds This year Robert Kellas a former official of an amalgamated Transit Union

local in Bellingham Washington pleaded guilty to embezzlement of up to $120000

from the union over a four-year period These were few examples otherwise report has

numerous other events worthy to be mentioned but they would render the thesis very

57

lengthy Horowitz in his report wrote for different types of unionrsquos corruption in USA

and quotes numerous events eg ldquoIn New York City in 1995 federal investigators

discovered that around $8 million had vanished from the pension fund of Teamsters

Local 875 Local 875 had a long history of corruption in the previous 25 years five of

its officers and financial advisers were convicted of embezzlement or accepting

payoffs to keep labor peacerdquo He further wrote ldquoFor good measure the AFL-CIO in

1957 expelled the Teamsters for corrupt practices in the light of widely-publicized

hearings before Government Operations Committee headed by John McClellan

Arkansas Democrat in the Senate

Sherk (2006) in his report about American unions also quoted examples of

suspected incomes of unionsrsquo leaders such as Gerald McEntee president of the

American Federation of State and County Municipal Employees earns $580000 a

year from the dues paid by his unionrsquos far less compensated members The president

of the National Education Association earns $439000 a year which is almost ten

times what the average teacher earns It means union elected leaders earn salaries

several times larger than those paid to members of Congress Unions also spent over

$7 million in 2005 to hold conferences and workshops at resorts including the

Pheasant Run Resort amp Spa near Chicago and the Palm Springs Riviera Resort in

California a use of funds which also may not reflect their membersrsquo priorities Sherk

further quoted that unions pay for political campaigns from members contributions

and Supreme court in a suit ldquocommunication workers versus Beck (1988)rdquo established

a precedent that workers can not be forced to donate to political causes and are

entitled to demand the refund of the portion of their dues spent for political cause but

unions erected roadblocks in front of the workers who wanted to exercise their Beck

right

263 Unionsrsquo Officers Monopoly

Union officials enjoy what amounts to a monopoly and these union

monopolies shielded from competition provide them lax from accountability toward

the people they serve and individual worker or a group of workers demanding

accountability from their union may be risking their jobs or safety Union funds to pay

58

nonexistent employees is a common way of rewarding friends at the expense of

dues-paying rank and file Horowitz (1999)

Brohawn (nd) is of the view that in some cases it can be fairly said that

unions have empowered their leaders not their members

Ghayur (1996-b) wrote that in Pakistan the labor leaders are feudal minded and

they never bothered to make their action accountable to the members

264 Bribes (Extortion and Pay-off)

Horowitz (1999) Revealed in his report with example that the Construction

trade unions are notorious for extortion from contractors by threatening labor

problems such as work slowdowns disruption sabotage or assault In the 1980s a

civil suit against Local 6A of the Cement and Concrete Workers of the Laborers

International Union of North America (LIUNA) alleged that the local its district

council their officers and certain organized crime figures extorted one percent of the

contract price from ready mix contractors by threatening labor problems For a while

that bought labor peace FBI investigation of building trades practices in Long Island

led to the indictment of the president of the District Council of Carpenters and five

other union officials connected to organized crime families for extorting more than

$100000 from a drywall contractor In Philadelphia Joseph Fiorelli founder and

former boss of Local 1955 of the Drywall Finishers Union was sentenced to more than

10 years in prison on extortion payoffs from contractors theft of union funds and

racketeering charges Fiorelli had extorted payments from 25 contractors from 1967 to

1991 Contractors testified that in exchange for their payments Fiorelli gave them

labor peace and allowed them to sometimes use nonunion workers and to delay or

avoid payments to the unions health and welfare fund

About Bribery for securing jobs Horowitz expressed that unions protect their

members from competition by non-union members But when a contractor or

employer decides to hire non-union labor the unscrupulous unions make life

uncomfortable for contractors until they hire union labor or allow the contractor to

hire nonunion labor--if the price is right In 1981 Louis Sanzo president of Local 29

59

of the Blasters Drill Runners and Mines Union in Queens NY affiliated with

LIUNA and the others took a combined $400000 in payoffs from construction firms

to buy labor peace The owner of a Florida-based construction firm said he tried to get

out of the deal but Sanzorsquos men threatened to kill him his wife and three children

The contractor would say in his bid that he needed 30 men and he would be paid for

30 men by the people who hired him to do the job But then Local 29 would send over

only 15 men They could keep the rest of the money

265 Sound Labour Relations at the Workplace no Important Concern of Employers and Unions

Unions some times do not take interest for sound labor relations - especially at

the workplace De Silva (1997) wrote that in many South East Asian countries and

republic of Korea sound labor relations have not been an important concern of

employers and unions

Bacon (2005) expressed that in USA George Meany and Lane Kirkland AFL-

CIO leaders treated unions as a business representing members in exchange for dues

while ignoring the needs of workers as a whole

CHAPTER 3

HISTORY AND LEGAL FRAME WORK OF UNIONIZATION IN PAKISTAN

According to Khan (1992) the Industrial Relations is an art It is an art of living

together for purpose of production Industrial Relations System is a sub system of the

society and studies the web of rules and regulations that binds the workers and

managers in a working group In industrial relations three actors play their part

employer through management workers through unions and consumer through state

However this system varies from country to country or region to region

ILO (1999) categorized the countries according to the degree of influence

exerted by trade unions on government policies In some countries unions have a

decisive voice and they can influence social pacts as well as the human rights agenda

through trade policies In other countries governments can ignore the unions without

incurring major problems so in these cases unions have little influence on social

policy or human rights concerns Therefore two different patterns of unionsrsquo role

emerge reflecting regional differences In developing countries trade unions are

searching for a new identity while in the industrialized countries they are trying to

gain lost ground through membership campaigns

Thomas (1999) asserted that trade union organizations largely derive their

characteristics heritage identity and future strategic options from the parameters that

are set by the country in which they function

Similarly Wong (2000) wrote that the industrial relations system in each

country is rooted in different historical political socio-economic cultural and

environmental contexts and it makes it difficult to replicate one system in another

context So this research is focused on the study of the role of Pakistani Labor Unions

working in quite different political cultural and legal environment

61

Khan (1992) expressed that every industrial relations system must fulfill

function of defining the rights responsibilities and objectives of the government

employers and employees and establishing power structure among them controlling

and channeling the responses of managers and workers that arise due to

maladjustment frustration dislocation and insecurities inherent in industrial process

and establishing a net-work of rules These rules include things like recruitment

commitment level of compensation the wage structure and procedure for settlement

of disputes

In Pakistan the system of industrial relations is legalistic and government is a

regulator and has framed out laws for industrial relations and unions are formed and

function in the same framework of laws These laws are of two types First type of law

concerns with union making and that is IRO 2002 and second type is of laws granting

rights to which unions have to get implemented and exact the rights granted therein

for workers Besides this unions have to struggle for the rights which are not given yet

in law and also have to get the laws promulgated for grant of these rights The history

of emergence and evolution of legal framework in Pakistan is given below

31 HISTORY OF LEGISLATION

According to Shafiq-ur-Rehman (2003) the history of Labor Legislation dates

back to 1875 when the government of Bombay appointed a Factory Commission on

whose recommendations the Factories Act 1884 was promulgated Committee of

Inquiry was appointed in 1906 and Factory labor commission in 1907 and upon their

recommendations Indian Factories Act 1922 was passed and subsequently Trade

Union Act 1926 and Trade Dispute Act 1929 were also passed

The laws governing the formation of unions in Pakistan have passed through a

process of evolution during last eighty years Their chronological evolutionary steps

are reported below

62

311 Laws Permitting Establishment of Unions

In 1914 in Indo-Pak subcontinent there were more than a million workers

employed in 2936 factories besides a large number of workers employed in railways

mines plantation and government departments who were originally peasants pushed

towards factories by poverty After World War - I (1914-1918) the economic

conditions of these workers went worse as wages could not keep pace with rise in

prices There was acute distress and discontent among the workers but the industries

developed over the period were experiencing prosperity This led them to form unions

to demand increase in wages

In 1919 ILO was established and that gave recognition as well as big support

to trade union movements Consequently a substantial number of unions were formed

in subcontinent of Indo-Pak (from which Pakistan parted in 1947) in 1920s but many

of them were temporary like strike committees being formed at the outbreak of

strikes and disappeared with its end The Indo-Pak Legislative Assembly passed a

resolution in 1921 in favor of registration and protection of trade unions As a result of

this resolution the legislature passed the Trade Union Act 1926 This act recognized

the workers rights to organize and form trade unions and laid down that any seven

persons or more forming trade unions could seek their registration of trade union and

this registered trade union was not to be considered a body unlawful in restraint of

trade However this law laid down penal clauses for violating any of the restrictions

imposed or for providing false information to the Registrar of Trade Unions After

independence in 1947 the government of Pakistan adopted the Trade Union Act 1926

and it remained in enforcement as major piece of legislation up to 1960 No doubt this

law has provided protection to the workers to combine for improving their

employment conditions and from being considered anti-state activity But the law has

a serious draw back that it was not providing unions the recognition of bargaining and

protection to workers from employersrsquo discrimination for union activity In 1960

Trade Union (Amendment) Ordinance 1960 was passed to amend and improve the

previous Act According to new law the recognition of trade union on employer was

obligatory and registered union was granted the right to negotiate with the employers

in matters concerning employment un-employment the terms of employment and the

63

conditions of work of all or any of its members The employer was bound to receive

and reply to letters from and to grant interviews to executives of union in connection

with any such matter The employer could with draw his recognition but with the

permission of labor court The previous maximum 50 percent limit of number of office

bearers from outsider was reduced to 25 percent in this law The trade unions were

required to maintain subscription register account books and membership list In this

law clauses for ldquounfair labor practicesrdquo both on the part of unions and employers and

the penalties in cases of breach of these clauses were also added Another ordinance

under name of Trade Unions (Amendment) Ordinance 1961 was passed to make

amendment to debar outsiders from becoming officer of union unless they were full

time paid employees of that trade union After the promulgation of Constitution of

1962 all the labor matters including legislation were transferred to provinces (East

Pakistan and West Pakistan) So a further ordinance ldquoWest Pakistan Trade Unions

Ordinance 1968rdquo was passed that made amendment to enhance powers of ldquoRegistrar

Trade Unionsrdquo empowering him to interfere with the conduct of unions even after its

registration to order an inquiry in the matters of unions if he thought that the funds of

a union were likely to be misappropriated The registrar could ask the union to curtail

the number of office bearers if it seemed disproportionate to the total number of its

membership Without the permission of the Registrar the employer was not to

discharge or dismiss or otherwise victimize an office bearer of trade union during the

pendency of its application for its registration The registration certificate could be

cancelled if the union participated in an illegal strike or go-slow A federation with

membership of at least seven registered unions could seek registration The registered

federation could have 50 percent of its office bearers from among the workers who

were not engaged industry or industries with which federation was concerned This

ordinance restricted the eligibility only to those unions which had minimum

membership of workers 10 percent of the total workmen employed or 100 whichever

is less The age to be office bearer of union was 21 years for employees and 25 years

for outsider Khan (1992)

64

312 Laws for Settlement of Disputes

Before IRO 1969 there were different sets of laws permitting union making

and for settlement of disputes The foremost law pertaining to settlement of

employers employee dispute was Employers and Workers (dispute) Act 1860 This

act provided for the determination of disputes relating to wages of workers employed

in the construction of railways canals and public works and breach of contract by

workmen was a criminal offence The cases of dispute were handled by magistrates

Later on Trade Dispute Act 1929 was enacted which provided for ad-hoc machinery

enabling the government to establish the Court of Inquiry and Conciliation boards

Industrial Dispute Act 1947 was enacted to provide hierarchy of institutions for

bringing out harmonious collective relations between the employers and the workmen

through work committees Conciliators board of conciliation Court of inquiry failing

which the settlement was arrived at by adjudication by a reference to an Ad-hoc

Tribunal The industrial establishments were classified in two categories Public

Utility Services and Non Public Utility Services Public Utility Services included any

Railway Service and section of an industrial establishment on the working of which

safety of establishment or workmen depended any postal telegraph and telephone

service any industry which supplied power water and light to public any system of

public conservancy or sanitation any undertaking establishment or installation

relating to defense services any service incidental to the operations of ports and any

such industries as transport coal cotton textile food stuff iron and steel as declared

by the government to be public utility service for a period of six months at a time

Industrial Dispute Ordinance 1959 changed industrial relations by further enlarging

the scope of term public utility services by including all types of industry later on

West Pakistan Industrial Dispute Ordinance 1968 was passed wherein provincial

government assumed the power to prohibit strike or lockout existing or apprehended

in public interest or for the maintenance of essential services or supplies (Khan 1992)

313 Industrial Relations Ordinance 1969

The Industrial Disputes Act (IDA) of 1947 was passed in April 1947 It made

no provision for procedures to determine the representative union what would

65

normally be a single bargaining unit Employers were under no legal obligation to

bargain with unions so there were no built-in incentives for either party to engage in

collective bargaining Therefore this right has been given in IRO 1969 The Industrial

Disputes Act 1947 also made it very difficult for the unions to call a legal strike

There were also problems in the Indian Trade Union Act of 1926 The Act allowed

any seven workers to register their trade union but made no provision for union

recognition (eg through a secret ballot procedure)

To remove the shortcomings of the labor legislation and address the workers

unrest because of political disturbance of ending years of regime of president Ayub

Khan and to create industrial harmony and peace government promulgated Industrial

Relations Ordinance (IRO) 1969 The objective of the IRO 1969 was to facilitate the

formation of trade unions and to provide simple procedure for their registration It was

primarily meant for regulating the employer employee relations and to determine

collective bargaining agent to arrange for the adjustment of conflicting interests by

collective bargaining to provide machinery (institutions) for just and equitable

settlement of disputes by conciliation voluntary arbitration and adjudication between

workers and employers with a right of representation by a registered trade union or

federation of trade unions or association of employees to prevent strikes and lockouts

and to provide relief of workmen in matters of employment relations

It was a comprehensive law and it consolidated the laws relating to

registrations of unions and laws relating to settlement of disputes Before this both

were dealt with different laws At different times establishments of unions were dealt

under Trade Unions Act 1926 Trade Union (Amendment) Ordinance 1960 Trade

Unions (Amendment) Ordinance 1961 and West Pakistan Trade Unions Ordinance

1968 where as trade disputes had been dealt under Employers and Workers (dispute)

Act 1860 Trade Dispute Act 1929 Industrial Dispute Act 1947and Industrial

Dispute Ordinance 1959

According to this law the formation of trade unions was expressly recognized

and there was provision for their registration A certified and duly elected registered

trade unions in industrial undertaking or an establishment could be taken as collective

66

bargaining agent and only collective bargaining agent could raise a dispute and take

bilateral negotiations within ten days of issue of charter of demand This law in

conjunctions with West Pakistan Industrial and Commercial (Standing Orders)

Ordinance1968 made it legally difficult and expensive to fire any worker and

developed a comprehensive measures relating to the terms and conditions of

employment and work procedure of handling grievances enforcement of discipline

and to regulate on the job relations within the establishment The IRO 1969 however

excluded the persons employed in Police Defence Services of Pakistan in the

Services and installation of Armed Forces and public services This Ordinance was

amended in 1971 to remove certain administrative difficulties amended twice in 1972

to insert provision of junior labor courts Amended in 1973 to allow 20 percent

workers participation in management and system of shop stewards was introduced

and a standing National Industrial Relation Commission (NIRC) was appointed Law

was amended in 1975 and a wage commission was created to determine the economic

disputes in banking industry and other financial institutions Again amended in 976 to

incorporate the principle ldquoone worker one unionrdquo to check the multiplicity of unions

to delete the provision of junior labor courts and to raise the strength of workers

representatives in Management Participation Committee to 50 percent Here the

power was taken to highest echelon through Joint Management Board To make the

works council to be a forum of joint negotiation law was amended in 1977 Final

amendment was made in 1979 This law has been repealed vide section 80 of IRO

2002

32 RIGHT OF UNIONIZATION

Right of unionization has been derived in Pakistan from UNO declarations

ILO conventions ratified by government of Pakistan and Constitution of the State

321 United Nationsrsquo Declaration of Human Rights

Articles 23 and 24 of the UNOrsquos Declaration are for workers favor besides

permitting the formation of labor unions (Wikipedia-b)

67

Article 23

1 Everyone has the right to work to free choice of employment to just and

favorable conditions of work and to protection against unemployment

2 Everyone without any discrimination has the right to equal pay for equal

work

3 Everyone who works has the right to just and favorable remuneration ensuring

for himself and his family an existence worthy of human dignity and

supplemented if necessary by other means of social protection

4 Everyone has the right to form and to join trade unions for the protection of his

interests

Article 24

1 Everyone has the right to rest and leisure including reasonable limitation of

working hours and periodic holidays with pay

322 ILO Conventions

To enable us to identify the basic union rights it is necessary to have a glimpse

of the International Labor Organization Conventions No 87 and 98

According to Convention No 87 workers and employers shall have full

freedom to organize themselves The organizations shall draw up their own

constitution and rules elect their leaders in full freedom and organize their

administration and activities without any interference by the government The

organizations shall not be dissolved or suspended by the administrative authority

which is the government

Government should impose no condition on the organizationsrsquo right to

establish or join a federation or confederation and to affiliate with international

68

organizations Granting of legal personality shall not involve restrictions on the above

rights Pakistan has ratified it on 14th February 1951

Under Convention No 98 it is the responsibility of the government to protect

workers against anti-union discrimination and victimization by employers and against

domination of workers organizations by any acts including financial contributions

The government should also establish machinery for the purpose of ensuring respect

for the right to organize Pakistan has ratified it on 26th May 1952 These rights

adopted by the ILO are more or less based on the lsquoUniversal Declaration of Human

Rightsrsquo Workers especially need these guarantees to protect themselves against

exploitation by employers who wield financial power and political influence

323 Constitution of Pakistan

The article16 and 17 of constitution of Pakistan have given a general right to

organize and form association to the workers

Article 16 is about freedom of assembly and says ldquoEvery citizen shall have the

right to assemble peacefully and without arms subject to any reasonable restriction

imposed by law in the interest of public orderrdquo

Article 17 is about freedom of association and says ldquoEvery citizen shall have

the right to form association or union subject to any reasonable restriction imposed by

in the interest of sovereignty or integrity of Pakistan public order or moralityrdquo

33 PRESENT ENFORCED LAWS

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo

Presently trade unions are formed and function according to IRO 2002 This

ordinance was promulgated in 2002 to amend consolidate and rationalize the law

relating to formation of trade unions regulation and improvement of relations between

employers and workmen and avoidance and settlement of any difference or disputes

arising between them A summery of main provisions of this ordinance regarding the

right of unionization and protections given to unions their functioning functioning

areas and limitations in IRO 2002 is given here

69

1 It allows the formation and joining of trade unions to workers and formation of

association to employers (section 3) and allows these unions and associations

to join respective federations allows federations to join confederations and

these federations and confederations can affiliate with international

confederations (section 18) However this law restricts a worker to be a

member of more than one trade union at any one time Law also binds that

every collective bargaining agent union shall have to affiliate with any

federation at the national level registered with the National Industrial Relations

Commission within two months after its determination as collective bargaining

agent or promulgation of this Ordinance whichever is earlier

2 It specifies the registration process (section 4) requirements for registration

(section 5 and 6) cancellation of registration (section 12) and appeal against

cancellation (section 13)

3 It provides safety to office bearers of trade union from victimization in the

form of transfer discharge or dismissal for applying for registration (section

10) and fine up to 20000 rupees for violation (section 65)

4 It provides the facility of Collective Bargaining Agent to a single union if it

has members not less than one-third of the total number of workmen if there

are more than one unions then who wins the referendum (section 20) and

identifies the bargaining and non bargaining issues

In Pakistan Collective Bargaining has its own Perspective Shafiq-ur-Rehman

(2003) expressed that collective bargaining in Pakistan instead of the issue of

wage rise typically covers a much wider range of issues including pecuniary

terms of employment (such as non statutory allowances and benefits) and non

pecuniary conditions of employment including job security and working

conditions (such as safety of work place and methods of production)

5 To meet the expenses this law allows the unions to collect the subscription by

check-off (section 21)

70

6 It contains provisions about workersrsquo participation in the management of

establishment For this it permits the establishment of Joint Works Council

According to section 24 every establishment which employs fifty persons or

more shall set up a Joint Works Council consisting of not more than ten

members in which workers participation shall be to the extent of forty per cent

and the Convener of the Council shall be from the management and the

employers representatives shall be from amongst the Directors or their

nominees and the workers representatives shall be the office bearers of

collective bargaining agent The Joint Works Council shall deal the matters

like (i) improvement in production productivity and efficiency (ii) provision

of minimum facilities for the workers employed through contractors as are not

covered by the laws relating to welfare of workers (iii) promoting settlement

of differences through bilateral negotiations (iv) promoting conditions of

safety and health for the workers (v) encouraging vocational training within

the establishment (vi) taking measures for facilitating good and harmonious

working conditions in the establishment (vii) provision of educational

facilities for children of workmen

7 It defines industrial disputes and provides for negotiation between employer

and workers to reach settlement (section 25) conciliation in case negotiation

fails (section 26 to 29) Arbitration in case conciliation also fails (section 30)

and finally a court award binding on all parties (section 33) It also provides

facility of appeal in high court against labor courts awards (section 48)

8 It gives right of strike to workers and lock out to employers to press for their

just demands (section 31) and authorizes government to prohibit strikes in any

public utility service establishment (section 32)

9 It contains provisions about labor courts (section 44) their functions powers

procedure and awards (section 45 46 and 47)

10 It also provides provision about National Industrial Relations Commission and

its functions and powers for registration of industry wide unions and settlement

71

of their disputes (section 49 to 53) and dealing with unfair labor practices

(section 63 and 64)

11 It identifies unfair labor practices on the part of employers (section 63) and

unfair labor practices on the part of workmen (section 64) and penalties for

unfair labor practices (section 65)

It defines rights and duties of employers and rights and duties of workers

(Schedule II) as

Employers Rights

(a) Right to conduct business-The employer shall have the right to manage

control and use the property of his enterprise and conduct his business in any manner

considered appropriate by him

(b) Right to manage-The employer shall have the right to use available resources

including human resources efficiently and effectively in the best interest of the

enterprise

Employers Duties

(a) While exercising the right to conduct business and the right to manage the

enterprise the employer shall act in accordance with the law and shall comply

with the law faithfully

(b) The employer shall protect rights of the workers as guaranteed under the law or

secured to them by any award agreement or settlement in force

(c) The employer shall protect and safeguard the interest of his workers and take

measures within his resources for their socio-economic uplift and welfare He

shall create an environment congenial for enhanced productivity of labour and

maximum output of the enterprise

(d) The employer shall respect the right of the workers to employment wages

decent living and better quality of working life

72

Workers Right

(a) Right to work wage and welfare It is the right of a worker to work

according to the job assigned and to receive wages as per agreed terms and conditions

of employment and to such welfare benefits and safety measures as one is entitled to

according to law agreement settlement and award

(b) Right to freedom of association and collective bargaining and other rights

secured or guaranteed under this Ordinance and other laws Worker has inherent

right to trade unionism and collective bargaining and the right to enjoy the benefits

guaranteed to him under the law rules and regulations settlement award or

agreement

Workers Duties

(a) Worker will perform his duty as assigned by the employer or his

representative according to his best ability with due diligence care honesty

and commitment

(b) Worker will fully observe norms of organizational discipline

(c) Worker in exercise of his right will fully respect the rights of the employer

and will cooperate with him in the efficient performance of the business of the

establishment or enterprise as the case may be

332 Labor Laws Granting Rights

3321 Workmen compensation Act 1923

This act provides for the payment by certain classes of employers to their

workmen of compensation for injury or death by accident

3322 Factories Act 1934

It governs the working conditions of the industrial workers and consolidates and

amends the law made from time to time by provincial governments for regulating labor

73

in factories It is applicable to factories where 10 or more workers are working or were

engaged to work on any day of the preceding 12 months This legislation regulates

working hours paid holidays and conditions of employment of workers It also

provides for hygienic and safe working conditions and environment labor inspection

submission of various returns by employers penalties for violation of provisions of act

and employment of welfare officer by factories employing more than 500 workers

3323 Payment of wages Act 1936

This law defines wages and regulates the conditions of payment of wages to

workers It is applicable to workers employed in factories railways transport

plantation workshops and establishments of contractors According to this law

employer shall pay wages to workmen in the current currency on a working day before

the expiry of the tenth day after the expiry of the wage period and no wage period will

exceed one month

3324 The minimum wages Ordinance 1961

There was no law to provide for the fixation of minimum wages particularly for

large number of workers of smaller establishments who had no bargaining capacity

with employer With this consideration government of Pakistan Promulgated the

Minimum Wage Ordinance 1961 with the objective to create an institution to determine

minimum wage rates for different categories of workers in different industries

Consequently Tripartite Minimum Wage Boards were formed in all the provinces with

powers to examine the general price level ability of the establishment to increase

wages and other relevant factors for determination of minimum wages and refer them

to concerned provincial government

3325 Social Security Ordinance 1965

This law is applicable to all industrial and commercial establishments and

provides for a scheme of social security of insured employees and their dependents in

the event of sickness injury or death The employers pay contribution to the provincial

Social Security Institution at the rate of 7 of the wages of insured person

74

3326 The industrial and commercial employment (standing order) Ordinance 1968

This ordinance lays down the minimum terms and conditions of employment of

workers in industrial and commercial undertakings where 20 or more workmen are

employed or were employed during the preceding 12 months The ordinance provides

for payments of bonus group incentives schemes group insurance gratuity provident

fund termination and dismissal from employment redundancy re-employment of

redundant workers etc

3327 The companies profit (workersrsquo participation) Act 1968

This law is applicable to industries or establishments employing 50 workers or

whose paid up capital is Rupees 2 million or whose value of fixed assets is 4 million

Employers of these industries are required to allocate 5 percent out of their net profit

among the workers Any amount left over after distribution of the workers shares as

laid down under the rule is transferred to the Welfare Fund established under the

provisions of workers Welfare Fund Ordinance 1971

3328 The shops and establishments Ordinance 1969

It was enforced with effect from 30th June 1969 This ordinance was to amend

and consolidate the law relating to the hours of work over time weekly and festival

holidays annual casual and sick leaves time of payment of wages and other terms and

conditions of work and employment in shops and commercial industrial and other

establishments and matters connected therewith

3329 The minimum wages for unskilled workers Ordinance 1969

Government of Pakistan promulgated this ordinance in order to provide

minimum wages to unskilled workers of the industrial and commercial undertakings

employing 50 or more workers The minimum wages have been revised from time to

time Fixation of minimum wages during last fifteen years is given here

75

Period Minimum Wage in Pak Rupees

From Ist July 1993 1500-

From 1st July 2001 2500-

From 1st July 2005 3000-

From 1st July 2006 4000-

From 1st July 2007 4600-

From 1st July 2008 6000-

33210 Workers welfare fund Ordinance 1971

This law provides for establishment of workersrsquo welfare fund for providing

residential accommodation financing other welfare measure including training re-

skilling and investment in securities approved by government For this fund initial

contribution of 10 crores rupees (100 million) was made by Federal Government and

every industrial establishment having income of one hundred thousand rupees or more

in a year is required to pay 2 percent of its income in this fund

33211 Workers children (education) Ordinance 1972

This law provides the payment of Rupees 100- per annum per worker by

employer to the provincial government and government in return provides free

education up to matriculation level and thereafter in poly technique or vocational

institutes to the children of workers

33212 Employees cost of living (relief) Act 1973

Government promulgated Employees Cost of Living (Relief) Act 1973

applicable to undertakings construction industries factories mines road transport

services newspapers establishments The purpose of this law was providing payment

of cost of living allowance to workers to overcome the adverse effects of inflation on

their purchasing power It had been amended and improved with the passage of time It

76

was promulgated first time on 17th September 1973 and enforced from 1st August

1973 but later on re-enacted by parliament in December 1973 Initially parliament was

empower to amend the allowance from time to time but later on Ministry of Labor as

empowered to grant increases in the Cost of Living Allowance through notification

33213 Employees old age benefit Act 1976

This law provides for old age benefits to persons employed in industrial and

commercial establishments This law is applicable to industry and establishment

employing 10 or more workers Employers contribute 5 of the wages of secured

person employed to the Old Age Benefit Institution The male employees after

attaining 60 years and female after 55 years can receive monthly pension The

survivors of the employees are also entitled for this

333 Labor Policies

The Industrial Relation laws of Pakistan were gradually improved through

amendments in existing laws and enacting fresh laws so that provisions may become

compatible to the changing socioeconomic conditions of the country and any further

change in future It was done through labor policies Since independence five labor

policies have been announced by the government in the years 1955 1959 1969 1972

and 2002 which laid-down the parameters for the growth of trade unionism the

protection of workersrsquo rights the settlement of industrial disputes and the redress of

workers grievances These policies covered a broad spectrum of issues and envisaged

to provide for permanent transformation of laws to meet the expanding industrial base

of the country These policies also provided for compliance with international labor

standards ratified by Pakistan The effects of policies are reflected in the

metamorphosis that the labor laws underwent after the implementation of these

policies Here is a brief of these policies

3331 First policy (1955)

It was announced in August 1955 for achieving following objectives

i The growth of healthy unionism

77

ii Settlement of disputes through joint consultation

iii Protection of workers rights

iv Maintenance of industrial peace and harmony in labor management

relations

v Speedy settlement of industrial disputes through adjudication and

effective implementation of awards and

vi Welfare of workers and avoidance of their victimization and

exploitation

3332 Second policy (1959)

It was announced in February 1959 under following guiding principles

i Promotion of healthy unionism

ii Promotion of sound labor management relation

iii Provision of settlement of industrial disputes through peaceful means

iv Provision of social amenities as health education wages etc in

relation of work

v Implementation of ratified ILOrsquos Conventions and recommendations

vi Suitable means for reducing unemployment

vii Creating employment agencies and formation of employment

programmes

3333 Third policy (1969)

Third policy was announced in 1969This policy resulted in the introduction of

legislation guaranteeing freedom of association and the right to collective bargaining

in accordance with ILO Conventions 87 and 98 ratified by Pakistan A system of

78

equitable distribution of gains was put in place in the form of enactment of laws

relating to workers welfare and minimum wage of workers Salient features of this

policy are listed below

i- Measures to encourage the growth of trade unions

ii- Introduction of concept of collective bargaining agent

iii- Strengthening the scope of collective bargaining agent by giving rights

of strikes and lockouts to workers and employers respectively

iv- Extension of the principles collective bargaining of public sector

workers

v- Fixation of minimum wages of workers

vi- Institutional arrangements for minimum wages board

vii- Establishment of workers welfare fund for providing residential

accommodation etc to workers and

viii- Mechanism for settlement of industrial disputes

3334 Fourth policy (1972)

It was announced in 1972 As a result of this policy reforms in the system of

labor legislation were made which envisaged workers participation in the

management extension in the scope of labor laws enactment of laws relating to

employees old-age benefits workers children education introduction of statutory

bonus and group insurance schemes establishment of quasi-judicial body namely

National Industrial Relations Commission and the procedure for redress of workers

individual grievances

The guiding principles of this policy were

i- Emphasis on workersrsquo participation in management of industry

79

ii- Workers participation in the management committees work councils

and joint management boards

iii- Strengthening of work council

iv- Increase of workers share in companies profit from 25 to 5

v- Ensuring job security

vi- Bonus payment as statutory obligation of employer

vii- Speedy redressal of individual grievances through shop stewards

3335 Fifth policy (2002)

The draft of this policy was announced in 1999 but policy was approved in

2002 The principles objectives and action programme of the policy concentrate on

the creation of relationship of trust and cooperation between employer and employee

under the strategy of least intervention by the state A visionary approach adopted in

the Labor policy is a focus on dignity of labor fair balance of bargaining power and

productivity-based work culture with fair and equitable distribution of gains and

proceeds of the industry amongst employees entrepreneurs and the society at large

Principles Objectives and Initiatives of policy are

1 Promotion of Healthy Trade Unionism

Healthy trade unionism based on freedom of association and an effective

collective bargaining system is a pre-requisite for industrial peace productivity and

socio-economic uplift of labor An environment for growth of healthy and responsible

trade unionism will be created by encouraging responsible and representative trade

unions

2 The system of bilateral and tripartite social dialogue shall be strengthened and

streamlined to promote industrial peace and harmonious labor-management relations

Support to bilateral and tripartite mechanisms for policy formulation self-regulation

80

and peaceful resolution of disputes Bilateralism is the core element of the new labor

policy

3 Regulatory authority of government to be exercised only when bilateral

mechanisms fail to resolve disputes

4 Consolidation and simplification of labor laws Existing voluminous labor

legislation is overlapping in its coverage in several areas and anomalous in definitions

and scope The variety and complexity of labor laws has contributed adversely to

industrial relations system Need for rationalizationconsolidation of the existing laws

was acknowledged in this policy Therefore it was proposed to simplify and

consolidate these laws into following six basic laws relating to

1 - Industrial Relations

2 - Conditions of Employment

3 ndash Payment of Wages

4 - Human Resource Development

5 - Occupational Safety and Health

6 - Labor Welfare and Social Protection

5 Structural legislative changes and restructuring simplification and

minimization of Labor Judicial System to provide speedy justice in labor

sector

6 Promotion of employeesrsquo social security and social insurance programs and

improvement of labor welfare institutions namely Workers Welfare Fund

Employees Old Age Benefit Institutions and Provincial Employees Social

Security Institutions

Institutions responsible for social protection social insurance and labor welfare

need to be made fully autonomous and effective by restructuring their respective

81

management boards to ensure adequate labor and employer representation and to

strengthen their tripartite character Policy-making coordination and monitoring of the

functioning of these institutions will be entrusted to these tripartite boards exclusively

7 Progressive extension of labor laws and welfare measures to informal and

unorganized sectors

8 Special emphasis on workersrsquo children education

9 Combating child and bonded labor

10 Elimination of gender discrimination to reinforce gender equality

11 High priority given to occupational safety and health Policy provides for

enactment of law covering all workplaces and establishment of a National

Tripartite Occupational Safety and Health Council to meet the objective of

providing adequate safety and ensuring compensation to workers

12 In this policy importance of research in labor related disciplines and labor

administration necessity of training for improvement of the system and up-

gradation of the personnel have been acknowledged Policy provides for re-

organizing the existing research and training institutes and measures to

promote research and training activities on most modern lines to meet the

present day requirements

3336 Labor Protection Policy 2005

This provides protection to workers in five areas

1 Basic Rights

2 Working Conditions

3 The Working Environment

4 Social Security

82

5 The Living Environment

3337 Labor Inspection Policy 2006

Above policies and laws although important in providing guidelines and

legally enforceable standards mean relatively little unless arrangements are in place to

ensure the highest possible degree of compliance with legal provisions

Therefore government of Pakistan framed out Labor Inspection Policy 2006

after a consultation between government officials employersrsquo and workersrsquo

representatives throughout the country It is also in compliance with ILOrsquos convention

81 ratified in 1953 by government of Pakistan

This policy provides a new direction for the nationrsquos labor inspection systems

to enable them to respond to new approaches on a wide range of labor protection

issues It is integrated labor inspection policy having a modern view of labor

inspection placing the emphasis on prevention protection and improvement with

scope in following three areas

1 The terms under which workers are employed including wages hours of work

allowances leave and other benefits established by law or agreement

including protection against unfair dismissal and protection against

victimization

2 The conditions under which work takes place with regard to the safety of

workers and the action required to identify eliminate minimize and control

safety hazards concerning machinery and equipment work processes and

substances including chemicals

3 The general environment in which work takes place with regard to heat and

ventilation dust noise illumination and related factors likely to contribute to

illness or disease arising from the workplace

In this policy institutional arrangements are proposed for its implementation

Accordingly the Ministry of Labor Manpower and Overseas Pakistanis will establish

83

a National Labor Inspectorate as the central inspection authority to serve as the focal

point for the nationrsquos inspection activities However government supports the system

of self-inspection and self-reporting which means self-responsibility with managers

and workers assuming responsibility for compliance with standards concerning safety

and health and working conditions in the workplace Under this approach managers

and workers take the necessary steps to address and resolve their problems and

disagreements over labor protection issues Where the enterprise has a trade union

self-responsibility takes place through collective bargaining where managers and

workers come together and talk to resolve their differences with the outcome of their

discussions leading to a negotiated and legally binding agreement

These laws and policies pave way of granting rights and benefits to workers

but these are got implemented by the efforts of labor unions In some cases they fix a

minimum level of benefit and unions exert efforts to secure more than this For

example a level of minimum wage is fixed by government but workers receive more

than this Government fixed maximum weekly hours 48 but unions got them reduced

and 48 hours are only in one organization and in all other organizations are less than

this

CHAPTER 4 RESEARCH METHODOLOGY

41 THEORETICAL FRAME WORK

This research study is aimed at investigating the role of labor unions in HRD

by exerting efforts in Pakistanrsquos organizations for exacting benefits for workers from

employer or management motivating and pursuing workers to perform efficiently for

interest of organization If workers are not benefited properly they would be under-

developed being physically weak unsatisfied and de-motivated so will be inefficient

human resource for their organization With inefficient human resource no

organization can gain progress The efforts of unions in this research are restricted

with in the organizations only

If unions are securing benefits for workers then workers should be satisfied

with them and if unions are also serving the ends of employers then employers should

also be satisfied with their role so unions will be successful in their role playing

Success of unions in playing the role for development of human resource of

organizations will be estimated by measuring satisfaction of workers on unionsrsquo

efforts for securing benefits for them and also satisfaction of employers on unions for

motivating workers for better performance ie productivity or efficiency increase and

making harmony at workplace

411 Research Model and Variable Formation

In Industrial Relations when unions are exerting efforts for securing interests

of their workers and also motivate workers to do job dedicatedly for employers benefit

then both workers and employer are satisfied with union then unions are successful It

means unionsrsquo success (Su) is function of satisfaction of workers (Sw) and satisfaction

of employer (Se) This is expressed mathematically in the form of equation

85

Equation -1

[Su = f (Sw Se)]

Bernard (1998) is of the view that an areas joblessness helps to determine the

ability of workers and unions to get wage rises and it is difficult to secure gains when

unemployment threatens the livelihood of workers Holley Jr et al (2001) expressed

that the ability to achieve economic gains in the form of higher wages and improved

benefits is one of the important criterion workers use to gauge the effectiveness of

unions

Therefore in determination of the facts about role of unions or success one

variable used in this research is satisfaction of workers (Sw) on the efforts of unions in

securing benefits for them

For determining satisfaction of workers (Sw) on efforts of unions in securing

benefits for them 15 variable giving direct benefits to workers have been made base

These fifteen variables are showing unionsrsquo efforts for securing workers benefit

Satisfaction of workers is a moderating variable Because satisfaction of workers is

independent variables for purpose of determining unionsrsquo success (Su) as unionsrsquo

success depends on it but it further dependent on 15 variables for its own

determination

The satisfaction of the workers on the performance of unions in this research is

estimated by taking lsquocombine mean of 15 independent variables as shown in the

following equation (ie equation 2) It is a lsquocombine meanrsquo because values of these

fifteen variable have also been calculated as arithmetic mean of the data collected for

variables

86

Equation 2

SW = (Wris + Fbft + Jsec + Td + Linc + Wcon + Ot +

Hfac + Ced + We + Wdf + Prb+ Rfac + Top + Ir) 15

Where Sw is Satisfaction of Workers

Wris is Wag-Rise

Fbft is Fringe Benefits (bonus Allowances)

Jsec is Job Security

Td is Time Reduction

Hfac is Health Facilities

Ced is Children Education

Ot is Over Time

Wcon is Working Conditions

Linc is Leaves Increase

Prb is Post retirement Benefits Pension

Rfac is Recreation Facilities

Top is Training opportunities

Wdf is Wage Difference Reduction

Ir is Informing Workers about their Rights

We is Workersrsquo Education

15 is number of variables in this equation

In unionsrsquo HRD Model equation satisfaction of employers is also essential

and according to lsquoexisting problemrsquo of this research unions have been alleged and

there are misconceptions about them so satisfaction of employers is also to be

determined

87

For determining satisfaction of employers on efforts of unions in protecting

their interest motivating workers for increase of productivity or efficiency of workers

and workplace peace and harmony have been made base These are two variables

measuring unionsrsquo efforts for employersrsquo direct benefit Satisfaction of employers (Se)

is also moderating variable Because it is independent variables for purpose of

determining unionsrsquo success (Su) as unionsrsquo success depends on it but it further

dependent on 2 variables for its own calculation This is expressed in equation 3

Equation 3

Se = (Pin + Wph)2

Where Se is Employersrsquo Satisfaction

Pin is Workersrsquo Productivity Efficiency improvement

Wph is Work Place Harmony

2 is number of Independent variables in the equation

[Sources of variables Bernard (1998) Wong (2000) Holley Jr et al (2001) Aidt amp

Tzannatos 2001) Mishel and Walters (2003) George (2004)]

The conceptual frame work is illustrated in Figure 1

About these variables extensive literature references have been cited in chapter

two Concerned sections of every variable are given below

88

Variables Concerned Sections in Literature Review Page

Wris 231 Wag-Rise 21

Fbft 233 Fringe Benefits 25

Jsec 234 Job Security and Employment 26

Td 235 Time Reduction (Duty Hours) 28

Hfac 239 Health Care and Social Security 31

Ced 2314 Children Education 39

Ot 236 Payment of Over Time 29

Wcon 238 Working Conditions 30

Linc 237 Paid Leaves 29

Prb 2310 Post retirement Benefits (Pension) 33

Rfac 2313 Recreation and Social Services 37

Top 2311 Training Opportunities 34

Wdf 232 Reduction in Wage Inequality 24

Ir 2315 Workers Awareness 39

We 2312 Workersrsquo Education 36

Pin 241 Productivity Efficiency amp Profitability 39

Wph 242 Work Place Harmony amp Cooperative Role 46

89

Figure 1 Showing sequence of variables effect

Information of rights

Worker Education

Training Opportunities

Recreation Facilities

Post retirement Benefit

Children Education

Health Facilities

Working Conditions

Over Time

Wage Rise

Fringe Benefits

Job Security

Leaves Increase

Time Decrease

Productivity Increase

Workplace Harmony

Employerrsquos Satisfaction

Workerrsquos Satisfaction

Unionrsquos Success

Wage Differences

90

412 Research Hypotheses

The null hypothesis depends on 17 variable hypotheses (H1 to H17) to be

proved true so before testing null hypothesis it is essential to test these variable

hypotheses

Hypothesis 1- Unions did not exert efforts for wage rise of workers

Hypothesis 2- Unions did not exert efforts for fringe benefits like bonus and

allowances of workers

Hypothesis 3- Unions did not exert efforts for Job Security of workers

Hypothesis 4- Unions did not exert efforts for Time decrease or offer

resistance against time increase of workers

Hypothesis 5- Unions did not exert efforts for exacting health facilities

Hypothesis 6- Unions did not exert efforts for workers education facilities for

children of workers

Hypothesis 7- Unions did not exert efforts for Overtime payment for over

working

Hypothesis 8- Unions did not exert efforts for better working conditions

Hypothesis 9- Unions did not exert efforts for Leaves increase or offer

resistance against leaves decrease

Hypothesis 10- Unions did not exert efforts for post retirement benefits like

pension

Hypothesis 11- Unions did not exert efforts for arranging recreation facilities

Hypothesis 12- Unions did not exert efforts for arranging training opportunities

Hypothesis 13- Unions did not exert efforts for decreasing wage inequalities

91

Hypothesis 14- Unions did not exert efforts for informing workers about their

rights

Hypothesis 15- Unions did not exert efforts for workersrsquo education

Hypothesis 16- Unions exerted no efforts for motivating workers to increase

productivity

Hypothesis 17- Unions exerted no efforts for workplace harmony

On the basis of above Variablesrsquo Hypotheses the null hypothesis has been

developed If the above statements are proved true then null hypothesis will be proved

true otherwise alternate hypothesis will be accepted

Hypotheses Statement

Null Hypothesis H0 Unions are not beneficial bodies in industrial relations

for HRD

Alternate Hypothesis HA Unions are beneficial bodies in industrial relations for

HRD

42 POPULATION AND SAMPLING

Labor unions of public and private sector organizations their members office

bearers of the unions employers or management or their representatives and union

non-member temporary employees of Pakistanrsquos organizations are population for this

study

The selection of sample was completed in two stages In first stage

Organizations to be studied were sampled and in second stage individuals to be

interviewed (respondents) were sampled

421 Stage-lsquoIrsquo Sampling of Organizations

Due to limitations of access to all the unions only the organizations of

Islamabad and Rawalpindi (twin cities) being capital territory were targeted for

92

sampling Because the Head Offices or Head Quarters of almost all national level

countrywide organizations are situated in the Islamabad Therefore samples of big

public semi public and private organizations having their head offices in Islamabad

the federal capital of the country and some private institutions have been picked

These organizations have different activities such as manufacturing exploring oil

refining printing and publishing telecommunication telecasting town planning and

rendering municipal services power supply gas supply and banking (see appendix D-

1)

422 Stage-lsquoIIrsquo Sampling of Respondents

From sampled organizations the office bearers of CBA unions as unionsrsquo

representative Human Resource officials as management or employersrsquo

representative permanent workers and contract temporary workers were sampled

4221 Sampling of union office bearers

For union views about unionrsquos role respective President or General Secretary

were interviewed from each CBA union General Secretary or President were sampled

because of being most influential and aware about unionrsquos working and performance

their fully engagement in negotiation with management comparatively more dealing

with workers and well awareness with unionsrsquo matters and problems (appendix A-11)

4222 Sampling of permanent (Unionized) workers

For the view point of workers who are the actual partners of the activity and on

whose behalf and for whose benefit unions are formed thirty to seventy workers were

randomly picked from each organization in their head offices different sub offices or

branches or field offices of the organization and personally interviewed by the

researcher on the designed questionnaires (appendix A-1 to A-10)

93

4223 Sampling of management

For management or employers views point about role of labor unions

respective human resource officials having official interaction and dealing with unions

were interviewed from each organization (appendix A-11)

4224 Sampling of temporary (Non-unionized) workers

Ten temporary workers who were not members of union were also randomly

picked and interviewed from organizations except PCP where no temporary worker is

employed

Sampling details of permanent and temporary workers are in appendix D-2

43 DATA COLLECTION INSTRUMENTS

Questionnaires were used as research instruments for data collection

431 Questionnaires and their Structure

Four questionnaires were framed (see appendices G1 to G-4) First for Office

Bearers of the unions (Questionnaires-1) second for Permanent Workers of

organizations (Questionnaires-2) third for Employers (Questionnaires-3) and fourth

for Temporary Workers not covered by unions (Questionnaires-4)

Questionnaire 1 2 and 3 comprise all 20 questions designed in the alignment

with research questions variables Questionnaire 4 comprises only 10 questions

In questionnaires 1 2 and 3 first 17 questions are common In questionnaire-1

from office bearers of union first fifteen questions are about their efforts for direct

benefits of workers such as 1- Increase of workers Wages 2- for any Fringe Benefit of

workers 3- for Job Security 4- for Duty hoursTimings 5- for increase of workers

Leaves 6- for payment of Overtime to workers 7- for improving Working Conditions

8- for Health care of workers and their families 9- for facilities provided for

Education of workers Children 10- for Post Retirement Benefits of Workers such as

pensions 11- for Recreational Facilities for workers 12- for Training facilities for

94

workers 13 is about Unionsrsquo efforts for decreasing workers officers Wagesalary

difference 14- is for unionrsquos efforts for informing workers about their Rights as

worker and 15- is about unions efforts for arrangements for workers education These

are questions giving direct benefit to workers

First these questions were asked from unionrsquos office bearers that what they did

for benefit of workers It is unionsrsquo claim of efforts exerted and the same questions

were asked in second questionnaire from workers whether unionsrsquo claim is right or

false and workers answer is to certify unions claim of efforts and satisfaction level of

workers will be a measure of unionsrsquo efforts In the third questionnaire the same

questions were asked from management whether unionsrsquo officials have really resorted

to management for gaining benefits for workers from management and answer of

management will be an evidence supporting or denying unionsrsquo claim

Two questions 16 and 17 are about unionsrsquo efforts for the benefits of

organization or employer as 16- efforts to increase workers Productivity Efficiency

and 17- is about unionsrsquo efforts to increase workplace Harmony

First these questions were asked from Unionrsquos office bearers that what they did

for benefit of employer or management actually it is their claim and the same

questions were asked in second questionnaire from workers whether unions claim is

right or falsersquo about exertion of unionsrsquo efforts and workers answer is an evidence for

confirming or falsifying unionsrsquo claim of efforts In the third questionnaire the same

questions were asked from management whether union motivates workers to benefit

employer (by improvement of productivity or efficiency of workers and work place

harmony) and what is satisfaction level of management on unionsrsquo efforts Answers of

management will certify unionsrsquo claim and its satisfaction level will be a measurement

of unionsrsquo efforts

In first questionnaire other three questions are general as 18- is about existence

of Work Council in the organization 19- is about unionsrsquo signing of charter of demand

and 20- is about provision of any training to office bearers as unionist by any agency to

conduct unionrsquos matters

95

In second questionnaire question 18 is about essentiality of unions 19 is about

inter union relations if there are two or more unions in the organization and question 20

is about comparison of unionsrsquo strength or weakness over the passage of time

In questionnaire lsquo3rsquo first 17 questions are common to questionnaire 1 and 2

While questions 18- is about existence of Work Council in the organization 19- is

about union signing charter of demand 20-is about Union acceptance of any wage cut

in difficult financial days of the organization for its benefit

Questionnaire lsquo1rsquo provides information about unionsrsquo claim of efforts exerted

for the benefits of workers as measured by variables eg wage rise fringe benefits job

security time reduction leave with pay payment of over time working conditions

health facilities children education facilities pension post retirement benefits

recreation facilities workersrsquo training decrease of wage salary difference of workers

and officers informing them about their legal rights and workers educational

opportunities It also provides information about efforts of unions for benefit of

organization or employer measured by the variables like their contribution for

improvement of productivity and efficiency and work place harmony By responding

these questions unionrsquos representative claim their efforts and struggle for securing

interest of employees and employer which is proved or disproved by the responses of

workers in questionnaire 2 and by management in questionnaire 3

Questionnaire 2 provides information about the responses of workers about the

claims of union office bearers about their effort for betterment of workers as measured

by variables eg wage rise fringe benefits job security time reduction leave with

pay payment of over time working conditions health facilities children education

facilities pension post retirement benefits recreation facilities workersrsquo training

decrease of wage salary difference of workers and officers informing them about

their legal rights and workers educational opportunities In this questionnaire workers

confirm or reject the unionsrsquo claims of exerting efforts for workers betterment and

stand witness for unions claim of exerting efforts for benefit of employer like

motivating for improvement of productivity and efficiency work place harmony In

this questionnaire permanent workers have been interviewed

96

Questionnaire 3 provides responses of management about the same 17

variables showing contribution of unions for benefit of employer by improvement of

productivity and efficiency and work place harmony (question 16 and 17) besides

showing management responses on questions about the benefit of workers In this

questionnaire employer or managementrsquos representative confirms or rejects the

unionrsquos claim of exerting efforts for the benefits of organization (questions 16 and 17)

and stand witness for unions claim of struggle for workers benefit (questions 1-15)

because when ever they seek any benefit for workers they have to demand it from

management Here heads of HR departments or members of management and senior

officials who have to deal with unions or unionized employees have been

interviewed because unions negotiate to them for securing benefits for workers

In fourth questionnaire temporary workers (non members or non covered

employees) provide the data about the variable of workers interest eg wage rise job

security time reduction improvement of working condition children education

facilities health facilities leave with pay bonus payment overtime payment effects

of unions efforts on temporary workers and essentiality of unions etc have been found

to know the difference between facilities of unionized and non unionized employees

Questions in these questionnaires regarding variables were designed to get

response in two forms I- Yes and No and then the satisfaction level of the respondent

on the provision of respective benefit Unions representatives in Questionnaire-I reply

all the 20 questions in Yes or No

Workers in Questionnaire-2 reply all the questions regarding 15 variables

(questions 1 to 15) measuring unions efforts for securing their benefits in Yes or No

and also by expressing their satisfaction level on five points scale ranging from very

unsatisfied to very satisfied but reply as witness in Yes or No by endorsing or

rejecting for questions (16 and 17) regarding management benefits as witness

Management representatives in Questionnaire-3 reply all the questions

regarding 2 variables measuring their benefits in Yes or No and also express their

satisfaction level on five points scale ranging from very unsatisfied to very satisfied

as main beneficiary (question 16 and 17) but for other questions which are for benefit

97

of workers (question 1 to 15) management representatives reply in Yes or No

endorsing or rejecting as witness the claims of union

All the data were collected from sampled respondents by researcher by paying

visits to every respondent

44 PREPARATION OF SATISFACTION LEVEL SCALE

In the present research researcher proposed 17 variables 15 measuring unionsrsquo

efforts for workers and 2 measuring unionsrsquo efforts for employersrsquo benefits On these

efforts the satisfaction of relevant respondent is measured on 5 points Satisfaction

Level Scale (SLS) on Likert Sacle as suggested by Emory (1980) and Cooper amp

Schindler (nd) In this scale weight 5 is allotted to Very Satisfied 4 is allotted to

Satisfied 3 is allotted to Indifferent 2 is allotted to Un-Satisfied and 1 is allotted to

Very Un-Satisfied

45 PILOT STUDY

To test the completeness of questionnaires with respect to information

collection and validity of the instruments a pilot study was conducted in first week of

December 2006 It was found that due to Name workers were reluctant to respond

Besides this the question number 6 regarding the overtime was not included and

questions 18 19 and 20 about unions essentiality inter union relations (between CBA

and non CBA unions) and comparison of unions strength or weakness as compared to

past were also not present So later on name was deleted and question 6 about

overtime and questions 18 19 and 20 were added

46 CODES AND ABBREVIATIONS

In tables due to space limitation formula terms column captions and row stubs

have been abbreviated For abbreviations see appendix E-1) Variable have also been

coded for equations preparation and for writing in the tables in appendix E-2

98

47 STATISTICAL METHODS APPLIED

Collected raw data were converted in to meaningful data by tabulation for

applying statistical techniques of Percentage Arithmetic Mean ( ) Chi square (χ2) and

Comparisons to draw conclusions Then these statistical techniques were applied Both

Statistical Techniques ie Descriptive Statistics in the form of Percentages and

Arithmetic Mean and Inferential Statistical Techniques in the form of Chi square χ2

were used Simple statistical methods have been used so that those readers who have no

statistical background specially workers unionsrsquo office bearers and employers may also

understand and take benefit of this study Data collected on YesNo responses were

analyzed by using percentages and data collected on five points satisfaction level Likert

Scale were analyzed by using Weighted Arithmetic Mean as suggested by Emory

(1980) and Chi square test

The fourth method of comparison by comparing data of permanent workers

with temporary workers was also used to see the unionsrsquo role for seeking benefits for

workers

The formulae of Percentage Arithmetic Mean and Chi square are

471 Percentage

Percentage of Yes responses = Number of Yes responses 100 Number of

total responses

And

Percentage of No responses = Number of No Responses 100 Number of

total responses

472 Arithmetic Mean

Simple Arithmetic Mean is calculated by formula

99

Arithmetic Mean of frequency data is ( ) = ΣfXi n when mean is of one

organization (organizational means) or is of one variable (variable mean) of all

the organizations

Here lsquoΣ fXirsquo is total of responses multiplied by their respective value (weight)

from 1 to 5 (1 for VUS 2 for US 3 for IND 4 for S and 5 for VS) as

suggested by Emory (1980)

For estimation of mediating variables Combine mean of the weighted

arithmetic means of all the variables is to be calculated by application of

formula

Combine Mean = Σ i N

Where Σ i is sum of all the arithmetic means of all the variables and N is

number of variables which is 15 for combine mean calculation of workersrsquo variables

and 2 for combine mean calculation of employer variables

By the value of combine mean of variable-wise means of all the variables the

success of unions will be estimated If the value of the combined mean lies in the

satisfactory region being greater than lsquo3rsquo the value of indifferent weight then unions

are successful and beneficial bodies and are playing role in HRD of the organizations

If it is equivalent to indifferent then they are tolerable and if it lies in the

unsatisfactory region being less than lsquo3rsquo being below indifferent level then unions are

failed organizations and workers or employers are not satisfied with them and we can

conclude that unions are non-beneficial bodies in the organizations and are playing no

role in HRD of the organizations

100

473 Chi Square (χ2)

Formula for Chi square is χ2 = Σ (fo-fe)2fe or

χ2 = Σ (fo-fe)2fe

Σ = (sum of values)

fo = (observed value) calculated by adding all the vales in a column

fe = (expected value) calculated by dividing grand total by number of

columns

df (degree of freedom) = (c-1) (r-1)

df stands for degree of freedom

fo stands for observed frequency

fe stands for expected frequency

c stands for column

r stands for row

In this research Chi square as suggested by Emory (1980) and Cooper amp

Schindler (nd) has been applied on the totals of the columns of variable pertaining to

workers only and not on variables for employers because of limited number of

responses

The level of significance selected for making inference about population was

005

If calculated value of Chi square is more than table value at 005 significance

level at respective degree of freedom then our statement of assumption for respective

variable will be rejected and alternative view will be established

101

474 Comparison

Comparison has been made of admissible facilities enjoyed by permanent

(unionized) workers with temporary (non-unionized) workers in two lsquocomparison

tablesrsquo These comparable facilities were Wage Rise Fringe Benefits (bonus and

allowances) Job Security Weekly Working Hours Working Conditions Children

Education Facility Health Facilities Miscellaneous Allowances and Yearly Leaves

48 CALCULATIONS BY APPLYING STATISTICAL METHODS

For analyzing the data methods of percentage calculation arithmetic mean

calculation and chi square have been applied

481 Percentage Calculation of Yes No Responses

Questions 18 19 and 20 in the questionnaire 2 were answered in Yes No For

estimation of views percentage method has been applied For question 18 about the

essentiality of unions for the organizations if total of percentages of lsquoYesrsquo answers is

more than 50 then it means majority of workers is acknowledging the need of unions

for the cause of workers If the percentage of Yes answers for question 19 about the

inter unions relations is more than 50 percent it means that unionsrsquo mutual

relationships are good For Question 20 about the unionsrsquo strength as compared to

unions in the past if the percentage of Yes answers is more than 50 percent it means

that unionsrsquo of today are weaker than unions in the past

482 Means Calculations

Arithmetic Mean has been calculated of five point satisfaction level of

respondents as described by Emory (1980) and Cooper amp Schindler (nd) by giving

Value 5 to Very Satisfied (VS) 4 to Satisfied (S) 3 to Indifferent (IND) 2 to Un-

Satisfied (US) and 1 to Very Un-Satisfied (VUS) and accordingly multiplying their

frequencies with their respective value Then adding them and dividing them by

respective total frequency ldquonrdquo In Organization wise means n is obtained by

multiplying number of respondents of that organization with number of variables as in

case of ARL for workers satisfaction it will be 35 15= 525 (here 35 is number of

102

respondents and 15 is number of variables) For variable wise mean for workerrsquo

variable n will be 525 which is total number of respondents for any variable being

sample size When mean is calculated for organization it is lsquoorganizational meanrsquo and

when calculated for variable (in variable wise calculation) it is lsquovariable meanrsquo Then

all the variable means are added to each other and divided by number of variables

(total number of variables for workers is 15) to calculate lsquoCombined Meanrsquo of all the

variables of all the organizations

Organizational mean of variables for management variables have been

calculated organization wise by adding weights of responses of that organization and

dividing the sum by 2 which is number of variables benefiting employer for any

organization

Similarly lsquovariable meanrsquo of variables for unionsrsquo efforts for employers were

calculated by adding weighted values of responses of all the respondents for every

variable and then dividing it by 10 then these all variable means were added to each

other and divided by 2 to calculate lsquoCombined Meanrsquo which is direct measure of

employersrsquo satisfaction and consequently of unionsrsquo success

If Combined Mean is below Indifferent level by bearing value less than 3 than

it means workers or employers of organizations are not satisfied with unions efforts

and unions are not successful so unions are not beneficial bodies for organizations If

Combined Mean is equivalent to lsquoIndifferentrsquo by bearing value equal to 3 then it

means unions workers or employers of organizations are neither happy nor unhappy or

number of satisfied and unsatisfied workers is equal So unions if exist have no benefit

or harm or if not existing even then have no benefit or harm but if Combined Mean is

more than ldquoIndifferentrdquo level then majority of workers or employers of organizations

is satisfied with their efforts so their existence is required and we can conclude that

unions are beneficial bodies for organizations

These means have been calculated for responses of workers and for responses

of employermanagement organization-wise of all variables as well as variable-wise

of all the organizations

103

At every stage may be Organization Means Variable Means or Combined

Mean if its value is below 3 (which is weight allotted to ldquoIndifferentrdquo response level)

then it shows clearly that union is not efficient and beneficial It will prove the Null

Hypothesis that unions are not beneficial bodies for organizations and it is to be

accepted If the Mean is above 3 then it shows that the union is efficient and its

presence is beneficial so null hypothesis is to be rejected and Alternate hypothesis is to

be accepted

483 Chi Square Applications

To see the significance and to test assumption statements for every variable

Chi square technique has also been applied for variables pertaining to workers at 005

level of significance as has been applied for testing of statements by Ahmed (2004)

Aleem (2004) Where calculated value of Chi square is more than table value then the

assumption statement is to be rejected and accepted the alternate view point for that

variable It is another parameter to check the efficiency and efforts of unions for

seeking benefits for their workers Chi Square has been applied only on responses of

workers and not on responses of management because of very small number of

respondents

484 Comparison Applications

Comparison has also been made of facilities availed by unionized workers with

non-unionized temporary workers to see their efforts whether facilities had been won

by unions efforts or it was merely blessing of employer or government If there was no

difference than unions were also not beneficial bodies but if unionized workers were

enjoying more facilities and better terms of employment than unions are beneficial

bodies in the organizations

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS

According to theoretical frame work fifteen variables have been targeted for

measuring the efforts of union for benefits of workers These are Wages-rise (Wris)

Job-security(Jsec) Time-decrease (Td) Working-conditions (Wcon) Children-

104

education (Ced) Health-facilities (Hfac) Financial-benefits(Fbft) Over time payment

(Ot) Leaves Increase (Linc) Post Retirement and pension benefits (Prb) Recreation

facilities (Rfac) Training opportunities (Top) Decrease of wage salary difference

gape of workers and officers (Wdf) Informing workers about rights (Ir) and Workers

education These variables have been measured at five scale satisfaction level ie Fully

Satisfied valued as 5 Satisfied valued as 4 Indifferent valued as 3 Unsatisfied valued

as 2 and Fully Unsatisfied valued as 1 The Frequency of variables has been multiplied

with concerned value and then valued frequencies added and their sum has been

divided with sample size of the concerned organization for calculation of organization

mean and with whole sample for sampled mean

For every variable as value of Indifferent satisfaction level is 3 so if sample

mean is 3 then it means union is neither beneficial nor non-beneficial but tolerable and

there is no harm of union if not giving any benefit and no loss if not existing If mean

is less than three than union is not beneficial body and if mean is more than 3 than

union is a beneficial body More it is bigger than 3 the more beneficial is the union for

workers or more union has put efforts for acquiring workers benefit

Combine mean of all the variables means is obtained by putting their values in

equation 2 Details of codes used in the equation is in appendix E-2

SW = (Wrise + Fbft +Jsec + Td + Wcon + Ced + Hfac +

+ Linc+ Ot + Prb + Rfac + Top + Wdf + Ir + We+)15

This combined mean is measure of satisfaction level of workers and a

component of unionsrsquo success equation lsquoSu = f Sw Sersquo If combined mean is above

3 (indifferent level) unions are successful with reference to putting efforts for workers

benefits and value of combined mean above 3 will be a scale of level of success If

combined mean is 3 then unions are neither successful nor harmful If mean is below 3

then unions are failed and there presence in the organization is not benefiting so there

existence should be avoided

105

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits

Two variables have been targeted for measuring the efforts of unions for

employersrsquo benefits

These are efforts to increase workers productivity or efficiency (productivity in

manufacturing efficiency in non manufacturing and services) (Pin) and efforts for

work place peace and harmony (Wph) The Frequency of variablesrsquo is multiplied with

concerned weight and then weighted frequencies are added and their sum is divided

with sample size for calculation of sampled mean

As weight of indifferent satisfaction level is 3 so if sample mean is 3 then it

means union is neither beneficial nor non-beneficial but tolerable and there is no harm

of union if not benefited If mean is less than three than union in not beneficial body

and if mean is more than 3 than union is a beneficial body More it is bigger than 3 the

more beneficial is the union for workers Weighted average of all the variables has

been obtained and then all these means have been put in the equation

Se = (Pin + Wph)2

Here 2 is number of variables This gives the combined mean of employersrsquo

variables Combined mean is measure of satisfaction of employer with the unions

If combined mean is three then union has neither benefit nor harm or equally

satisfying and un-satisfying if less than 3 then employer is unsatisfied union is not

beneficial body for the employer of the organization and if it is bigger than 300 then

the employer is satisfied so union is beneficial body for the employer of the

organization

CHAPTER 5

DATA ANALYSIS AND RESULTS

This chapter is dedicated to present and analyze collected data by applying

statistical operations

51 DATA PRESENTATION

Data obtained from respondents by asking questions 1 to 17 in questionnaire 1

2 and 3 are tabulated in appendices F-1 to F-10

In appendices F-1 to F-10 every table has 11 columns First column contains

coded name of variable Columns 2 and 3 show answers of workers about unionsrsquo

role column 2 contains number of respondents replying in Yes and column 3 contains

number of respondents replying in No Columns 4 to 8 express satisfaction level of

workers from very satisfied to very unsatisfied Column 9 represents unionsrsquo response

on the same question It is claim of union about the services they rendered and it is

answered in YesNo Column 10 contains the managementsrsquo answers on unionsrsquo

performance as witness for efforts exerted for benefit of workers and certifier for

variables for benefit of management itself Column 11 shows the numerical value of

managementrsquos answer of variables pertaining to employersrsquo interest protected by

unions Data for all other tables drawn for analysis have been taken from these tables

Replies of questions 18 19 and 20 of questionnaire 2 are presented in table in

appendix F-11 replies of question number 18 19 and 20 of questionnaire 1 are

presented in table in appendix F-12 and replies of question number 18 19 and 20 of

questionnaire 3 are presented in table in appendix F-13

511 Organization-Wise Description of Respondents

Data collected from respondents pertaining to questions numbers 1 to 17 of all

the organizations have been tabulated organization wise in the appendices F-1 to F-10

Their description is given below

107

5111 Description of respondents of ARL

For Attock Refinery Limited (ARL) for unionrsquos opinion general secretary of

the union in the presence of president for managementrsquos view point manager HR and

among workers 30 permanent workers and 10 temporary or contract workers were

interviewed in Head office and Refinery at Morgah Rawalpindi Because of

difficulties of gaining access to the workplace only 30 workers of different trades were

randomly contacted in the parking administrative offices and outside of refinery at

different times randomly Majority of workers were interviewed during breaks and

after end of duty (appendices A-1 and B-1) Ten temporary workers were interviewed

similar way

5112 Description of respondents of CDA

In Capital Development Authority (CDA) for unionrsquos opinion president of the

union for managementrsquos view point Deputy Director Labor Affairs and among

workers 70 permanent workers were interviewed in head office and at divisional and

directorates offices field complaint office and rest-house workers (appendices A-2

and B-2)

For temporary workersrsquo opinion ten temporary workers were interviewed in

different offices

5113 Description of respondents of IESCO

In Islamabad Electric Supply Company (IESCO) for unionrsquos opinion general

secretary of the union for managementrsquos views manager HR and among workers 70

permanent workers and 10 temporary or contract workers were interviewed in head

office in various circle offices (office of Executive Engineer) divisional offices (office

of Sub Divisional Officer) grid stations and customer services centers Islamabad and

Rawalpindi (appendices A- 3 and B-3)

108

5114 Description of respondents of KTM

In Kohinoor Textile Mills (KTM) for unionrsquos opinion general secretary of the

union for managementrsquos views manager HR and among workers 35 permanent

workers and 10 temporary or contract workers were interviewed in Head office and

workers residential colony at Rawalpindi Because of difficulties of gaining access to

the workplace only 35 workers of different trades were randomly contacted in the

colony and in surroundings of the factory (appendices A- 4 and B-4)

5115 Description of respondents of OGDCL

In Oil and Gas Development Company Limited (OGDCL) for unionrsquos opinion

General secretary of the union and for managementrsquos view point manager HR and

among workers randomly picked 50 permanent workers and 10 temporary or contract

workers were interviewed in head office Islamabad at store I-9 Staff College (OGTI)

Islamabad and in different oilfields (appendices A-5 and B-5)

5116 Description of respondents of PCP

In Printing Corporation of Pakistan (PCP) for unionrsquos opinion general

secretary of the union and for managementrsquos views point Director Administration and

from workers randomly picked 50 permanent workers were interviewed from head

office and printing press Islamabad There is no temporary worker in the organization

(appendices A-6 and B-6)

5117 Description of respondents of PTCL

In Pakistan Telecommunication company Limited (PTCL) for unionrsquos opinion

General Secretary of the union and for managementrsquos view point General Manager

Human Resource and among workers randomly picked 70 permanent workers and 10

temporary or contract workers were interviewed in head office G-8 Islamabad

divisional engineers offices telephone exchanges revenue offices customers services

centers in Islamabad and Rawalpindi and line men working in the field (appendices

A- 7 and B-7)

109

5118 Description of respondents of PTV

In Pakistan Television Corporation (PTV) for unionrsquos opinion general

secretary of the union and for managementrsquos view point controller HR and

administration and among workers randomly picked 50 permanent workers and 10

temporary or contract workers were interviewed in head quarter (administration office

head office) PTV Main telecasting Station F-5 Islamabad at PTV ONE and ETV at H-

9 Islamabad (appendices A- 8 and B-8)

5119 Description of respondents of SNGPL

In Sui Northern Gas Pipe Line Limited (SNGPL) for unionrsquos opinion General

Secretary of the union and for managementrsquos views manager HR and among workers

randomly picked 50 permanent workers and 10 temporary or contract workers were

interviewed in General Manager office I-9 Islamabad in different departments such as

construction department billing department connection department meter reading

department sales department recovery department administration department and

marketing department and in revenue offices of Saddar Rawalpindi and Satellite Town

Rawalpindi and workers in the fields (appendices A- 9 and B-9)

51110 Description of respondents of ZTBL

In Zarhi Tarraqqiatti Bank Limited (ZTBL) for unionrsquos opinion general

secretary of the union and for managementrsquos view point Senior Vice President

administration and HR and among workers randomly picked 50 permanent workers

and 10 temporary or contract workers were interviewed in head office Zero Point

Islamabad at zonal office G-7 Islamabad and in some branches (appendices A- 10 amp

B-10)

51111 Workers responses of the questions about essentiality inter unions relations and unions status as compared to past

To find out whether unions are essential in the organizations or not what are

inter union relationships of unions where if unions are more than one in the

organization and what happened with the strength of unions with the passage of time

110

workers of the organizations were asked questions 18 19 and 20 respectively

Responses of workers are presented in table in appendix F-11 Three organizations

ARL PCP and ZTBL have single union so in analysis of question 18 their respondents

will not be considered in sample

51112 Unionsrsquo office bearersrsquo responses of the questions about work council charter of demand and unionistsrsquo training

These responses are tabulated in table in appendix F-12 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

51113 Management responses about work council charter of demand and wage cut

These responses are tabulated in table in appendix F-13 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA

Here data tabulated in appendices F-1 to F-10 have been analyzed Tables have

been constructed for this purpose Tables 1 to 10 are meant for variables pertaining to

workers Where unions are claimer workers are certifier as actual party and

management is witness Every table comprise 7 columns first column contains

variables column 2 to 6 contain workersrsquo responses with satisfaction level valued

from 5 for very satisfied (VS) to 1 very un-satisfied (VUS) about any effort and

column 7 contains total number of respondents for any variable Total of all the

columns has been multiplied by its value to obtain valued total and valued totals of all

columns from 2 to 6 added (such as in table-1 total of column two ie 32 multiplied by

its value ie 5 so valued total came 160 and valued total of column three that is 944

valued total of column four that is 402 and valued total of column five that is 96 and

their grand valued total is 1602 ) and divided by number of all the responses (450

111

which is product of number of respondents ie 30 multiplied by number of variables

ie 15) to get organizationrsquos mean that is 356 It is measure of satisfaction of workers

on efforts of union of the organization for their benefits

Tables from 11 to 20 are meant for calculating arithmetic means of responses of

variables pertaining to employer and contain 3 columns Column one is for variable

name column 2 contains responses of employer and column 3 contains values of these

responses Values in the column 3 have been added and their total has been divided by

number of variables ie 2 to calculate mean of responses of employer It is really

measure of satisfaction of employer on efforts of union of one organization for

employerrsquos interest

521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES

Organization wise arithmetic means and percentages of all the organizations on

the basis of the variables pertaining to workers have been calculated below in tables 1

to table 10

112

Table-1 Responses of Workers of ARL Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 2 20 8 - - 30

Fbft 8 16 4 2 - 30

Jsec 8 18 4 - - 30

Td 16 14 - - 30

Linc 24 6 - - 30

Ot 20 10 - - 30

Wcon 4 22 4 - - 30

Hfac 20 6 4 30

Ced 2 14 10 4 30

Prb - 2 14 14 30

Rfac 2 10 8 10 30

Top 18 8 4 30

We 12 14 4 30

Wdf 6 8 12 4 30

Ir 16 12 2 30

Total = f 32 236 134 48 450

fXi 160 944 402 96 1602 Organizational Mean (ARL) = Σ fXi450= 1602450 = 356

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 356 which is more than 3 (Indifferent level) showing union of ARL is

exerting efforts for exacting benefits for workers

Union of ARL claimed for exertion of efforts for securing all benefits for workers and

management confirmed it (see column 9 and 10 of appendix F-1)

113

Table 2 Responses of Workers of CDA (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris 40 14 16 70

Fbft 62 6 2 70

Jsec 48 18 4 70

Td 36 32 2 - 70

Linc 35 33 2 70

Ot 30 32 8 70

Wcon 30 28 12 70

Hfac 40 14 16 70

Ced 13 48 9 70

Prb 14 50 6 0 70

Rfac 58 12 70

Top 10 20 40 70

We 28 34 8 70

Wdf 28 28 14 70

Ir 54 10 6 70

Total = f 14 504 381 151 1050

fXi 70 2016 1143 302 3531 Organizational Mean (CDA) = Σ fXi1050 =35311050 = 336

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 336 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts for exacting benefits for workers

Union of CDA claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for time decrease leaves increase

recreation facilities and workersrsquo education (see column 9 and 10 of appendix F-2)

114

Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris - 26 22 22 - 70

Fbft 2 12 56 - 70

Jsec 7 40 13 10 - 70

Td - 40 23 7 - 70

Linc - 40 25 5 - 70

Ot 36 20 14 - 70

Wcon 50 10 10 - 70

Hfac 26 24 20 - 70

Ced 9 44 17 - 70

Prb 4 46 20 - 70

Rfac 47 23 70

Top 22 34 14 - 70

We 36 24 10 70

Wdf - 2 37 31 - 70

Ir - 49 10 11 - 70

Total = f 7 382 391 270 1050

fXi 35 1528 1173 540 3276 Organizational Mean (IESCO) = Σ fXi1050 = 32761050 = 312

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 312 which is more than 3 (Indifferent level) showing union of IESCO is

exerting efforts for exacting benefits for workers

Union of IESCO claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for fringe benefits leaves increase

workersrsquo education and reduction of officers workers salary difference (see column 9

and 10 of appendix F-3)

115

Table 4 Responses of Workers of KTM (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris - 10 4 21 35

Fbft - 17 17 1 35

Jsec - 15 10 10 35

Td - 13 13 9 35

Linc - 10 16 9 35

Ot - 12 15 8 35

Wcon - 30 5 - 35

Hfac 6 25 4 - 35

Ced 4 20 11 - 35

Prb - 17 10 8 35

Rfac - 16 10 9 35

Top 22 13 35

We 12 17 6 35

Wdf 2 7 26 35

Ir 20 12 3 35

Total = f 10 219 173 123 525

fXi 50 876 519 246 1691 Organizational Mean (KTM) = Σ fXi525= 1691525 = 322

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 322 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts for exacting benefits for workers

Union of KTM claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for wage rise time decrease leave

increase overtime payment recreation facilities training opportunities and reduction

of officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

116

Table 5 Responses of Workers of OGDCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris - 35 15 - - 50

Fbft 2 34 10 4 - 50

Jsec - 45 5 - - 50

Td - 40 10 - - 50

Linc - 40 10 - - 50

Ot - 22 16 12 - 50

Wcon 4 33 10 3 - 50

Hfac 17 28 5 - - 50

Ced - 8 36 06 - 50

Prb - 27 13 10 - 50

Rfac 18 14 14 04 - 50

Top 4 19 20 7 - 50

We 21 19 10 - 50

Wdf 5 26 14 5 - 50

Ir - 34 12 4 - 50

Total = f 50 426 209 65 750

fXi 250 1704 627 130 2711

Organizational Mean (OGDC) = Σ fXi750 = 2711750 = 361

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 361 which is more than 3 (Indifferent level) showing that union of

OGDC is exerting efforts for exacting benefits for workers

Union of OGDC claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-5)

117

Table 6 Responses of workers of PCP (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 37 4 9 50

Fbft 33 8 9 50

Jsec 4 40 4 2 50

Td 40 4 6 50

Linc 38 7 5 50

Ot 37 9 4 50

Wcon 39 6 5 50

Hfac 40 5 5 50

Ced 11 16 23 50

Prb 5 30 15 50

Rfac 30 20 50

Top 24 26 50

We 30 20 50

Wdf 5 37 8 50

Ir 20 21 9 50

Total = f 4 375 225 146 750

fXi 20 1500 675 292 2487 Organizational Mean (PCP) = Σ fXi750 = 2487750 = 332

Weighted Arithmetic Mean of Satisfaction Level of the responses of workers

for all the variables is 332 which is more than 3 (Indifferent level) showing union of

PCP is exerting efforts for exacting benefits for workers

Union of PCP claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities

recreation facilities training opportunities workersrsquo education and reduction of

officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

118

Table 7 Responses of workers of PTCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 28 18 24 - 70

Fbft 14 16 40 70

Jsec 2 39 15 14 - 70

Td 40 20 10 - 70

Linc 36 24 10 - 70

OT 10 38 22 - 70

Wcon 36 24 10 - 70

Hfac 44 16 10 - 70

Ced 11 32 27 - 70

Prb 4 44 22 - 70

Rfac 40 30 - 70

Top 16 40 14 - 70

We 19 39 12 70

Wdf 32 38 - 70

Ir 18 34 18 70

Total = f 2 315 432 301 1050

fXi 10 1260 1296 602 3168 Organizational Mean (PTCL) = Σ fXi1050 = 31681050 = 302

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 302 which is very marginally bigger than 3 (Indifferent level) showing

that union of PTCL is exerting efforts for exacting benefits for workers but the

situation is hardly satisfactory and union is approximately at tolerance level Thus

PTCL union has much to do for workers

Union of PTCL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities post

retirement benefits recreation facilities (see column 9 and 10 of appendix F-7)

119

Table 8 Responses of workers of PTV (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 6 26 14 4 50

Fbft - 36 12 2 50

Jsec 7 39 3 1 50

Td 37 10 3 50

Linc 38 9 3 50

Ot 41 6 3 50

Wcon 39 11 50

Hfac 37 5 8 50

Ced 13 20 17 50

Prb 21 24 5 50

Rfac 10 34 6 50

Top 16 24 10 50

We 33 8 9 50

Wdf 23 14 13 50

Ir 30 10 10 50

Total = f 13 439 204 94 750

fXi 65 1756 612 188 2621 Organizational Mean (PTV) = Σ fXi750 = 2621 750=350

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 350 which is more than 3 (Indifferent level) showing that union of PTV

is exerting efforts for exacting benefits for workers

Union of PTV claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for recreation facilities (see column 9

and 10 of appendix F-8)

120

Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 7 30 10 3 50

Fbft 5 30 12 3 50

Jsec 5 34 11 50

Td 34 16 50

Linc 32 18 50

Ot 3 21 23 3 50

Wcon 3 40 4 3 50

Hfac 4 34 10 2 50

Ced 6 22 22 50

Prb 37 8 5 50

Rfac 16 30 2 2 50

Top 10 34 6 50

We 15 25 10 50

Wdf - 17 28 5 50

Ir 25 14 11 50

Total = f 43 395 237 75 750

fXi 215 1580 711 150 2656 Organizational Mean (SNGPL) = Σ fXi750 = 2656750 = 354

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 354 which is more than 3 (Indifferent level) showing that union of

SNGPL is exerting efforts for exacting benefits for workers

Union of SNGPL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for time decrease and leaves increase

(see column 9 and 10 of appendix F-9)

121

Table 10 Responses of workers of ZTBL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables

Wris - 32 14 4 - 50

Fbft 28 14 8 - 50

Jsec 26 20 4 - - 50

Td 28 16 6 - 50

Linc 28 14 8 50

Ot 16 12 22 - 50

Wcon 32 14 4 - - 50

Hfac 1 38 4 7 - 50

Ced 22 22 6 - 50

Prb 2 18 30 - 50

Rfac 28 22 - 50

Top 26 20 4 - 50

We 28 18 4 50

Wdf 2 20 22 6 - 50

Ir 4 34 7 5 - 50

Total = f 65 336 217 132 750

fXi 325 1344 651 264 2584 Organizational Mean (ZTBL) = Σ fXi750 = 2584750= 345

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 345 which is more than 3 (Indifferent level) showing that union of ZTBL

is exerting efforts for exacting benefits for workers

Union of ZTBL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-10)

122

522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES

Organization wise arithmetic means of all the organizations on the basis of the

two variables pertaining to management have been calculated below in tables 11 to

table 20

Table 11 Responses of Management of ARL

Management Responses

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (ZTBL) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing that union of

ARL is exerting efforts in exhorting workers to work for the interest of employer

Therefore union is successful

123

Table 12 Responses of Management of CDA

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (CDA) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts in exhorting workers to work for the interest of employer

124

Table 13 Responses of Management of IESCO

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph FS 5

Total 9

Mean 92 = 45

Organizational Mean (IESCO) = Σ Xi2 = 92 = 45

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 45 which is more than 3 (Indifferent level) showing union of IESCO

is exerting efforts in exhorting workers to work for the interest of employer

125

Table 14 Responses of Management of KTM

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 84 = 400

Organizational Mean (KTM) = Σ Xi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts in exhorting workers to work for the interest of employer

126

Table 15 Responses of Management of OGDC

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 3 5

Organizational Mean (OGDC) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL

is exerting efforts in exhorting workers to work for the interest of employer

127

Table 16 Responses of Management of PCP

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PCP) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is

exerting efforts in exhorting workers to work for the interest of employer

128

Table 17 Responses of Management of PTCL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph ND 3

Total 6

Mean 62 = 30

Organizational Mean (PTCL) = Σ Xi2 = 62 = 30

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 3 which is equivalent to Indifferent level showing employer of PTCL

is at indifferent level and union is tolerable for employer Here again unionsrsquo

performance needs much improvement

129

Table 18 Responses of Management of PTV

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PTV) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PTV is

exerting efforts in exhorting workers to work for the interest of employer

130

Table 19 Responses of Management of SNGPL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (SNGPL) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL

is exerting efforts in exhorting workers to work for the interest of employer

131

Table 20 Responses of Management of ZTBL

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 82 = 400

Organizational Mean (ZTBL) = Σ fXi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is

exerting efforts in exhorting workers to work for the interest of employer

132

53 VARIABLE-WISE ANALYSIS

In this section performance of unions has been estimated by measuring

satisfaction level of respondents ie workers and employers in the lights of their

responses for every variable by applying arithmetic mean and Chi squire

Mean of satisfaction level of workers of all the sample for all 15 variables has

been calculated individually in tables from table 21 to table 35 and then combine mean

of satisfaction level of all variable has been calculated in lsquotable 36rsquo by adding these

individual variable means and dividing it on 15 which is total number of variable

In tables 21 to 35 totals of columns 3 to 7 have been multiplied by their

respective value (given in top row stubbed lsquoValuersquo) to obtain valued total and these

valued totals of all columns have been added and divided by lsquoNrsquo which is total of

respondents (total of sample) and equal to 525 the outcome is lsquovariable meanrsquo for

concerned variable This mean measures the satisfaction level of all the sampled

workers on the efforts of unions exerted for that single benefit

Chi square test has been applied on 15 variables in tables 37 to 51 on totals of

columns fetched from tables 21 to 35 respective variable at significance level of 005

and degree of freedom according to data of variable Calculated values of Chi square

have been compared with table value at 005 significance level and respective degree

of freedom In case calculated value is greater than table value the hypothesis for that

variable is to be rejected and alternative view is to be accepted

133

531 MEAN CALCULATION OF VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERSrsquo BENEFITS

Variables that are measuring unionsrsquo efforts for securing benefits for workers

are fifteen These have been analyzed by constructing tables and calculating their

arithmetic mean

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 21 Mean calculations-wage rise (Wris)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 20 8 - -

CDA 70 40 14 16

IESCO 70 - 26 22 22 -

KTM 35 - 10 4 21

OGDCL 50 - 35 15 - -

PCP 50 37 4 9

PTCL 70 28 18 24 -

PTV 50 6 26 14 4

SNGPL 50 7 30 10 3

ZTBL 50 - 32 14 4 -

Total (f) 525 15 284 123 103 -

fXi 75 1136 369 206 - 1786

Variable Mean = Σ fXi 525 =1786 525 = 340

134

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization (ten organizations) for Wage rise of workers

is 340 which is bigger than 3 (Indifferent Level) showing unions as a whole have

exerted effective efforts for rise in wages of worker

Efforts of unions for wage rise can be estimated from this fact that at time of

survey (December 2006) minimum wage was Rupees 4000 but 324952 workers

were earning wages between Rupees 5000 and 10000 and 4952 between 10000

and 20000 and 118 percent were getting wages even more than rupees 20000

(Appendix C-3) Rise in wages was 15 to 35 except of KTM (see Appendix C-1)

This is really an achievement at the part of labor unions proving their success

Out of 525 respondents 15 were very satisfied 284 satisfied 123 indifferent

and only 103 were unsatisfied (see Table 21 and Figure2)

Management of all the organizations Except KTM also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

So Hypothesis 1 that unions did not exert efforts for wage rise of workers is

rejected and alternate view is established

Figure-2 - Satisfaction Level of Workers on Wage Rise

Very Satisfied 15

3

Satisfied 284 54

Indifferent 123 23

un-Satisfied 103 20 Very Satisfied

SatisfiedIndifferentun-Satisfied

135

Hypothesis 2 (H2) Unions did not exert efforts for financial benefits like bonus of Workers

Table 22 Mean Calculations - Bonus (Financial Benefits) (Fbft)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 16 4 2 -

CDA 70 62 6 2

IESCO 70 2 12 56 -

KTM 35 - 17 17 1

OGDCL 50 2 34 10 4 -

PCP 50 33 8 9

PTC) 70 14 16 40

PTV 50 - 36 12 2

SNGPL 50 5 30 12 3

ZTBL 50 28 14 8 -

Total (f) 525 15 272 111 127

fXi 75 1088 333 254 1750

Variable Mean = Σ fXi 525 =1750 525 = 333

136

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Fringe Benefits (Bonus) of workers is

333 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for obtaining bonuses for worker So Hypothesis 2 that

unions did not exert efforts for financial benefits like bonus of workers is rejected and

alternate view is established

Except PCP workers of all other organizations are getting bonuses and in some

organizations bonuses are two or more ARL paid 5 and KTM has paid 4 bonuses in

previous charter (Appendix C-1) ARL KTM and OGDCL pay 5 percent of their

profit to workers and KTM besides this also makes payment to social security and 5

percent equivalent of workersrsquo salary to Employees Old Age Benefit department

(Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Out of 525 respondents 15 were very satisfied 272 satisfied 111 indifferent

and only 127 were unsatisfied (see Table 22 and Figure-3)

Management of all the organizations except IESCO also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

Figure-3 - Satisfaction Level of Workers on Financial Benefits

Very Satisfied 15

3

Satisfied 272 52Indifferent

111 21

un-Satisfied 127 24 Very Satisfied

SatisfiedIndifferentun-Satisfied

137

Hypothesis 3 (H3) Unions did not exert efforts for Job Security of workers

Table 23 Mean Calculations Job Security (J-sec)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 18 4 - -

CDA 70 48 18 4

IESCO 70 7 40 13 10 -

KTM 35 - 15 10 10

OGDCL 50 - 45 5 - -

PCP 50 4 40 4 2

PTC) 70 2 39 15 14 -

PTV 50 7 39 3 1

SNGPL 50 5 34 11

ZTBL 50 26 20 4 - -

Total (f) 525 59 338 87 41 0

fXi 295 1352 261 82 1990

Variable Mean = Σ fXi 525 =1990 525 = 379

138

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Job Security of workers is 379which is

bigger than 3 (Indifferent Level) showing unions as a whole have exerted effective

efforts for Job Security of worker

Out of 525 respondents 59 were very satisfied 338 satisfied 87 indifferent and

only 41 were unsatisfied (see Table 23 and Figure-4)

Employees of all the organizations under study are enjoying job security due to

unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts of

unions for job security only 41 workers were unsatisfied (Table23)

Management of all the organizations also confirmed that unions have been

exerting efforts for workers job security (see tables in appendices F-1 to F-10 column

management responses)

So hypothesis 3 that unions did not exert efforts for Job Security of workers is

rejected and alternative view is established

Figure-4 - Satisfaction Level of Workers on Job Security

Very Satisfied 59

11

Satisfied 338 64

Indifferent 87 17

un-Satisfied 41 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

139

Hypothesis 4 (H4) Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 24 Mean Calculations Time Reduction (Td)

Satisfaction Level No VS S IND US VUS Σ fXi

values (Xi) 5 4 3 2 1

Organization

ARL 30 16 14 - -

CDA 70 36 32 2 -

IESCO 70 - 40 23 7 -

KTM 35 - 13 13 9

OGDCL 50 - 40 10 - -

PCP 50 40 4 6

PTCL 70 40 20 10 -

PTV 50 37 10 3

SNGPL 50 34 16

ZTBL 50 28 16 6 -

Total (f) 525 - 324 158 43

fXi 1296 474 86 1856

Variable Mean = Σ fXi 525 = 1856525 = 354

140

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Reduction in daily duty hours or

resistance offered for increase of time duration of workers is 354 which is bigger

than 3 (Indifferent Level) showing that unions as a whole have exerted effective

efforts for timings of worker

Only one organization KTM has 48 working hours per week at the rate of 8

hours per day Two organizations ARL and PCP have 40 working hours per week and

other seven organizations have weekly working hours less than 40 (Appendix C-2)

This time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation Out of 525 respondents 324 were

satisfied 158 indifferent and only 43 were unsatisfied (see Table 24 and Figure-5)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except management of

CDA PTV and SNGPL (see tables in appendices F-1 to F-10 column management

responses)

So the hypothesis 4 that unions did not exert efforts for time decrease or

offered resistance against time increase of workers is rejected and alternative view is

established

Figure-5 - Satisfaction Level of Workers on Time Reduction

Very Satisfied 0

0

Satisfied 324 62

Indifferent 158 30

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

141

Hypothesis 5 (H5) Unions did not exert efforts for health facilities Table 25 Mean Calculations - Health Facilities (Hfac)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 6 4

CDA 70 40 14 16

IESCO 70 26 24 20 -

KTM 35 6 25 4 -

OGDCL 50 17 28 5 - -

PCP 50 40 5 5

PTCL 70 44 16 10 -

PTV 50 37 5 8

SNGPL 50 4 34 10 2

ZTBL 50 1 38 4 7 -

Total (f) 525 28 332 93 72 -

fXi 140 1328 279 144 1891

Variable Mean = Σ fXi 525 = 1891525 = 360

142

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Health Facilities of workers is 360

which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for Health Facilities of worker

All the organizations are providing medical treatment facilities to their workers

(Appendix C-2) and out of 525 responding workers 28 were very satisfied 332

workers were satisfied 93 indifferent and 72 were un-satisfied (Table-25 amp figure-6 )

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 5 that unions did not exert efforts for health facilities is

rejected and alternative view is established

Figure-6 - Satisfaction Level of Workers on Health Facilities

Very Satisfied 28

5

Satisfied 332 63

Indifferent 93 18

un-Satisfied 72 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

143

Hypothesis 6 (H6) Unions did not exert efforts for workersrsquo children education facility

Table 26 Mean calculations- Children Education (Ced)

Variable Mean = Σ fXi 525 = 1583525 = 302

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 14 10 4

CDA 70 13 48 9

IESCO 70 9 44 17 -

KTM 35 4 20 11 -

OGDCL 50 - 8 36 06 -

PCP 50 11 16 23

PTCL 70 11 32 27 -

PTV 50 13 20 17

SNGPL 50 6 22 22

ZTBL 50 22 22 6 -

Total (f) 525 6 127 261 131

fXi 30 508 783 262 1583

144

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Children Education Facilities for

workers is 302 which is very slightly bigger than 3 (Indifferent Level) showing that

unions as a whole have exerted efforts for Education Facilities for children of workers

The satisfied workers 133 (6+127) and unsatisfied workers 131 are almost

equal with 261 indifferent workers on this facility which shows that unions need to put

more efforts for this facility (Table-26 amp Figure -7)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

PCP (see tables in appendices F-1 to F-10 column management responses)

So the hypothesis 6 that unions did not exert efforts for workersrsquo children

education facility is rejected and alternate view is established

Figure-7 - Satisfaction Level of Workers on Children Education Facilities

Very Satisfied 6

1Satisfied

127 24

Indifferent261 50

Un-Satisfied 131 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

145

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 27 Mean Calculations - Over Time Payment (Ot)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 10 - -

CDA 70 30 32 8

IESCO 70 36 20 14 -

KTM 35 - 12 15 8

OGDCL 50 - 22 16 12 -

PCP 50 37 9 4

PTCL 70 10 38 22 -

PTV 50 41 6 3

SNGPL 50 3 21 23 3

ZTBL 50 16 12 22 -

Total (f) 525 3 245 181 96

fXi 15 980 543 192 1730

Variable Mean = = Σ fXi 525 1730525 = 330

146

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Over Time Payment of workers is 330

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for Over Time Payment to worker

On unionsrsquo efforts 3 workers were very satisfied 245 were satisfied and 96

workers un-satisfied while 181 workers were indifferent (Table-27 amp figure 8)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 8 that unions did not exert efforts for overtime payment for

over working is rejected and alternate view is established

Figure-8 - Satisfaction Level of Workers on Over Time Payment

Very Satisfied 3

1Satisfied 245 47

Indifferent 181 34

un-Satisfied 96 18

Very SatisfiedSatisfiedIndifferentun-Satisfied

147

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions Table 28 Mean Calculations - working conditions (Wcon) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 4 22 4 - -

CDA 70 30 28 12

IESCO 70 50 10 10 -

KTM 35 - 30 5 -

OGDCL 50 4 33 10 3 -

PCP 50 39 6 5

PTCL 70 36 24 10 -

PTV 50 39 11

SNGPL 50 3 40 4 3

ZTBL 50 32 14 4 - -

Total (f) 525 43 333 106 43

fXi 215 1332 318 86 1951

Variable Mean = Σ fXi 525 = 1951525 = 372

148

Analysis

The overall mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Working Conditions of workers is 372

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for arrangements of better working conditions for workers

On unionsrsquo efforts 43 workers were very satisfied 333 workers were satisfied

as compared to 43 un-satisfied workers while 106 were indifferent (Table-28 amp Figure

9) It means unions have really exerted efforts for working conditions

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 8 that the unions did not exert efforts for better working

conditions is rejected and alternate view is established

Figure-9 - Satisfaction Level of Workers on Working Conditions

Very Satisfied 43

8

Satisfied 333 64

Indifferent 106 20

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

149

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 29 Mean Calculations- leaves facility (Linc) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 24 6 - -

CDA 70 35 33 2

IESCO 70 - 40 25 5 -

KTM 35 - 10 16 9 -

OGDCL 50 40 10 - -

PCP 50 38 7 5

PTCL 70 36 24 10

PTV 50 38 9 3

SNGPL 50 32 18 -

ZTBL 50 28 14 8 -

Total (f) 525 0 321 162 42

fXi 1284 486 84 1854

Variable Mean = Σ fXi 525 = 1854525 = 353

150

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for increasing annual leaves of workers or

offering resistance against decrease of leaves is 353 which is bigger than 3

(Indifferent Level) showing that unions as a whole have exerted effective efforts for

increase of Leaves of worker

Annual paid leaves for seven organizations are 68 and for IESCO are 73 where

as only for two organizations are 40 This is a reasonable time for rest and enjoyment

On unionsrsquo efforts 321 workers were satisfied as compared to 42 un-satisfied workers

which shows that unions have really exerted efforts for exacting this facility (Table-

29 amp Figure 10)

Management of all the organizations also confirmed that unions have depicted

their intention to resist the decrease of leaves (see tables in appendices F-1 to F-10

column management responses)

So the hypothesis 9 that unions did not exert efforts for leaves increase or

resist against leaves decrease is rejected and alternate view is established

Figure-10 - Satisfaction Level of Workers on Leave Facilities

Very Satisfied 0

0

Satisfied 321 61

Indifferent 162 31

un-Satisfied 42 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

151

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 2 14 14 78

CDA 70 14 50 6 0 - 288

IESCO 70 - 4 46 20 - 194

KTM 35 - 17 10 8 - 114

OGDCL 50 - 27 13 10 - 167

PCP 50 - 5 30 15 - 140

PTCL 70 4 44 22 192

PTV 50 21 24 5 166

SNGPL 50 - 37 8 5 - 182

ZTBL 50 2 18 30 - 122

Total = (f) 525 14 169 213 129

fXi 70 676 639 258 0 1643

Variable Mean = Σ fXi 525 =1643 525 = 313

152

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Post Retirement Benefits (Like pension)

of workers is 313 which is greater than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for post retirement benefits of worker

The satisfied workers are 183 (14 + 169) but unsatisfied workers 129 are also

not less while 213 workers are indifferent which shows that unions need to put more

efforts for this facility (Table-30 amp Figure-11)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

However the hypothesis 10 that the unions did not exert efforts for

postretirement benefits like pension of workers is rejected and alternate view is

established

Figure-11 - Satisfaction Level of Workers on Post Retirement Benefits

Very Satisfied 14

3

Satisfied 169 32

Indifferent 213 40

un-Satisfied 129 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

153

Hypothesis 11 (H11) Unions did not exert efforts for arranging recreation

facilities

Table 31 Mean Calculations -Recreation facilities (Rfac) Satisfaction Level No VS S IND US VUS Σ fXi

Value (Xi) 5 4 3 2 1

Organization

ARL 30 2 10 8 10

CDA 70 58 12

IESCO 70 47 23 -

KTM 35 - 16 10 9

OGDCL 50 18 14 14 04 -

PCP 50 - - 30 20 -

PTCL 70 40 30

PTV 50 10 34 6

SNGPL 50 16 30 2 2 -

ZTBL 50 28 22 -

Total (f) 525 36 80 271 138 -

fXi 180 320 813 276 1589

Variable Mean = = Σ fXi 525 1589525 = 303

154

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Recreational Facilities of workers is

303Which is slightly greater than 3 (Indifferent Level) showing that unions as a

whole have some exerted efforts for Health Facilities of worker

The satisfied workers are 116 (36 + 80 ) but unsatisfied workers 138 while

271 workers are indifferent which shows that unions need to put more efforts for this

facility (Table-31 amp Figure 12) The mean being more than 3 is due to the fact that 36

workers were very satisfied which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except in CDA KTM

PCP and PTCL (see tables in appendices F-1 to F-10 column management responses)

However the hypothesis 11 that the unions did not exert efforts for arranging

recreation facilities is rejected and alternate view is established

Figure-12 - Satisfaction Level of Workers on Recreational Facilities

Very Satisfied 36

7

Satisfied 80 15

Indifferent 271 52

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

155

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 32 Mean Calculations - training opportunities (Top) Satisfaction Level No VS S IND US VUS Σ fXi Values (Xi) 5 4 3 2 1 Organization ARL 30 18 8 4 CDA 70 10 20 40 IESCO 70 22 34 14 - KTM 35 22 13 OGDCL 50 4 19 20 7 - PCP 50 - - 24 26 - PTCL 70 16 40 14 PTV 50 16 24 10 SNGPL 50 - 10 34 6 - ZTBL 50 26 20 4 - Total (f) 525 4 137 246 138 fXi 20 548 738 276 1582

Variable Mean = Σ fXi 525 = 1582525 = 301

156

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Training Opportunities of workers is 301

which is very marginally bigger than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for training opportunities of worker but need to exert

more efforts

The satisfied workers 141 (4 + 137) and unsatisfied workers 138 are almost

equal with 246 indifferent workers showing that unions need to put more efforts for

this facility (Table-32 amp figure 13) The mean being more than 3 is due to the fact that

246 workers were indifferent which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except KTM (see tables in

appendices F-1 to F-10 column management responses)

However the as hypothesis 12 that unions did not exert efforts for arranging

training opportunities for workers is rejected and alternate view is established

Figure-13 - Satisfaction Level of Workers on Training Opportunities

Very Satisfied 4

1 Satisfied 137 26

Indifferent 246 47

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

157

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers

wagessalary difference

Table 33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 6 8 12 4

CDA 70 28 28 14

IESCO 70 - 2 37 31 -

KTM 35 2 7 26

OGDCL 50 5 26 14 5 -

PCP 50 5 37 8

PTCL 70 32 38

PTV 50 23 14 13

SNGPL 50 - 17 28 5

ZTBL 50 2 20 22 6 -

Total (f) 525 13 131 231 150

fXi 65 524 693 300 1582

Variable Mean = Σ fXi 525 =1582 525 = 301

158

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for decreasing workers officers wage salary

gap is 301 which is very marginally greater than 3 (Indifferent Level) showing that

unions as a whole have exerted some efforts for decreasing gap of remunerations

between officers and worker

The satisfied workers 144 (13 + 131) are slightly less than 150 unsatisfied

workers with 231 workers indifferent (Table-33 amp Figure 14) The mean touching to

indifferent level is due to the fact that 13 responses are of very satisfied This demands

that unions need to put more efforts for exacting this facility

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

IESCO KTM and PCP (see tables in appendices F-1 to F-10 column management

responses)

However the hypothesis 13 that unions did not exert efforts for decreasing

workersofficers wagessalary difference is rejected and alternate view is established

Figure-14 - Satisfaction Level of Workers on Decreasin Wage Difference

Very Satisfied 13

2

Satisfied 131 25

Indifferent 231 44

un-Satisfied 150 29

Very SatisfiedSatisfiedIndifferentun-Satisfied

159

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 34 Mean calculations - informing about rights (Ir) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

(ARL) 30 16 12 2

(CDA) 70 54 10 6

(IESCO) 70 49 10 11

KTM 35 20 12 3

(OGDCL) 50 34 12 4

(PCP) 50 20 21 9

(PTCL) 70 18 34 18

PTV 50 30 10 10

(SNGPL) 50 25 14 11

(ZTBL) 50 4 34 7 5

Total (f) 525 4 300 142 79

fXi 20 1200 426 158 1804

Variable Mean = Σ fXi 525 =1804525 = 344

160

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations giving awareness to workers for their rights

is 344 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted efforts for informing worker about their rights as worker

On unionsrsquo efforts 304 (4 + 300) workers were satisfied as compared to 79 un-

satisfied workers which shows that unions have really exerted efforts for exacting this

facility (Table-34 amp Figure 15)

So the hypothesis 14 that unions did not exert efforts for informing workers

about their rights is rejected and alternate view is established

Figure-15 - Satisfaction Level of Workers on Informing About Rights

Very Satisfied 4

1

Satisfied 300 57

Indifferent 142 27

un-Satisfied 79 15

Very SatisfiedSatisfiedIndifferentun-Satisfied

161

Hypothesis 15 (H15) Unions did not exert efforts for workersrsquo education Table 35 Mean calculations - workersrsquo education (We)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 12 14 4

CDA 70 28 34 8

IESCO 70 - 36 24 10 -

KTM 35 12 17 6

OGDCL 50 - 21 19 10 -

PCP 50 - 30 20 -

PTCL 70 19 39 12

PTV 50 33 8 9

SNGPL 50 15 25 10

ZTBL 50 28 18 4

Total (f) 525 234 218 73

fXi 936 654 146 1736

Variable Mean = Σ fXi 525 = 1736525 = 331

162

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for workersrsquo education is 331 which is

bigger than 3 (Indifferent Level) showing that unions as a whole have exerted efforts

for workersrsquo education facilities

On unionsrsquo efforts 234 workers were satisfied as compared to 73 un-satisfied

workers with 218 indifferent responses which shows that unions have really exerted

efforts for exacting this facility (Table-35 amp Figure-16) though there is need of more

efforts

Management of all the organizations also confirmed that unions have been

requesting for making arrangements for workers education (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 15 that unions did not exert efforts for workers education

facilities is rejected and alternate view is established

Figure-16 - Satisfaction Level of Workers on Workers Education

Very Satisfied 0

0Satisfied 234 44

Indifferent 218 42

Un-Satisfied 73 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

163

5311 Combined Mean of All Workers Variables = (Sw)

By using means of the individual variables calculated in tables 21 to 41

Combine Mean has been calculated by arranging this data in Table 42 and using the

Equation

Table 36 Summary of means of workers variables and calculation of combined mean

Variables (to measurement of unionrsquos efforts for workers)

Means of Satisfaction Level of Workers ( i)

Wris 340

Fbft 333

Jsec 379

Td 354

Linc 353

Ot 330

Wcon 372

Hfac 360

Ced 302

Prb 313

Rfac 303

Top 301

We 331

Wdf 301

Ir 344

Total = Σ i 5016

Combined Mean (Sw) = (Workers Satisfaction) 50615 = 334

164

Data from Tables 21 to 35

By putting values of the total second column in the equation

Combine Mean = Σ i N

SW = (Wris + Fbft +Jsec + Td + Hfac + Ced + Ot +Wcon +

+ Linc + Prb + Rfac + Top + Wdf + Ir + We)15

Sw = 501615 = 334 (approximately)

As the Combine Mean is 334 which is greater than 3 the lsquoindifferent levelrsquo so

it is accepted that workers are satisfied with the unionsrsquo efforts and unions are

successful in securing benefits for workers

165

Figure 17a Diagrammatic Presentation of Means of Workers Variables (Bar

Diagram)

(Height of bars indicates mean of variable)

0

1

2

3

4

5

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

Figure 17b Diagrammatic Presentation of Means of Workers Variables (Line Graph)

012345

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

166

532 CHI SQUARE TEST APLICATION

For testing the correctness of Hypotheses H1 to H15 Chi square has also been

applied in tables 37 to 51 on the data of respective variable Expected values (fe) have

been subtracted from (fo) observed values and squared and then divided by expected

values added to each other to obtain calculated value of chi square Then calculated

value is compared with table value If it is greater than table value then it is significant

so hypothesis of respective variable is to be rejected and opposite view is to be

established Observed values for chi square application have been fetched from row

stubbed lsquoTotal (f)rsquo in tables 21 to 35

167

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 37 Chi square calculations Wage rise (Wris)

Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-( χ2)

(fo) 15 284 123 103 - 525

(fe) 13125 13125 13125 13125 - 525

(fo-fe)2 131514 2333256 6806 79806 -

χ2cal =

(fo-fe)2 fe 10296 17777 055 608 28686 28686

(Figures used in this table fetched from row stubbed Total (f) in table 21)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 28686 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

1 that unions did not exert efforts for wage rise of workers is rejected and the

alternate view that unions have exerted efforts for wage rise of workers is established

168

Hypothesis 2 (H2) Unions did not exert efforts for fringe benefits like bonus of workers Table 38 Chi square calculations - Bonus (financial benefits) (f-bft)

Satisfaction Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 15 272 111 127 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1339781 1981056 41006 18062

χ2cal =

(fo-fe)2 fe 10296 15093 312 013 25714 25714

(Figures used in this table fetched from row stubbed Total in table 22)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 25714 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis2 is

rejected and the alternate view that unions did exert efforts for exacting fringe

benefits like bonuses for the workers is established

169

Hypothesis 3(H3) Unions did not exert efforts for Job Security of workers

Table 39 Chi square calculations ndash Job security (Jsec)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 59 338 87 41 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 522006 4274556 195806 814506

χ2cal =

(fo-e)2 fe 3977 32630 1491 6214 44312 44312

(Figures used in this table fetched from row stubbed Total in table 23)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 44312 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis3 that unions did not exert efforts for job security of the workers is reject

and the alternate view that unions did exert efforts for job security of the workers is

established

170

Hypothesis 4 Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 40 Chi square calculation - Time reduction (Td) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) - 324 158 43 - 525

(fe) 175 175 175 525

(fo-fe)2 22201 289 17424

χ2cal =

(fo-fe)2 fe

12686 165 9956 22807 22807

(Figures used in this table fetched from row stubbed Total in table 24)

Significant df = 2 χ2tab at 005 = 599

The calculated value of Chi Square test 22807 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

4 is rejected and the alternate view that unions did exert efforts for decreasing

working hours of the workers is established

171

Hypothesis 5 (H5) Unions did not exert efforts for health facilities

Table 41 Chi square calculations - Health facilities (Hfac)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 28 332 93 72 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1066056 4030056 146306 351056

χ2cal =

(fo-fe)2 fe 8122 30705 1114 2674 42615 42615

(Figures used in this table fetched from row stubbed Total in table 25)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 42615 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

5 that unions did not exert efforts for exacting health facilities for the workers is

rejected and the alternate view is established

172

Hypothesis 6 (H) Unions did not exert efforts for workersrsquo children education facility

Table 42 Chi square calculations - Children education (Ced)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 6 127 261 131 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1568756 18062 1683506 0625

χ2cal =

(fo-fe)2 fe 11952 137 12826 0004 24791 24791

(Figures used in this table fetched from row stubbed Total in table 26)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 24791 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis 6 is

rejected and the alternate view that unions did exert efforts for exacting children

education facilities for the workers is established

173

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 43 Chi square calculations - Over time payment (Ot) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 3 245 181 96 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1644806 1293906 247506 124256

χ2cal =

(fo-fe)2 fe 12531 9858 1885 946 2522 2522

(Figures used in this table fetched from row stubbed Total in table 27)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 2522 is greater than table value of Chi

square 782 at 005 significance level and 3 degree of freedom so the Hypothesis 7

that unions did not exert efforts for overtime payment for over working is rejected and

alternate view is established

174

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions

Table 44 Chi square calculations - working conditions (Wcon)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 43 333 106 43 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 778806 4070306 63756 778806

χ2cal =

(fo-fe)2 fe 5933 31011 485 5933 43362 43362

(Figures used in this table fetched from row stubbed Total in table 28)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi square test 43362 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

8 that unions did not exert efforts for better working conditions is rejected and

alternate view is established

175

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 45 Chi square calculations - Leaves facility (Linc) Satisfaction

Level VS S IND US VUS Total Chi Sq-χ2

(fo) 321 162 42 525

(fe) 175 175 175 525

(Fo-fe)2 21316 169 17689

χ2cal =

(fo-fe)2 fe

12180 096 18108 22384 22384

(Figures used in this table fetched from row stubbed Total in table 32)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 22384 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

9 that unions did not exert efforts for leaves increase or resist against leaves decrease

is rejected and alternate view is established

176

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 46 Chi square calculations - post retirement benefits facility (Prb)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 14 169 213 129 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1374756 142506 668306 506

χ2cal =

(fo-fe)2 fe 10474 1085 5091 003 16653 16653

(Figures used in this table fetched from row stubbed Total in table 33)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 16653 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis10 that the unions did not exert efforts for postretirement benefits like

pension of workers is rejected and alternate view is established

177

Hypothesis 11(H11) Unions did not exert efforts for arranging recreation facilities Table 47 Chi square calculations - Recreation facilities (Rfac) Satisfaction

Level VS S IND US VUS TOTAL Chi Sq-χ2

(fo) 36 80 271 138 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 907256 262656 1953006 4556

χ2cal =

(fo-fe)2 fe 6912 2001 1488 0347 23827 8663

(Figures used in this table fetched from row stubbed Total in table 34)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 23827 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

11 that the unions did not exert efforts for arranging recreation facilities is rejected

and alternate view is established

178

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 48 Chi square calculations - Training facilities (Top) Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-

χ2

fo 4 137 246 138 525

fe 13125 13125 13125 13125 525

(fo-fe)2 161925 33062 1316756 4556

χ2cal =

(fo-fe)2 fe 12337 251 10032 347 22428 22428

(Figures used in this table fetched from row stubbed Total in table 35)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 22428 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

12 that unions did not exert efforts for arranging training opportunities for workers is

rejected and alternate view is established

179

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers wagessalary difference Table 49 Chi square calculationsndashDecreasing workers officers wage salary gap (Wdf)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 13 131 231 150 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1398306 0625 995006 35156

χ2cal =

(fo-fe)2 fe 10653 0004 7581 267 18501 18501

(Figures used in this table fetched from row stubbed Total in table 36)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 18501 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

13 that unions did not exert efforts for decreasing workersofficers wagessalary

difference is rejected and alternate view is established

180

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 50 Chi square calculations - Informing about rights (Ir)

Satisfaction

Level

VS S IND US VUS TOTAL Chi Sq- χ2

(fo) 4 300 142 79 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1619256 2847656 11556 273006

χ2cal =

(fo-fe)2 fe 12337 21696 088 2080 36201 36201

(Figures used in this table fetched from row stubbed Total in table 37)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 36201 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

14 that unions did not exert efforts for informing workers about their rights is rejected

and alternate view is established

181

Hypothesis 15 (H15) Unions did not exert efforts for arranging education facilities for workers

Table 51 Chi square calculations - workersrsquo education (We)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 234 218 73 525

(fe) 175 175 175 525

(Fo-fe)2 3481 1849 10404

χ2cal =

(fo-fe)2 fe

1989 1056 5945 899 899

(Figures used in this table fetched from row stubbed Total in table 38)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 8989 is greater than table value of Chi

square 599 at 005 significance level and 2 degree of freedom so the Hypothesis 15

that unions did not exert efforts for arranging education facilities for workers is

rejected and alternate view that the unions exerted efforts for arranging education

facilities for workers is established

182

533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS

Efforts of unions for benefits and interest of employers have been measured by

Two variables These variables are Productivity or Efficiency increase (Pin)

Enhancement of workplace harmony (Wph) Three tables (table 52 to 54) have been

constructed In table 52 and 53 Means of individual variables are calculated and in

third table combine mean is calculated

First column contains the name of organizations column two contains

response of employersrsquo representative on the variable in the form of satisfaction level

and column three contains the value of the response In the last row all these values of

third columns are added and divided by number of respondents ie 10 to calculate the

variable mean If mean is equal to 3 then aggregately all the respondents are

indifferent and if variables mean is greater than indifferent level ie 3 then employers

are satisfied on unionsrsquo efforts and unions are successful to the extent of this variable

If mean of variable is less then 3 then unions are failed to the extent of this variable

Combined mean of two variables has been calculated in third table 54

Combine mean more than 3 shows satisfaction of management with unionsrsquo

performance and value of combine mean less than 3 indicates that unionsrsquo have not

exerted efforts for employers benefits so unions are not beneficial and value of

combine mean equal to 3 shows that employers is indifferent and unionsrsquo presence is

neither beneficial nor harmful

183

Hypothesis 16 (H16) Unions exerted no efforts for motivating workers to increase productivityefficiency

Table 52 Calculation of mean of management responses for unionsrsquo

efforts for productivity efficiency increase) (Pin)

Organization Name Management Responses

Value of Responses (Xi)

ARL IND 3

CDA IND 3

IESCO S 4

KTM S 4

OGDCL IND 3

PCP IND 3

PTCL IND 3

PTV IND 3

SNGPL IND 3

ZTBL S 4

Total 33

Variable Mean 3210 = 33

Variable Mean = Σ Xi N = 3210 = 33

184

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for increase of productivity or efficiency (by working in better way

with minimum loss and of good quality in minimum possible time) is 33 which is

slightly more than 3 (indifferent level) indicating that unions are exerting slight

efforts

Therefore the hypothesis 16 that unions exerted no efforts for motivating

workers to increase productivity is rejected and alternative view unions exerted efforts

for motivating workers to increase productivity is established

On viewing individually employers of only three organizations are satisfied

and of seven organizations are indifferent So these unions need to put more efforts in

motivating workers for increasing productivity efficiency

Figure-18 - Satisfaction Level of Employers on ProductivityEfficienc Increase

Indifferent 7 70

Satisfied 330

un-Satisfied 0 0

Very Satisfied 0

0Very SatisfiedSatisfiedIndifferentun-Satisfied

185

Hypothesis 17 Unions exerted no efforts for workplace harmony Table 53 Calculation of mean of management responses for workplace harmony

(Wph) Organization Name

Management Response

Values of Responses (Xi)

ARL S 4

CDA S 4

IESCO FS 5

KTM S 4

OGDCL S 4

PCP S 4

PTCL IND 3

PTV S 4

SNGPL S 4

ZTBL S 4

Total 40

Variable Mean = Σ Xi N = 4010 = 4

186

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for creating harmony at workplace is 4 which is more than 3

(indifferent level) Therefore the hypothesis 17 that unions exerted no efforts for

workplace peace and harmony is rejected and alternative view unions exerted efforts

for workplace peace and harmony is established

Viewing individually employer of one organization ie IESCO is fully

satisfied and of eight organizations are satisfied Management of only one

organization ie PTCL is indifferent So union of PTCL needs to put more efforts in

creating peace and harmony at workplace Otherwise over all performance of unions is

satisfactory

Figure-19 - Satisfaction Level of Employers on Work Place Harmony

Satisfied 8 80

Indifferent 1 10

un-Satisfied 0 0

Very Satisfied 1

10

Very SatisfiedSatisfiedIndifferentun-Satisfied

187

Table 54 Calculation of Combined Mean of Management Responses (Se)

Variables (for measurement of

unionsrsquo efforts for Employers)

Means of Satisfaction Level of

Employer ( i)

Organization

Pin 33

Wph 4

Total of Means 73

(Data from calculations of tables 52 amp 53

By putting the values of means of columns in the equation

Combine Mean = Σ i N = Se = (Pin + Wph)2

Se = (33 + 40)2 = 732

Se = 732 = 365

In this analysis PTCL management has lowest level of satisfaction on unionsrsquo

role because union recently called an unsuccessful strike lasting for 13 days against

the government of Pakistanrsquos decision of privatization of the company Performance

of unions of other organizations is satisfied with mean greater than indifferent level

ie 3

As the combined mean of all the variable measuring unions efforts for

developing human resources for the benefit of employer is 365 that is greater than 3

the indifferent level so it is established that unions are working for interest of

employers and they are satisfied with them and unions are successful in satisfying

employers

188

Figure 20a Diagrammatic Presentation of Means of Employers Variables

(Bar Diagram)

012345

Pin Wph Se

(Height of bars indicates mean of variable)

Figure20b Diagrammatic Presentation of Means of Employers Variables

(Line Graph)

0

1

2

3

4

5

Pin Wph Se

189

No Success

Partial Success

Partial Success

Success S e = 365 Sw = 334

Figure 4 Diagrammatic Presentation of success of unions (Success Matrix)

5 1 5 2 5 3 5 4 Sw = 5 Se = 5

Sw = 5 Se = 1

Sw = 4 Se = 1

Sw = 3 Se = 1 Tolerable

Sw = 2 Se = 1

Sw = 1 Se = 1

11 12 13 14 Sw = 1 Se = 5 In the success matrix of diagram 4 satisfaction of workers is represented vertically

and satisfaction of employers is represented horizontally The dark grey portion of the

matrix shows no success or failure zone In this cage both Sw and Se are less than 3

(these are 11 21 31 22 32 or 12 13 ) Two light grey portions are areas of partial

success The upper light grey cage where Sw is greater than 3 showing workers are

satisfied but Se is less than 3 showing employers are unsatisfied While the Lower

light grey portion where Se is greater than 3 showing employers are satisfied but Sw is

less than 3 showing workers are unsatisfied also indicates partial success Joining

point of all four cages is tolerable point where both Sw and Se are 3 White cage

where both Sw and Se are more than 3 is success zone Values of both Sw (334) and

Se (365) are lying in success cage

190

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED WORKERS

To assess the unions role in securing the benefits for workers comparison of

facilities availed by permanent workers and temporary workers working in the same

organization has been made It is to determine whether facilities availed by unions

members are really due to unionsrsquo efforts or just because of government blessings For

this comparison of facilities ie Wage rise Job Security Daily working hours

Working conditions Facilities for children education Health care or medical treatment

facilities Fringe benefits like bonus Other of financial benefits and Yearly paid leaves

for both categories of workers has been made in the tables 55 and 56 Table 55 is for

facilities availed by Temporary workers and table 56 is for facilities by permanent

workers

Table 55 Facilities of temporary workers (Not Union Members)

Org Name

Wris Jsec Weekly Hours

Wcon Child education

Health facilities

Fringebft Bonus

Misc-All

Yearly Leaves

ARL Little No 46 Right No No No No 32

CDA Little No 39 Right No Yes Yes Yes 48

IESCO Little No 375 Right No No No No 22

KTM Little No 48 Right No Yes No No 18

OGDCL Little No 385 Right No Yes Yes No 40

PCP - - - - - - - - -

PTCL Little No 41 Right No No No No 36

PTV Little No 365 Right No Yes Yes No 21

SNGPL Little No 39 Right No No No No No

ZTBL Little No 39 Right No No No No No

No temporary worker in the organization

191

Table 56 Facilities of Permanent Workers (Union Members)

Org Name

Wris

Jsec Weekly Hours

Wcon Child educati

on

Health facilities

Fringebft

Bonus

Misc-All

Yearly Leaves

ARL 18 Yes 40 Right Little Yes 4+ Yes 29-40

CDA 20 Yes 39 Right Little Yes 2 Yes 68

IESCO 15 Yes 375 Right Little Yes No Yes 73

KTM - Yes 48 Right Little Yes 1 Yes 40

OGDCL 20 Yes 385 Right Little Yes 2+ Yes 68

PCP 15 Yes 40 Right Little Yes No Yes 68

PTCL 35 Yes 41 Right Little Yes 1 Yes 68

PTV 25 Yes 365 Right Little Yes 1 Yes 68

SNGPL 15 Yes 39 Right Little Yes 2 Yes 68

ZTBL 15 Yes 39 Right Little Yes 2 Yes 68

Wage Rise Permanent unionized workers are availing increase in wages in every

charter of demand that is from 15 to 35 percent whereas temporary non unionized

workers receive very little wage rise Wage rise sometimes received by permanent

workers announced by government in annual budget is besides this Where as

temporary workers are also deprived from this blessing as mater of right

Job Security Temporary workers do not have job security while permanent workers

have full job security and when 750 staff members ZTBL were forcefully retired in

December 2005 their union went on strike which lasted for 33 days and management

had to reinstate them

Daily Working Hours Working hours are same for both categories of workers as

usually time is fixed by government and not demanded in charter of demand

192

Working Conditions Working conditions are same for both categories of workers

because both work in the same premises

Children Education Facilities Temporary workers have no employerrsquos provided

facility at all for children education whereas permanent workers are having it though

condition for them is not very satisfactory

Health Facilities All the permanent workers are enjoying health facilities usually

for self and for family but temporary workers in four organizations avail it for self

only

Financial Benefits Permanent workers of 8 organizations are enjoying bonus

facilities whereas temporary workers only in three organizations are enjoying it and

workers commented that this is also because of unions efforts

Miscellaneous Allowances Permanent workers of all the organizations are enjoying

any of small financial allowance or facility but temporary workers of only one

organization CDA are enjoying it

Yearly Paid Leaves Permanent workers of all the organizations are enjoying yearly

leaves facility much more than their temporary colleagues In majority of

organizations leaves facilities are 68 (20 casual leaves and 48 privileged earn leaves)

Privilege leaves are encashable at the time of retirement Temporary workers in some

organizations have no leave facility and if they go on leave it is treated as with out

pay As in SNGPL and ZTBL and situation in other organizations is also poor

It is revealed from comparison of both the tables that these facilities are

enjoyed by majority of unionized workers while non-unionized workers are not

availing these facilities if these facilities are enjoyed by non-unionized workers in any

organization beneficiaries admitted that this is because of unionsrsquo efforts

193

56 WORKERS RESPONSES FOR QUESTIONS ABOUT ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS STATUS AS COMPARED TO PAST

These all points have been assessed by asking questions given in the table 57

and calculating percentage of the responses

Table 57 Essentiality inter union relations and unions status as compared to past

QNO18 Is union Essential in your organization

QNO 19 Are inter union relations good in your organization

QNO 20 Are unions of today weaker than unions in the past

Number of Number of

Responses

Number of

Responses

Number of

Responses

Org Name Res Unions in Org

Yes No Yes No Yes No

ARL 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

AGE 100 96 4 14 86 81 19

194

Ninety six percent workers are favoring the need of unions for workers in the

organizations and commented that unions provide job security and exert efforts for

financial benefits and also provide courage and lessens the fear of employers

However they stressed on the need of exertion of more efforts by unions for exacting

benefits for workers Few workers also groused for unionsrsquo partiality and inter union

rivalry Only 4 percent replied that unionsrsquo existence or non-existence makes no

benefit or harm to the workers

Eighty six percent workers replied that unions remain in conflict with each

other where unions in the organization are more than one This inter union rivalry

weakened their power and damaged their efforts for securing benefits for workers

Eighty one percent workers commented that unions of present day are

comparatively weaker than unions of a decade before and during interview

commented that unions in the democratic regime work well while in non-democratic

regime they become weak and less effective

CHAPTER 6

DISCUSSION CONCLUSION AND RECOMMENDATIONS

61 DISCUSSION

In the light of analysis of data made in chapter four the role of labor unions in

working for benefits of workers and employers is discussed here for arriving at a

conclusion This role is discussed in two ways ie organization-wise performance of

every union and variable-wise collective performance of all unions

611 Organization-Wise Performance of Unions

Analysis of unionsrsquo performance in context of efforts for securing benefits for

workers and protecting their interest has been made in tables 1 to 10 and of unionsrsquo

performance in context of efforts for protecting interest of employer has been made in

tables 11 to 20 Employerrsquos endorsement on unionsrsquo performance is revealed in

columns of employer responses by Y or N in tables in appendices F-1 to F-10

Performance of the unions is discussed below in the light of data analysis of

previous chapter

6111 ARL Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level organizational mean 356 more than 3 It means

majority of workers are satisfied and union is successful Employer has also confirmed

their efforts

In employerrsquos context the performance of union is satisfactory for establishing

work place peace and harmony but at indifferent level in productivity or performance

increase However as a whole performance of ARL union is satisfactory with 35 value

196

of mean of satisfaction level of all the variables of employer Majority of workers

confirmed exertion of unionrsquos efforts for employer Its means union is successful

6112 CDA Union

In workers context the performance of union is satisfactory with satisfaction

level mean 336 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for Time Decrease

Leave increase Recreation facilities and workers education facilities

In employerrsquos context the performance of union is satisfactory for establishing

work place harmony while at indifferent level in Productivity or performance increase

but as a whole performance of CDA union is satisfactory with 35 value of mean of

satisfaction level of all the employerrsquos variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

6113 IESCO Union

In workers context the performance of union is satisfactory with satisfaction

level mean 312 more than 3 As the score of union is hardly above the indifferent

level and union needs to put more efforts Employer has also confirmed their efforts

except for financial benefits workersrsquo officersrsquo wage difference leave increase and

Workersrsquo education

In employerrsquos context the performance of union is satisfactory for

improvement of Efficiency of workers and establishing work place harmony as a

whole performance of IESCO union is satisfactory with 450 value of mean of

satisfaction level of all the variables Majority of workers confirmed exertion of

unionrsquos efforts for employer It means employer is satisfied and union is successful

6114 KTM Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level weighted mean 322 more than 3 Employer has

197

also confirmed their efforts except for wage rise workers officers wage difference

time decrease leave increase overtime payment recreation facilities and training

opportunities Wages in textile sector are fixed by Wage Board where union union has

no representation so wages are not fixed properly Unionrsquos efforts in social services

health facilities were acknowledged by workers

In employerrsquos context the performance of union is satisfactory for every

variable with 400 value of mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6115 OGDC Union

In workers context the performance of union is satisfactory with satisfaction

level weighted mean 361 more than 3 It means majority of workers are satisfied and

union is successful Employer has also confirmed their efforts

In employersrsquo context the performance of union is satisfactory as a whole with

350 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

6116 PCP Union

In workers context the performance of union is satisfactory with satisfaction

level mean 332 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for workers officers wage

difference education of workers children recreation facilities training opportunities

and workersrsquo education

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

198

6117 PTCL Union

In workers context the performance of union in exerting efforts for securing

benefits for workers is hardly satisfactory with satisfaction level mean 302 which is

negligibly more than 3 It means satisfactory and unsatisfactory workers are almost

equal and union is marginally successful and needs improvement in efforts Employer

has confirmed their efforts except for children education post retirement benefits and

recreation facilities

In employerrsquos context the performance of union is 3 only equivalent to

indifference level as value of weighted mean of satisfaction level of all the variables

A marginal majority of workers confirmed exertion of unionrsquos efforts for employer It

means employer is indifference with unionrsquos performance and PTCL union needs

much improvement in this area

6118 PTV Union

In workers context the performance of union is satisfactory with satisfaction

level mean 350 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for recreation facilities

In employerrsquos context the performance of union is satisfactory as a whole with

350 value of weighted mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6119 SNGPL Union

In workers context the performance of union for securing benefits for workers

is satisfactory with satisfaction level mean 354 more than 3 It means majority of

workers are satisfied and union is successful Employer has also confirmed their

efforts except for time decrease and leaves increase

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

199

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

61110 ZTBL Union

In workers context the performance of union is satisfactory with satisfaction

level mean 345 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts

In employerrsquos context the performance of union is satisfactory for all the

variables and as a whole performance of ZTBL union is satisfactory with 400 value of

weighted mean of satisfaction level of all the variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

612 Variable-Wise Performance of Unions

How unions have been exerting efforts for workers benefits has been enquired

from workers and responses of workers analyzed by obtaining their weighted

lsquoarithmetic meanrsquo in tables 21 to 35 and by applying lsquochi squarersquo in tables 37 to 51

Because one point of the lsquoExisting Problemrsquo was that unionsrsquo membership is declining

and it was assumed that this might be because unions are not exerting efforts for

securing benefits or protecting interest of workers

Similarly how unions have been exerting efforts for employerrsquos interest have

been enquired from employers and analyzed their responses by obtaining their

arithmetic mean in tables 52 and 53 Because other point of the lsquoExisting Problemrsquo

was that unions only talk about workers rights and ignore their obligations are

responsible for low productivity and it was assumed that it might be because unions

are not exerting efforts for exhorting workers for taking care of employersrsquo interest

200

6121 Workers relating variables

Wage Rise Over all sample mean of the satisfaction level of workersrsquo responses is

340 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for wage rise

Efforts of unions for wage rise can be estimated from this fact that at time of survey

(December 2006) minimum wage was Rupees 4000 but more than 324952

workers were earning wages between Rupees 5000 and 10000 and more than 4952

between 10000 and 20000 and 118 percent were getting wages even more than rupees

20000 (Appendix C-3) Rise in wages was 15 to 35 except of KTM (see

Appendix C-1) This is really an achievement at the part of labor unions

Fringe Benefits Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 333 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

securing fringe benefits of workers Except PCP workers of all other organizations are

getting bonuses and in some organizations bonuses are two or more ARL paid 5 and

KTM has paid 4 bonuses in previous charter (Appendix C-1) ARL KTM and

OGDCL pay 5 percent of their profit to workers and KTM besides this also make

payment to social security and 5 percent of workers salary to Employees Old Age

Benefit department (Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Job Security Over all sample Mean of the Satisfaction Level of workersrsquo responses is

379 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for Job Security

of workers Employees of all the organizations under study are enjoying job security

due to unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts

of unions for job security only 41 workers were unsatisfied (Table23)

Time Reduction Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 354 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

reduction in daily duty hours or resisting the increase of working hours by employer

201

Only one organization KTM has 48 working hours per week at the rate of 8 hours per

day Two organizations ARL and PCP have 40 working hours per week and other

seven organizations have weekly working hours less than 40 (Appendix C-2) This

time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation On unionsrsquo efforts for time decrease

324 respondents expressed satisfaction and only 43 workers expresses un-satisfaction

(Table-24)

Health Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 360 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

Health facilities for workers All the organizations are providing medical treatment

facilities to their workers (Appendix C-2) and 360 workers expressed their satisfaction

as compared to 72 un-satisfied workers (Table-25)

Children Education Over all sample Mean of the Satisfaction Level of workersrsquo

response is 302 which is minutely more than indifferent level (ie 3) Chi square test

for this is significant resulting that unions as a whole have been exerting efforts for

children education facilities for workers but performance of unions of five

organizations is not satisfactory and they need to improve their efforts in this regard

The satisfied workers 133 and unsatisfied workers 131 are almost equal with 261

indifferent workers on this facility which shows that unions need to put more efforts

for this facility (Table-26)

Over Time Payment Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 330 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

payment of overtime if workers work more than duty hours On unionsrsquo efforts 248

were satisfied as compared to 96 workers while 181 workers were indifferent (Table-

27)

Working Conditions Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 372 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for better

202

working conditions On unionsrsquo efforts 376 workers were satisfied as compared to 43

un-satisfied workers (Table-28) It means unions have really exerted efforts for

working conditions

Leave Facility Over all sample Mean of the Satisfaction Level of workersrsquo responses

is 353 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for increasing

yearly leaves or resisting against the decrease of yearly leaves of workers Annual paid

leaves for seven organizations are 68 and for IESCO are 73 where as only for two

organizations are 40 This is a reasonable time for rest and enjoyment On unionsrsquo

efforts 321 workers were satisfied as compared to 42 un-satisfied workers which

shows that unions have really exerted efforts for exacting this facility (Table-29)

Post Retirement benefits (Pension) Over all sample Mean of the Satisfaction Level

of workersrsquo responses is 313 which is more than indifferent level (ie 3) Chi square

test for this is also significant resulting that unions as a whole have been exerting

efforts for Post retirement benefits for workers The Mean of satisfaction level of

workers for unionsrsquo efforts for this variable is hardly more than 3 so unions need to

improve their efforts in this regard The satisfied workers are 183 but unsatisfied

workers 129 are also not less while 213 workers are indifferent which shows that

unions need to put more efforts for this facility (Table-30)

Recreational Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 303 which is hardly more than indifferent level (ie 3) Chi square test

for this is also significant resulting that unions as a whole have been exerting efforts

for recreational facilities The Mean of satisfaction level of workers for unionsrsquo efforts

for this variable is hardly more than 3 so unions need to improve their efforts in this

regard The satisfied workers are 116 but unsatisfied workers 138 while 271 workers

are indifferent which shows that unions need to put more efforts for this facility

(Table-31) The mean being more than 3 is due to the fact that 36 workers were very

satisfied which put more weight in satisfaction side

Training Opportunities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 301 which is hardly more than indifferent level (ie 3) Chi square test

203

for this is resulting that unions as a whole have been exerting efforts for training

opportunities for workers The Mean of satisfaction level of workers for unionsrsquo

efforts for this variable is hardly more than 3 so unions need to improve their efforts in

this regard The satisfied workers 141 and unsatisfied workers 138 are almost equal

with 246 indifferent workers showing that unions need to put more efforts for this

facility (Table-32) The mean being more than 3 is due to the fact that 246 workers

were indifferent which put more weight in satisfaction side

Decreasing Workers Officers Wage gap Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 301 which is hardly more than indifferent level (ie

3) Chi square test for this is also significant resulting that unions as a whole have

been exerting efforts for decreasing gap of workers and officersrsquo wages The Mean of

satisfaction level of workers for unionsrsquo efforts for this variable is hardly more than 3

so unions need to improve their efforts in this regard The satisfied workers 144 are

slightly less than 150 unsatisfied workers with 231 workers indifferent (Table-33)

The mean touching to indifferent level is due to the fact that 13 responses are of very

satisfied This demands that unions need to put more efforts for exacting this facility

Information (Awareness) about Rights Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 344 which is more than indifferent level (ie 3) Chi

square test for this is also significant proving that unions as a whole have been

exerting efforts for awareness of workers about their rights On unionsrsquo efforts 304

workers were satisfied as compared to 79 un-satisfied workers which shows that

unions have really exerted efforts for exacting this facility (Table-34)

Workersrsquo Education Collective Mean of the Satisfaction Level of workers

responsesrsquo is 331 which is more than indifferent level (ie 3) Chi Square test for this

is also significant proving that unions as a whole have been exerting efforts for

arranging workers education On unionsrsquo efforts 234 workers were satisfied as

compared to 73 un-satisfied workers with 218 indifferent responses which shows that

unions have really exerted efforts for exacting this facility (Table-35) though there is

need of more efforts

204

The Combined Mean of satisfaction level of workers on efforts of unions for

securing benefits for them or protecting their rights is 334 (SW = 334) and Chi square

tests for all variables are also significant acknowledging the exertion of unionsrsquo efforts

for workersrsquo benefits

Hypotheses from H1 to H15 for all the variables have been rejected and

alternate view has been established This proves that unions as a whole have satisfied

their workers and they are successful in this respect

6122 Employer relating variables

Productivity Increase or Efficiency Improvement Over all sample Mean of the

Satisfaction Level of employersrsquo responses is 330 which is more than indifferent level

(ie 3) proving that unions as a whole have been exerting efforts by exhorting

workers for productivity increase performance or efficiency improvement of the

workers of the organizations Except employer of IESCO KTM and ZTBL employers

of other organizations are indifferent with union performance So these unions need to

improve the efforts in this respect

Work Place Harmony Over all sample Mean of the Satisfaction Level of employersrsquo

responses is 400 which is more than indifferent level (ie 3) proving that unions as a

whole have been exerting efforts for improvement of workplace peace and harmony of

the organization Only the management of PTCL was indifferent with union

performance So this union needs to improve the efforts in this respect

The Combined Mean of satisfaction level of employers on efforts of unions for

securing benefits for them is 365 (Se = 365 More than 50 percent workers also

confirmed that unions have been exerting efforts by exhorting and motivating them for

improving performance (increase of productivity and efficiency) and workplace

harmony It has also been confirmed by workers (see YES responses of respective

variables in column 2 of table in appendices F-1 to F10) The Hypotheses 16 and 17

have been rejected This proves that unions as a whole have satisfied the employers

and this is success of unions

205

613 Comparison with Non-Unionized Workers

All the benefits secured by unions for their workers were not enjoyed by

temporary workers (comparison of facilities in tables 55 amp 56) and if they are availing

a facility or favor they admitted that it is because of unions struggle for them such as

medical treatment or bonus facility in some organizations

Besides this ninety six percent of workers replied that unions are necessary for

organizations for watching the interest of workers and obtaining benefits for them

(Question 18 of the questionnaire 2 and table 57)

However unions have some weakness at their parts and unions could not play a

beneficial role in obtaining some facilities such as

1 Education facilities for the children of workers in the form of Education

allowance Scholarships or establishment of quality schools Mean of

satisfaction of workers on unionsrsquo struggle for this facility is 302 which is

marginally above the required level and unions need much to do in this regard

2 Post retirement benefits amp Pension Mean of satisfaction of workers on unionsrsquo

struggle for this facility is 313 which is slightly above the required level

showing that satisfaction level mean is not good and unions need to put more

efforts in this respect

3 Recreation facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility is 303 which is marginally above the required level and unions are

required to exert more efforts for this

4 Training facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility was 301 which is poorly above the required level Training is of vital

importance for HRD so unions need to put more efforts for this

5 In struggle for decreasing officers workers wage gap the Mean of satisfaction

of workers on unionsrsquo struggle for this facility is 301 which is marginally

above the required level and requires more struggle

206

Unions no doubt as a whole were marginally successful in arranging four out

of fifteen facilities ie Education facilities for children of workers Recreation

facilities Training opportunities and Decreasing gap between officers salaries and

workers wages even though few unions were successful in securing these facilities as

well but unions collectively remained very successful in wining other eleven facilities

and as a whole the mean of all fifteen facilities is 334 Values of Chi Squires of all the

variables were significant compelling to accept alternate hypothesis which is other

name of significant unionsrsquo role for exerting efforts to secure workers benefits and

playing a positive role in HRD It means unions did arrange many facilities for

workers and when it is compared with temporary workers who were not getting these

facilities and benefits and if they could avail some benefits even these are because of

unionsrsquo efforts or unionsrsquo Therefore Declining in membership is not because of

unionsrsquo failure so causes of unionsrsquo membership decline are to be sought somewhere

else

Unionsrsquo role for serving the purpose of employers is also very significant as

the combine mean of all variable showing employers interest is 365 above the union

tolerable level of 300 So unions are playing a positive role for workers benefits as

well as for employers benefit and have built positive industrial relations

Ninety six percent workers commented that unions are necessary for them it is

to be admitted that unions are necessary for organizations However 86 workers

expressed their unhappiness on inter union rivalry rendering them weak because 81

workers were of the opinion that present unions became weaker than unions in the past

decade so they should get rid of this weakening vice

As a consequence of information obtained as responses from workers and

management of the sampled organizations and above detailed discussion the opinion

that was developed in chapter one (in the paragraph of Existing Problem) ie cause of

membership decline might be unions are not exerting efforts for securing facilities

and benefits for workers and the allegation that unions only talk about workers rights

and ignore responsibilities and largely responsible for low productivity now has

changed to new opinion that unions

207

1 Exert efforts for securing benefit for their workers

2 Do talk about workersrsquo rights but do not ignore their obligations

3 Motivate the workers for increase of productivity efficiency as acknowledged

by management with satisfaction level mean 32

4 Do struggle to improve work place harmony (managementsrsquo mean of

satisfaction level is 40) As they try to motivate workers to improve work

place harmony so they do not interfere in the administration and smooth

working at the workplace

Analysis of data and discussion also gave answers of research questions

62 ANSWERS OF RESEARCH QUESTIONS

1 To much extent the unions in Pakistan are effective in securing benefits and

facilities for workers like

i- Rise in wages salaries ranging from15 to 35 with satisfaction level

mean 34

ii- Fringe benefits such as bonus with satisfaction level mean 33

iii- Providing job security with satisfaction level mean 379

iv- Relief in working hours if not successful in time reduction but successful

in resisting increase of working hours with satisfaction level mean 354

v- Successful in procuring health facilities for workers with satisfaction

level mean of 360

vi- played marginal role in procuring educational facilities for children of

workers and the mean value of workers satisfaction on their struggle is

302 Unions need to improve their efforts in this respect

208

vii- Successful in procuring overtime facility with satisfaction level mean

330

viii- Successful in arranging good working conditions with workers

satisfaction level mean 372

ix- If not successful in Leaves increase but successful in resisting decrease of

leaves The satisfaction level of workers is 353

x- As whole slightly successful in procuring post retirement benefits for

their workers with workers satisfaction level mean of 313 and need to

put more efforts

xi- As a whole marginally successful in procuring recreational facilities for

their workers with workers satisfaction level mean of 303 Unions need

to exert more efforts

xii- As a whole marginally successful in procuring training opportunities for

their workers with workers satisfaction level mean of 301 Unions need

to exert more efforts

xiii- As whole were marginally successful in decreasing gap of workersrsquo

wages and officersrsquo salaries and workers satisfaction level mean is 301

Unions need to exert more efforts

xiv- Playing satisfactory role in giving the workers awareness about their

rights with workers satisfaction level mean of 344

xv- Unions also played satisfactory role in affording education facilities for

workers with satisfaction level mean 331

2- To much extent the unions in Pakistan are effective in protecting employersrsquo

interests by

i) Increasing productivity or improving efficiency of workers with

employersrsquo satisfaction level mean of 330

209

ii) Improving harmony at workplace with employersrsquo satisfaction level

mean of 400

63 CONCLUSION

By viewing results of data analysis and detailed discussions it is found that

unions under study have been proved successful in securing benefits for workers

which is apparent from satisfaction level of the workers with numeric value 334 at 5

point Likert scale Similarly it is also found that unions under study have exerted

efforts in protecting interest of employers which is apparent from satisfaction level of

the employers with numeric value of 365 at the same scale Though the performance

might have been very satisfactory if these averages were either 5 (which is ideal and

highest level of satisfaction) or near to five These are overall average result because

performance of some unions for some variables is not satisfactory Particularly

performance of unions in securing benefits like lsquochildren educationrsquo lsquorecreation

facilitiesrsquo lsquotraining opportunitiesrsquo and decreasing difference of remunerations (wages

and salaries) of workers and officers is not very appreciable and needs more efforts to

be done by unions As the scale for success is means of satisfaction levels more than

3 and both these combine means are greater than 3 so unionsrsquo overall performance is

satisfactory It has further been found that workers deem that presence of unions in the

organization is necessary which they expressed with 96 percent majority and inter

unions relations are needed to be improved because 86 percent workers opined that

inter union relations are not good Further more according to IRO 2002 work council

comprising representatives of both management and workers is necessary but

presently out of ten organizations studied work council exists only in three

organizations which is 30 percent of sample and unions are required to exert efforts to

establish work council in rest of 70 percent organizations

In the light of above lines it is concluded that Null Hypothesis is rejected and

alternate hypothesis is proved right that the unions are beneficial bodies for

organizations and ultimately for Human Resource Development Although there is

210

room for improvement in exerting efforts for securing benefits for workers as well as

for protecting employersrsquo interest and improvement of their inter unions relations

64 SUGGESTIONS AND RECOMMENDATIONS

Unions no doubt are playing a positive role in industrial relations for HRD

being successful in exacting benefits and facilities from employers for their workers

and are also protecting interests of employers by stressing workers to increase

productivity improve discipline enhancing workplace peace and harmony and

keeping good attitude with employer or management But still there are weak areas

where more efforts are needed so they should

1- Exert efforts to exact better facilities for education of workersrsquo children

2- Exert efforts to arrange training opportunities for workers to build their

skill which will make them more productive workers for the

organization and also cause to increase their remuneration

3- Exert efforts to arrange recreational facilities for workers Where these

facilities are available need improvement and where these are not

available are needed to be demanded by respective unions and arranged

by managementemployers in the form of Recreation allowances

Entertainment allowance Sports clubs Picnic parties etc

4- Unions should arrange training for office bearers from some agency to

have better know how of handling labor affairs and workersrsquo problems

5- When overall performance of unions is viewed unions claim the exertion

of efforts for every benefit (appendices F-1 to F-10 column 9) whereas

mean value of satisfaction level of workers is 34 So unions should

improve by exerting more efforts so that workers may be more satisfied

6- When overall performance of unions is viewed unions claim for exerting

efforts for benefits of employers (column 9 of tables in appendices F-1 to

F-10) whereas mean value of satisfaction level of employers is 365

211

Unions should improve by exerting more efforts so that satisfaction level

of employers may be very satisfied

7- Eighty six percent workers commented that intra organizational unions

are rivals to each other So unions should cooperate to each other if

unions are more than one in the organization Their rivalry harms them

and also to workers cause

8- Unions of today are weaker than unions a decade ago No doubt one

reason as workers told during interviews for this is non-democratic

regime but inter unions rivalry is also a reason for this so unions should

co-operate to each other in struggle for workers cause

9- Office bearers of four unions were not trained by any agency as unionists

to handle unionsrsquo matters Therefore Ministry of Labor amp man Power

should arrange training through any agency like (ILO NILAT) so that

they may be proved better unionist

10- There are Work Councils in only three organizations where as it is a legal

obligation according to section 24 of IRO 2002 Therefore unions should

demand and Government of Pakistan should arrange to form Work

Councils for prompt solution of workers problems

11- Unions sign charter of demand but intervals are different either 2 or

3years and of CDA union are not regular Unions and Employers should

sign charter of demand with regular intervals and this interval should be

two years

212

65 SUGGESTIONS FOR FURTHER RESEARCH

It is neither necessary nor easy that a research can determine causes of all the

problems or can explore all the aspects of a problem or can seek the solutions of a

problem for ever So any research can not be a final or comprehensive and there is

always need to explore better solutions of a problem or other facets of any discovery

Therefore researcher feels and admits that much work is to be done in presently

researched area In this regard for further researchers it is suggested to

1- Determine the causes of declining membership of labor unions in Pakistan

particularly in private sector after privatization

2- Determine the role of labor unions in politics of the country and in

movement of freedom of Pakistan

3- Explore the role of legislation and labor judiciary in providing relief to

labor unions or employers in the matter of conflicts

4- Enquire the social role of labor unions in solving social problems of

workers beyond collective bargaining

5- Estimate the role of labor unions in smaller industries or establishments in

solving the problems of workers by securing financial and non financial

benefits for workers

6- Search the affects of privatizations on the strength and activities of unions

in Pakistan

7- Explore the affects of globalization on the unionization unionsrsquo activities

and workers

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Preuss G (1998) Committing to Care Labor-Management Cooperation and Hospital

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Quah J S T (1993) Human Resource Development in Four Asian Countries Some

Lessons for the Commonwealth Countriesrdquo Commonwealth Secretariat

London

Rao TV (1995) Human Resources Development Experiences Interventions

Strategies National Book Foundation Islamabad Pakistan

Rizvi Sarwar (1973) ldquoIndustrial Labour Relations in Pakistanrdquo National Institute of

Social and Economic Research Karachi Pakistan

Robles B S Sanchez N S and Millan P C (2004) Unions Wages and

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225

2006from http www ecomod netconferencesecomod2004 ecomod2004_

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Saavedra J and Torero M (2002) Union Density Changes and Union Effects on Firm

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httpwwwiadborgrespublicationspubfilespubR-465pdf

Sennholz H F (1983) Benefit Mandates Cause Unemployment The Foundation for

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httpwwwfeeorgvnewsphpnid=1279ampprintable=Y

Shafiq-ur-Rehman (2003) Collective Bargaining and Wage Determination in Pakistan

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Song H K (1999) Labour unions in the Republic of Korea Challenge and choice

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htm

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226

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227

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228

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229

APPINDICES

Appendix A-1

Workers by Designation of ARL

Designation Number Of Workers Interviewed

Supervisor 1

Driver 4

Photographer 1

Personal Assistant 1

Petrol Pump Operator 2

Sign Board Writer 1

Senior Fitter 3

Senior Gas Fitter 2

Fitter 4

Pump Operator 4

Plant Operator 7

Total 30

230

Appendix A-2

Workers by Designation of CDA

Designation No of Workers Interviewed

Helper 10

Firemen 10

Cook 2

Work Supervisor 1

Beldar 8

Mali (Gardner) 3

Guage Reader 1

Frash (Sweepers) 5

Security Guard 5

Mate 4

Electrician 2

UpperLower Div Clerk 8

Assistant 2

Forest Guard 4

Driver 2

Telephone Operator 1

Sub Engineer 1

Draftsman 1

Total 70

231

Appendix A-3

Workers by Designation of IESCO

Designation No of Workers

Interviewed

Assistant Sub Station Attendant 8

Security Guard 2

Assistant Line Man amp Line Man 19

Computer Operator 2

Meter Reader 4

Driver 2

Line Superintendent 4

Assistant Foreman 2

Sub Station Operator 8

Guard 2

Commercial Assistant 4

Upper Division Clerk 2

Naib Qasid 8

Draftsman 1

Safety Inspector 2

Total 70

232

Appendix A-4

Workers by Designation KTM

Designation No of Workers

Interviewed

Assistant Operator 2

Checker 2

Assistant Fitter 2

4-C- Sider 2

Pifcer 2

8-C-Sider 4

Electritian 2

Power House Operator 1

Ring Operator 10

Plant Operator 2

Helper 6

Total 35

233

Appendix A-5

Workers by Designation of OGDCL

Designation No of Workers Interviewed

Helper 15

Driver 4

Lower Division Clerk 4

Lift Operator 2

Engine Driver 4

Auto Electrician 1

Dispatcher 4

Supervisor 2

Store Assistant 2

Admin Assistant 4

Procurement Assistant 4

Naib Qasid 4

Total 50

234

Appendix A-6

Workers by Designation of PCP

Designation No of Workers Interviewed

Assistant 2

Store Keeper 2

Computer Operator 6

Proof Reader 3

Copy Holder 4

Steno Grapher 2

Typist 4

Machine Man 7

Lower Division Clerk 5

Upper Division Clerk 5

Security Guard 4

Naib Qasid 6

Total 50

235

Appendix A-7

Workers by Designation PTCL

Designation No of Workers Interviewed

Technician 14

Accounts Clerk 8

UDCLDC 8

Wireman 2

Lineman 15

Key Punch Operator (KPO) 8

Assistant 3

Naib Qasid 6

Walk Messenger 2

Plumber 2

Teleprinter Printer 2

Total 70

236

Appendix A-8

Workers by Designation PTV

Designation No of Workers Interviewed

Store Assistant 4

Driver 4

Electrician 5

Admin Assistant 4

Accounts Assistant 4

Producer 3

Publishing Machine Operator 2

Typist 4

Dispatch Rider 4

Stenographer 2

Camera Man 4

Sanitary Worker 4

Naib Qasid 6

Total 50

237

Appendix A-9

Workers by Designation of SNGPL

Designation No of Workers Interviewed

Associate Engineer 2

Supervisor Admin Cash Billing Revision

Sales Fittier

12

Typist 3

Record Keeper 3

Drivers 4

Meter Mechanic 4

Fitter 4

UDC LDC 4

Meter Readers 6

Helpers 6

Tracers 2

Total 50

238

Appendix A-10

Workers by Designation of ZTBL

Designation No of Workers Interviewed

Naib Qasid 14

Assistant 18

Cashier 4

Typist 6

StenographersSecretary 6

TelephoneOperator 2

Total 50

239

Appendix A-11

Representatives of Unions and Employers Interviewed

Organization Employersrsquo

Representative

Unionsrsquo

Representative

ARL Manager Human Resource General Secretary

CDA Deputy Director

Administration amp Labor

President

IESCO Manager Human Resource General Secretary

KTM Manager Human Resource General Secretary

OGDCL Manager Human Resource General Secretary

PCP Manager Human Resource President

PTCL General Manager Human

Resource

General Secretary

PTV Controller Administration

amp personnel

President

SNGPL Manager Human Resource General Secretary

ZTBL SVP amp Head H R amp

Operations Division

General Secretary

240

Appendix - B-1

Workers by EstablishmentPlace of Posting Interviewed ARL

Name Of Office Site Or Establishment Number Of Persons

Administrative Offices 4

Main Factory 20

Parking and petrol pump 6

Total 30

241

Appendix B-2

Workers by EstablishmentPlace of Posting Interviewed CDA

Name Of Office Site Or Establishment Number Of Persons

Environment Directorate 14

Sanitation Directorate 14

Administration Directorate 14

Enforcement Directorate 14

Revenue Directorate 14

Total 70

242

Appendix B-3

Workers by EstablishmentPlace of Posting Interviewed IESCO

Name Of Office Site Or Establishment Number Of Persons

Head Office Islamabad 6

Executive Engineer Office G-7 Islamabad 4

Executive Engineer Office Rawalpindi

Cantt

5

SDO Office Islamabad 10

SDO Office Rawalpindi Cantt 10

Grid Station Chishtia Abad Rawalpindi 5

Grid Station Zero Point Islamabad 5

Grid Station I-9 Islamabad 5

Grid Station H-11 Islamabad 5

Customer Service Centre Islamabad 5

Complaint Office Islamabad 5

Executive Engineer Office I-9 Islamabad 5

Total 70

243

Appendix - B-4

Workers by EstablishmentPlace of Posting Interviewed KTM

Establishment Place Number of Workers

Main Factory 32

Power House 3

Total 35

244

Appendix B-5

Workers by EstablishmentPlace of Posting Interviewed OGDCL

Name of Office Site or Establishment Number of Persons

Procurement Deptt 4

Administration Deptt 4

Engineering Deptt 4

Survey Deptt 4

Marketing Deptt 4

Stores ndashI9 Deptt 3

Training (OGTI) 1

Jand Oil Field 4

Loti Oil Field 4

Rahim Yar Khan Oil Field 4

Chaknaurang Oil Field 4

Lkot Satang Oil Field 4

Einkasar Oilfield 4

Service Station 2

Total 50

245

Appendix B-6

Workers by EstablishmentPlace of Posting Interviewed PCP

Name of Office Site or Establishment Number of Persons

Head Quarter PCP Islamabad 21

PCP Press Islamabad 29

Total 50

246

Appendix B-7

Workers by EstablishmentPlace of Posting Interviewed PTCL

Name of Office Site or Establishment Number of Persons

PTCL Head Quarter G-8 Islamabad 10

DE Office F-8 Islamabad 7

DE Office Westridge Rawalpindi 7

DE Office Cantt Rawalpindi 7

Telephone Exchange Westridge Rawalpindi 6

Telephone Exchange Cantt Rawalpindi 7

DE Office Satellite Town Rawalpindi 2

Revenue Office Rawalpindi 7

Civil Maintenance Office Rawalpindi 2

Customer Services Centre Rawalpindi 2

Customer Services Centre G-9 Islamabad 2

Customer Services Centre Zero Point Islamabad 5

Telephone Exchange F-8 Islamabad 6

Total 70

247

Appendix B-8

Workers by EstablishmentPlace of Posting Interviewed PTV

Name of Office Site or Establishment Number of Persons

Head Quarter Administration Offices 11

Ptv Head Qurter Telecasting 30

Ptv-1 Etv 9

Total 50

248

Appendix B-9

Workers by EstablishmentPlace of Posting Interviewed SNGPL

Name of Office Site or Establishment Number of Persons

Construction Department 7

Connection Department 7

Meter Reading Department 7

Billing Department 8

Sales Department 7

Recovery Department 7

Administration Department 7

Total 50

249

Appendix B-10

Workers by EstablishmentPlace of Posting Interviewed ZTBL

Name of Office Site or Establishment Number of Persons

Credit Division 6

Law Division 6

Recovery Division 6

General Services Division 6

Human Resource Division 6

Audit Division 6

Zonal Office 4

Zero Point Branch 4

G- 7 Branch 4

Sensa Branch 2

Total 50

250

Appendix C-1

Financial Benefits of Workers (by Unionsrsquo Efforts)

W-rise Percentage Number of

Bonuses

Other Allowances

Org

Name

Previous

Charter

Present

Charter

Previous

Charter

Present

Charter

ARL 22 18 5 41 5 of profit also paid to workers

CDA 20 20 2 22 Talwar All Dress All Washing All

IESCO 15 15 - - Hardship All and free electricity2

KTM - - 4 13 -5 of profit paid to workers

-Employer contributes Equivalent to

5 of salary to Employees Old Age

Benefit Institute

- Employer contributes Equivalent to

5 of salary to Social Security

OGDCL 191

20 2 24 Field Allowance for field staff amp 5

of profit to workers

PCP 15 15 - - Tea Allowance Capital Allowance

Night Allowance

PTCL - 35 1 15

PTV 25 25 1 1 Technical Allowance Heavy Duty

Allowance etc

SNGPL 15 15 2 2 Recreation All Half basic

ZTBL 15 15 2 2 Interest free loans

251

1- 4 four bonuses are compulsorily paid but more than are depending on profit

2- Tow bonuses are paid every year on Eid occasion and every bonus is of Rs

2000 only

3- In KTM profit decreased because of crisis in textile sector so bonus reduced to

one

4- Two bonuses are compulsory and if there is discovery in the year then

discovery bonus is also paid and called Discovery Award

5- In PTCL one Bonus is paid every year In 2005 bonus amount was Rs 16000

but in 2006 it reduced to Rs 9000 only and union filed a suit in NIRC for this

reduction

252

Appendix C-2

Non Financial Facilities of Workers (by Union Efforts)

OrganizAtion

Name

J-sec Hours

week

Annual Leaves Others

ARL Yes 40 40 Cheapest canteen

Medical Treatment

CDA Yes 39 68 Plots

Medical Treatment

IESCO Yes 375 73 Free Electricity

Medical Treatment

KTM Yes 48 40 Free House Free Gas

Free Electricity

Medical Treatment

OGDCL Yes 385 68 Recreation Clubs

Medical Treatment

PCP Yes 40 68 Medical Treatment

PTCL Yes 41 68 Call of 200 units free

Medical Treatment

PTV Yes 365 68 Medical Treatment

SNGPL Yes 39 68 Medical Treatment

ZTBL Yes 39 68 Medical Treatment

253

Appendix C-3

Monthly Wages of Workers (on December 31 2006)

Name of Org

Less Than Rs

4000-

Rs4000- to Rs 5000-

5000- To

10000

10001 to

15000-

15001 to

20000-

20001 to

25000

Above Rs

25000-

Total

ARL - - - 25 3 2 - 30

CDA - 6 52 12 - - - 70

IESCO - 2 36 28 4 - - 70

KTM - 20 13 2 - - - 35

OGDC - - 15 14 5 14 2 50

PCP - 2 36 12 - - - 50

PTCL - - 8 32 28 2 - 70

PTV - - 5 7 15 5 18 50

SNGPL - - - 19 18 9 4 50

ZTBL - - 8 20 16 4 2 50

Total - 30 173 171 89 36 26 525

Percentag

e

0 571 3296 3257 1695 686 495 100

Up to Rs 10000- 3867

From 10000 to 20000- 4952

Above Rs 20000 1181

254

Appendix D-1

Nature of Sampled Organizations

S

No

Name of

Organization

Organization

ActivityBusiness

Nature

Legal Status

Owned Controled

by

1 Attock Refinery Ltd

(ARL)

Oil Refining Public Limited Private

2 Capital Development

Authority (CDA)

Town Planning

City Municipal

Services

Government

Autonomous Body

Government of

Pakistan

3 Islamabad Electric

Supply Company

(IESCO)

Electric Power

Supply

Government

Autonomous Body

Government of

Pakistan

4 Koh-i-Noor Textile

Mills Ltd

Textile

Manufacturing

Public Limited Private

5 Oil amp Gas

Development

Corporation Ltd

(OGDCL)

Oil amp Gas

Exploration and

extraction

Semi Government

Autonomous Body

Government of

Pakistan

6 Printing Corporation

of Pakistan (PCP)

Printing and

Publication

Government

Autonomous Body

Government of

Pakistan

7 Pakistan

Telecommunication

Corporation Ltd

(PTCL)

Telephone Services Public Limited Private

8 Pakistan Television

Corporation

Telecasting

Information

Government

Autonomous Body

Government of

Pakistan

9 Sui Northern Gas Pipe

Line Ltd (SNGPL)

Natural Gas Supply Semi Government

Autonomous Body

Government of

Pakistan

10 Zari Tarraqiati Bank

Ltd (ZTBL)

Banking Government

Autonomous Body

Government of

Pakistan

255

Appendix D-2

Sampling Detail

S No

Name of

Organization

Total

Unions

Total

Permanent

Workers

Permanent

Workers

Sampled

Total

Temporary

Workers

Temporary

Workers

Sampled

1 (ARL) 1 438

30 157 10

2 (CDA) 3 14000

70 1300 10

3 (IESCO) 2 12700

70 854 10

4 (KTM) 2 1940

35 1655 10

5 (OGDCL) 2 9338

50 752 10

6 (PCP) 1 545

50 - -

7 (PTCL) 4 59700

70 2430 10

8 (PTV) 2 870

50 365 10

9 (SNGPL) 2 7600

50 610 10

10 (ZTBL) 1 2520

50 325 10

Total 20 109661

525 8448 90

256

Appendix E-1

Abbreviations for Words Used in Analysis Tables

Abbreviation Explanation

FREQ or Freq Frequency

IND Indifferent

ORG Organization

RES Respondents

S Satisfied

US Un-satisfied

UN Union

VAR Variables

VS Very Satisfied

VUS Very Un-satisfied

WT or Wt Weight or weighted

Y YES

N NO

Σ Sum Total

257

Appendix E- 2

List and Codes of Variables Used

Name of Variable Code of

Variable

Type of

Variable

Variable

Pertaining to

Success of Union Su Dependent Union

Satisfaction of Workers Sw Mediating Workers

EmployersManagement Satisfaction Se Mediating Employers

Management

Wag-Rise Wris Independent Workers

Financial Benefits (bonus) Fbft Independent Workers

WorkerOfficer Wage Salary Difference

Reduction

Wdf Independent Workers

Job Security Jsec Independent Workers

Time Reduction Td Independent Workers

Leaves Increase Linc Independent Workers

Over Time Ot Independent Workers

Working Conditions Wcon Independent Workers

Health Facility Hfac Independent Workers

Children Education Ced Independent Workers

Post retirement Benefits Pension Prb Independent Workers

Recreation Rfac Independent Workers

Training opportunities Top Independent Workers

Workers Education We Independent Workers

Workersrsquo Productivity Efficiency

performance improvement

Pin Independent Management

Work Place Harmony Wph Independent Management

Informing workers about Rights Ir Independent Workers

and mediating variables because act as independent as unionrsquos success depends

on them but they are further dependent on independent variables comprising

workersrsquo and employersrsquo responses respectively

258

Appendix ndash F-1

Responses of Union Workers and Management of ARL

(Attock Refinery Limited)

Respon dents

Workers Union

Manage-ment

VAR

YES NO VS

S

IND

US

VUS

UN RES

MGT RES

WT

Wris 30 - 2 20 8 - - Y Y -

Fbft 28 2 8 16 4 2 - Y Y -

Jsec 30 - 8 18 4 - - Y Y -

Td 4 26 16 14 - - Y Y -

Linc 26 4 24 6 - - Y Y -

Ot 26 4 20 10 - - Y Y -

Wcon 30 4 22 4 - - Y Y -

Hfac 30 - 20 6 4 Y Y -

Ced 22 8 2 14 10 4 Y Y -

Prb 8 22 - 2 14 14 Y Y -

Rfac 12 18 2 10 8 10 Y Y -

Top 10 20 18 8 4 Y Y -

We 16 14 12 14 4 Y Y -

Wdf 18 12 6 8 12 4 Y Y -

Ir 24 6 16 12 2 Y - -

Pin 26 4 Y IND 3

Wph 28 2 Y S 4

259

Appendix ndash F-2

Responses of Union Workers and Management of CDA

(Capital Development Authority)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGE RES

WT

Wris 44 26 40 14 16 Y Y -

Fbft 70 62 6 2 Y Y -

Jsec 54 16 48 18 4 Y Y -

Td 23 47 36 32 2 - Y N -

Linc 23 47 35 33 2 Y N -

Ot 36 34 30 32 8 Y Y -

Wcon 46 24 30 28 12 Y Y -

Hfac 44 26 40 14 16 Y Y -

Ced 18 52 13 48 09 Y Y -

Prb 64 6 14 50 6 0 Y Y -

Rfac 4 66 58 12 Y N -

Top 12 58 10 20 40 Y Y -

We 44 26 28 34 8 Y N -

Wdf 28 42 28 28 14 Y Y -

Ir 56 14 54 10 6 Y - -

Pin 36 34 Y IND 3

Wph 55 15 Y S 4

260

Appendix ndash F-3

Responses of Union Workers and Management of IESCO (Islamabad Electric Supply Company)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 53 17 - 26 22 22 - Y Y -

Fbft 8 62 2 12 56 - Y N -

Jsec 59 11 7 40 13 10 - Y Y -

Td 52 18 - 40 23 7 - Y Y -

Linc 50 20 - 40 25 5 - Y N -

Ot 54 16 36 20 14 - Y Y

Wcon 56 14 50 10 10 - Y Y -

Hfac 52 18 26 24 20 - Y Y -

Ced 29 41 9 44 17 - Y Y -

Prb 16 54 4 46 20 - Y Y -

Rfac 17 53 47 23 - Y Y -

Top 27 43 22 34 14 - Y Y

We 43 27 - 36 24 10 - Y N -

Wdf 18 52 - 2 37 31 - Y N -

Ir 54 16 - 49 10 11 - Y - -

Pin 50 20 - Y S 4

Wph 57 13 - Y FS 5

261

Appendix ndash F-4

Responses of Union Workers and Management of KTM (Koh-i-Noor Textile Mills Limited)

Respondents

Workers Union Manage-ment

VAR YES NO VS S IND US

VUS

UN RES

MGT RES

WT

Wris 10 25 - 10 4 21 Y N -

Fbft 27 8 - 17 17 1 Y Y -

Jsec 20 15 - 15 10 10 Y Y -

Td - 35 - 13 13 9 Y N -

Linc - 35 - 10 16 9 Y N -

Ot 16 19 - 12 15 8 Y N -

Wcon 30 5 - 30 5 - Y Y -

Hfac 31 4 6 25 4 - Y Y -

Ced 35 4 20 11 - Y Y -

Prb 22 13 - 17 10 8 Y - -

Rfac 19 16 - 16 10 9 Y N -

Top 35 22 13 Y N -

We 17 18 12 17 6 Y Y -

Wdf 2 33 2 7 26 Y N -

Ir 25 10 20 12 3 Y -- -

Pin 19 16 Y S 4

Wph 29 6 Y S 4

262

Appendix ndash F-5

Responses of Union Workers and Managementof OGDC (Oil and Gas Development Company Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 35 15 - - Y Y -

Fbft 46 4 2 34 10 4 - Y Y -

Jsec 50 - - 45 5 - - Y Y -

Td 50 - - 40 10 - - Y Y -

Linc 45 5 - 40 10 - - Y Y -

Ot 28 22 - 22 16 12 - Y Y -

Wcon 43 7 4 33 10 3 - Y Y -

Hfac 50 - 17 28 5 - - Y Y -

Ced 22 28 - 8 36 06 - Y Y -

Prb 29 21 - 27 13 10 - Y Y- -

Rfac 37 13 18 14 14 4 - Y Y -

Top 27 23 4 19 20 7 - Y Y -

We 30 20 - 21 19 10 - Y N -

Wdf 34 16 5 26 14 5 - Y Y -

Ir 46 4 - 34 12 4 - Y - -

Pin 39 11 - Y IND 3

Wph 45 5 - Y S 4

263

Appendix ndash F-6

Responses of Union Workers and Management of PCP (Printing Corporation of Pakistan)

Respon

dents

Workers Union Manage-

ment

VAR YES NO VS S IND US V

US

UN

RES

Mgt

Res

Valu

e

Wris 44 6 37 4 9 Y Y -

Fbft 44 6 33 8 9 Y Y -

Jsec 47 3 4 40 4 2 Y Y -

Td 50 40 4 6 Y Y -

Linc 50 38 7 5 Y Y -

Ot 45 5 37 9 4 Y Y -

Wcon 41 9 39 6 5 Y Y -

Hfac 42 8 40 5 5 Y Y -

Ced 11 39 11 16 23 Y N -

Prb 33 17 5 30 15 Y Y -

Rfac - 50 30 20 Y N -

Top - 50 24 26 Y N -

We 26 24 30 20 Y N -

Wdf 5 45 5 37 8 Y N -

Ir 38 12 20 21 9 Y - -

Pin 41 9 Y IND 3

Wph 44 6 Y S 4

264

Appendix ndash F-7

Responses of Union Workers and Management of PTCL

(Pakistan Telecommunication Corporation Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO

VS S IND US VUS

UN RES

MGT RES

WT

Wris 56 14 28 18 24 - Y Y -

Fbft 42 28 14 16 40 Y Y -

Jsec 50 20 2 39 15 14 - Y Y -

Td 42 28 40 20 10 - Y Y -

Linc 40 30 36 24 10 - Y Y -

Ot 18 52 10 38 22 - Y Y -

Wcon 51 19 36 24 10 - Y Y -

Hfac 50 20 44 16 10 - Y Y -

Ced 34 36 11 32 27 - Y N -

Prb 24 46 4 44 22 - Y N -

Rfac 70 40 30 - Y N -

Top 26 44 16 40 14 - Y Y -

We 22 48 19 39 12 - Y N -

Wdf 14 56 32 38 - Y Y -

Ir 36 34 18 34 18 Y - -

Pin 34 36 - Y IND 3

Wph 40 30 - Y IND 3

265

Appendix ndash F-8

Responses of Union Workers and Management of PTV (Pakistan Television Corporation)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 45 5 6 26 14 4 Y Y -

Fbft 40 10 - 36 12 2 Y Y -

Jsec 48 2 7 39 3 1 Y Y -

Td 42 8 37 10 3 Y Y -

Linc 40 10 38 9 3 Y Y -

Ot 43 7 41 6 3 Y Y -

Wcon 44 6 39 11 Y Y -

Hfac 39 11 37 5 8 Y Y -

Ced 32 18 13 20 17 Y Y -

Prb 37 13 21 24 5 Y Y -

Rfac 12 38 10 34 6 Y N -

Top 16 34 16 24 10 Y Y -

We 39 11 33 8 9 Y Y -

Wdf 32 18 23 14 13 Y Y -

Ir 99 11 - 30 10 10 Y -

Pin 43 7 Y IND 3

Wph 47 3 Y YS 4

266

Appendix ndash F-9

Responses of Union Workers and Management of SNGPL (Sui Northern Gas Pipe Line Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 47 3 7 30 10 3 Y Y -

Fbft 47 3 5 30 12 3 Y Y -

Jsec 48 2 5 34 11 Y Y -

Td 44 6 34 16 Y N -

Linc 40 10 32 18 Y N -

Ot 44 6 3 21 23 3 Y Y -

Wcon 45 5 3 40 4 3 Y Y -

Hfac 39 11 4 34 10 2 Y Y -

Ced 11 39 6 22 22 Y Y -

Prb 46 4 37 8 5 Y Y -

Rfac 47 23 16 30 2 2 Y Y -

Top 15 35 10 34 6 Y Y -

We 22 28 15 25 10 Y Y -

Wdf 32 18 - 17 28 5 Y Y -

Ir 37 13 25 14 11 Y - -

Pin 39 11 Y IND 3

Wph 47 3 Y S 4

267

Appendix ndash F-10

Responses of Union Workers and Management of ZTBL (Zarhi Tarraqiatti Bank Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS

S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 32 14 4 - Y Y -

Fbft 42 8 28 14 8 - Y Y -

Jsec 50 - 26 20 4 - - Y Y -

Td 50 28 16 6 - Y Y -

Linc 50 28 14 8 Y Y -

Ot 36 14 16 12 22 - Y Y -

Wcon 45 5 32 14 4 - - Y Y -

Hfac 40 10 1 38 4 7 - Y Y -

Ced 28 22 22 22 6 - Y Y -

Prb 12 38 2 18 30 - Y Y -

Rfac 8 42 28 22 - Y Y -

Top 30 20 26 20 4 - Y Y -

We 32 18 28 18 4 - Y Y -

Wdf 30 20 2 20 22 6 - Y Y -

Ir 42 8 4 34 7 5 - Y - -

Pin 31 19 - Y S 4

Wph 40 10 - Y S 4

268

Appendix ndash F-11

Essentiality of Unions Inter Unions Relations and Unions Status as Compared to Past

(Workers Responses)

Questions

QNo 18 Is Union Essential in yourganization

QNo 19 Are Inter Union Relations Good in Your Organization

QNo 20 Are Unions of Today Weaker Than Unions ofthe Past

Name of Number of Number of Responses

Number of Responses

Number of Responses

Org Respo ndents

Unions in Org

Yes No Yes No Yes No

ARL) 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

269

Appendix ndash F-12

(Questionnaire-1 Question 18amp 19) About Work Council and Unionistsrsquo Training

(Union Office Bearersrsquo Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does union sign Charter of Demand

Q- 20 Have you been imparted training as unionrsquos office bearer by any agency

ARL YES Yes-after every three years Once by ARL in NILAT

and Once by PWF

CDA YES Yes-(interval not regular) Yes Once by ILO amp once

by APFOL

IESCO YES Yes-after every three years Yes- by our union

KTM NO Yes-after every three years Never

GDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Yes by WTO

PTCL NO Yes-after every three years Yes ndash by ILO

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Yes by NILAT

270

Appendix ndash F-13

About Charter of Demand and Wage Cut

(Management Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does Union Sign Charter of Demand

Q- 20 Did Union Accept Wage cut any Time

ARL YES Yes-after every three years Never

CDA YES Yes-(interval not regular) Never

IESCO YES Yes-after every three years Never

KTM NO Yes-after every three years Never

OGDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Never

PTCL NO Yes-after every three years Never

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Never

271

Appendix G-1

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR UNION OFFICE BEARERS-1

PERSONAL INFORMATION

Name of Company Institution ----------------------------Public Private

Name of office bearer----------------------------------------------------------

Designation---------------------

Nature of Duty------------------------------------------------------------------------------------

No of unions in organization--------------------Is Your Union ldquoCBArdquo---------- ------

Union registered with -----------Registrar------------NIRC------------

Name of your Union---------------------------------------Status in Union-----------------

Experience of union office in years-------------------Years of present status----------

UNION INFORMATION

1- Did Union exert efforts to Increase workers Wages ------ Yes-------- No------

If yes how much increased---------------------- In percentage---------------------------

Increase how many times-------------------After how long interval--------------------------

--

2- Did union exert efforts for Fringe Benefit of workers like Bonus Yes-- No----

272

If yes how much amount-------------------------- How many times a year-------------------

3 Did union exert efforts for workers Job Security ------ Yes-- No--

If yes then how----------------------------------------------------------------------------------

4- What are workersrsquo Duty Timings

Arrival time------------------------------Break--------------------- Leaving time --------------

Total Daily hours ------------ Weekly hours----------------- Weekly working days------

Did union exert efforts for reduction in workers duty hours------Yes-----No----------

If yes then how much time reduced--------per day----------------per week------------------

5- Did union exert efforts to increase workers Leaves--Yes No------

How---------------------------------------------------------------------------------------

6- Did union exert efforts for payment of Overtime for workers --- Yes No --

If yes then with these efforts are you

7 Did union exert efforts to improve Working Conditions and provide facilities

Yes------NO--------------

8- Did union exert efforts for Health care of workers ---- Yes No ---------

i- Arranged to establish Hospital-------------------------------------------------

ii- Arranged medical Allowance--------------------------------------------------

iii- Treatment Arrangements for family-------------------------------------------

iv- Treatment Arrangements for parents ----------------------------------------

v- Any other-------------------------------------------------------------------------

273

9- Did union exert efforts for Education of workersrsquo Children Yes--- No ---

i- Established School------------------------------------

ii- Arranged Scholarship--------------------------------

iii- Arranged Transport of School------------------------

iv- Provides education Allowance-----------------------

v- Any other Arrangement------------------------------

10- Did union exert efforts for Post Retirement Benefits of Workers Yes No----

i- Arranged pension facility-------------------------------

ii- Increase of pension amount-----------------------

iii- Any other----------------------------------------

If yes then with these efforts are you

11- Did union struggle to arrange Recreational Facilities for workers Yes No --

How Details -----------------------------------------------------------------------

With this are you

12- Did union struggle to arrange any Training for workers --- Yes No ----

If yes then how --------------------------------------------------------------------

13 Did union try to decrease workers officers Wagesalary differenceYes-- No--

14- Did union inform the workers about their Rights as worker --- Yes---- No --

If yes then how

15 Did union struggle to arrange Education Facility for workers --- Yes---- No --

----------------------------------------------------------------------------------------------------------

274

16- Did union exert efforts to Increase workers Productivity Performance

Yes-----No----------

17- Did union exert efforts to Increase workplace Peace Harmony --- YesNo

How-------------------------------------------------------------------------------------

18 Is there Work Council in the Organization to solve problems with negotiation

Yes-----No----------

How-------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20- Have you been imparted training as office bearers to conduct unionrsquos matters by

Any agency------------Yes------- No------Tell details---------------------------------

Was this training arranged by union------Yes No

275

Appendix G-2

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR WORKERS-2

Personal Data

Name of Company Institution ------------------------------------ Public ----Private----

Designation----------------- Service Length------- Age----------Education----------

Experience in present institution-------------------Total Experience---------------

Nature of Duty------------------------------------------------

Number of Unions in Institution-------- Are You Union member ----------

Since how many years ----------

Name of your Union------------------------------ Is Your Union ldquoCBArdquo ----------

Your Present Wage------------------------------------------------------------------------------

Basic Pay---------------------Allowances---------------------Total------------------------------

Union Data

1- Is There any Increase in Your Wage Due to Union ------ Yes--- No----

If Yes How Much----------------------------- In Percentage----------------------------

Increase How Many Times-------------------After How Long Interval---------------

With this Increase are you

276

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied-

2- Did Union Exert Efforts for any Fringe Benefit Like Bonus For Workers

Yes----No----

If Yes Amount------------------- -----------------How Many Times a Year------------

With these efforts are you

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied

3- Did Your Union Exert Efforts for Workers Job Security -----Yes ---No------

If yes then with these efforts are you

Fully Satisfied------Satisfied-------Indifferent-------Unsatisfied-------Fully Unsatisfied-----

4- What are Your Duty Timingshours

Arrival Time---------------------------Break------------------------ Leaving Time --------------------

Daily Hours --- --------- -----Weekly Hours -------------- Weekly Working Days-----------

Did Union Exert Efforts for Reduction in Working Hours----------Yes---------No--------

If Yes Then How Much Time Reduced---------Per Day-------------------Per Week-----------

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

5- Did Union Exert Efforts To Increase Workersrsquo Leaves

Yes ------No-----

If Yes then how many leaves Increased--------------------------------------------

With these efforts are you

277

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

6- Did union exert efforts for payment of overtime for worker Yes ------No-----

If yes then how-------------------------------------------------------------------------------

With these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

7 Did Union Exert Efforts To Improve Working Conditions --Yes ------No-----

With these efforts what is you over all satisfaction level

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

8 Did Union Exert Efforts For Health of Workers ---------Yes ----No-----

vi- Arranged to Establish a Hospital-------------------------------------------------

vii- Arranged Medical Allowance------------------------------------------------------

viii- How Much is Medical Allowance-------------------------------------------------

ix- Treatment Arrangements for Family---------------------------------------------

x- Treatment Arrangements for Parents -------------------------------------------

With These Efforts Are You

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

9- Did Union Exert Efforts for Education of Workers Children YesNo-----

vi- Established School---------------------------------------------- Yes ----No-----

vii- Arranged Scholarship------------------------------------------- Yes ----No----

278

viii- Arranged Transport Of School-------------------------------- Yes ----No-----

ix- Provides Education Allowance-------------------------------- Yes ----No-----

x- School Bus Arrangement--------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

10- Did Union Exert Efforts for Post Retirement Benefits of Workers ----YesNo

iv- Arranged Pension Facility------------------------------------- Yes ----No----

v- Increase of Pension Amount---------------------------------- Yes ----No----

vi- Any Other-------------------------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

11- Did Your Union Arrange Any Recreational Facilities -----Yes -----No------

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

12- Did You Ever Receive Any Training ---- ------------------------- Yes No ------

What sort of training ---------------------------------------------------------------------

Was This Training Because of Efforts of Union-------------------------------------

If Yes Then How --------------------------------------------------------------------------

Are you satisfied with this

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

13- Did Union Try to Decrease Wage Salary Difference of Officers and Workers

YesmdashNo--

If yes then with these efforts are you

279

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied-------Fully Unsatisfied---

14- Did Your Union Inform You about Your Rights As Worker Yes ----No--

If Yes Then How --------------------------------------------------------------------------

15- Did Your Union Arrange Any Education Facilitiesfor you ---Yes -----No-----

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied

16 Did Union Exert Efforts to Increase Workers ProductivityEfficiency

Yes -----No-----

If yes then with these efforts are you

17- Did Union Exert Efforts to Increase Workplace Peace Harmony Yes---No----

18 Is union necessary for workers in the organization Yes--------No-------

19 Do unions remain in mutual conflict if more than one Yes--------No-------

20 Are unions weak with compared to past Yes--------No-------

280

Appendix G-3

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3

Name of Company Institution ------------------------------------ Public Private

Name of Official (optional) -----------------------------------------------------------------

Designation---------------------------Service Length ----------------------------------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

UNION INFORMATIOM

No of Unions in Institutionhelliphellip Do you deal with registered Union unions--------

1 Is there any workersrsquo Wage Increase due to Unionrsquos efforts Yes-------No----

If yes how much------------------------------- In percentage----------------------

Increased how many times-------------------------After how long interval------------

2- Did union exert efforts for any Frinde benefit of workers like bonus Yes--

-----No-------

If yes how much amount---------------------- How many times a year------------

3- Did union demand for workers Job security -------Yes-----------No---------

281

4- What are workers duty timings

Arrival time----------------------------------Break--------------------- Leaving time ----

Total hours --------- Daily -----------Weekly---------Weekly working days--------

Did union demand for reduction in workers job hours---------------------------

If yes then how much time reduced------per day-----------------per week-------------

5- Did union demands to increase workersrsquo Leave ---- Yes------- No-------

6- Did union exert efforts for payment of overtime for workers ndashYes ----No ---

7- Did union demand to improve working conditions ---Yes---- No-------

8- For health of workers did union demand Yes---- No-------

xi- Arranged to establish a hospital--------------------------------------------

xii- Arranged medical Allowance of Amount--------------------------------

xiii- Treatment arrangements for family-------------------------------------

xiv- Treatment arrangements for parents ---------------------------------------

xv- Any other--------------------------------------------------------------------------

9- For Education of Workers Children did union demand to ----------------

xi- Establish School -----------------------------------------------------------------

xii- Arrange scholarship---------------------------------------------------------------

xiii- Arrange transport for school----------------------------------------------------

xiv- Provide Education Allowance---------------------------------------------------

xv- Any other Arrangement--------------------------------------------------------

Yes---- No-------

10- Did union demand for Post Retirement Benefits of Workers----------------

vii- Arranged pension facility---------------------------------------------------------

282

viii- Increase of pension amount--------------------------------------------------------

ix- Any other-----------------------------------------------------------------------------

Yes---- No-------

11- Did union demand to arrange any recreational facilities for workers---------

Yes---- No-------

12 Did union demand for any training of workers ------------------------------

Any Comment

13- Did union try to decrease Wagesalary difference of officers and workers----

Yes -----No -----

14- 15- Did union inform the workers about Rights as worker Yes-------No-------

15- Did union Demand for workers Education Facility Yes-------No--------

-----------------------------------------------------------------------------------------------------

16- Did union exert efforts to increase workers productivityefficiency

Yes-------No--------

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

Any Comment-

17- Did union exert efforts to improve workplace Peace Harmony

Yes-------No--------

How-------------------------------------------------------------------------------------

283

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

18 Is there work council in the organization Yes-------No----

----------------------------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20 Did Union CBA accept any time wage cut for Firm benefit Yes -----No-----

Any comment

------------------------------------------------------------------------------------------------------------

284

Appendix G-4

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR TEMPORARY WORKERS-4

Name of Company Institution ------------------------------------ Public Private

Designation---------------------------Service Length -------Age-----------Education--------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

Question- 1 Does your Wage Increase regularly YES---No--

If increase how much -----------in percentage ---------------

Question- 2 Do you have Job Security YES----No--

Question- 3 What are your Daily Working Hours -----------

Question- 4 Are your Working Conditions ndashwell ----- YES----No--

Question- 5 Do you avail Children Education facility YES----No--

Question- 6 Do you avail HealthTreatment facility YES----No--

Question- 7 Do you have Financial Benefit like bonus YES----No--

Question- 8 Do you have Miscellaneous Benefit (petty Allowance)

YES----No--

Question- 9 How many Yearly leaves Do you have ---------------

Question- 10 Is there any contribution of union in providing these

facilities to you YES----No--

285

Appendix H-1

GLOSSARY

DEFINITIONS OF TERMS OF RESEARCH TITLE

Terms used in research title are defined below

HUMAN RESOURCE DEVELOPMENT (HRD)

Rao (1995 p 26) extracted from UNDP following definition

ldquoHRD implies many facets of development of people including their physical

intellectual emotional political spiritual and all other forms of developmentrdquo

INDUSTRIAL RELATIONS

ldquoThe field of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union Governments set

the framework for labor relations through legislation and regulationrdquo (Wikipedia-a)

LABOR UNIONS

According to lsquoWorld Labor Report 1997-1998rsquo of ILO The Australian Bureau of

Statistics has defined unions as

ldquoAn organization consisting predominantly of employees the principle activities of

which include the negotiation of pay and conditions of employment for its membersrdquo

httpwwwiloorgpublicenglishdialogueifpdialpublwlr97annexnoteshtm

ORGANIZATIONAL CLIMATE

Burton et al (2004) defined Organizational climate as

ldquoOrganizational climate is the attitude of the individuals concerning the

organizationmdashits degree of trust conflict morale rewards equity leader credibility

resistance to change and scapegoating as seen by the individualsrdquo

286

For this research it means with in the organization and not beyond organization on

social or political forums not being a subsidiary of any political party

PAKISTANrsquoS PERSPECTIVE

In Pakistanrsquos industrial relations system all the permanent workers may be member of

any CBA union or other unions or non members but permanent employees of the

organization are equally benefited from collective bargaining Further more in Pakistan there

is its own Perspective for Collective Bargaining Shafiq-ur-Rehman (2003) expressed that

collective bargaining in Pakistan instead of the issue of wage rise typically covers a much

wider range of issues including pecuniary terms of employment (such as non statutory

allowances and benefits) and non pecuniary conditions of employment including job security

and working conditions (such as safety of work place and methods of production)

  • 01 Titledoc
  • 02 Front Matterdoc
    • TABLE OF CONTENTS
    • Page
    • 1 INTRODUCTION 1
      • 2 LITERATURE REVIEW 7
        • 221 Emergence of Labor Unions 12
          • 223 Why Workers Join Unions 17
          • 23 UNIONS ROLE FOR WORKERS BENEFITS 19
          • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39
          • 241 Productivity Efficiency and Profitability 39
          • 242 Work Place Harmony and Cooperative Role 46
            • 25 STRATEGIES AND TACTICS OF UNIONS 50
              • 251 Source of Strength of Unions 50
                • 2511 Unionsrsquo Density and Their Strength to Effect 50
                • 252 Peaceful Means of Achieving Objectives 51
                  • 26 CORRUPTION OF UNIONS 53
                  • 261 Corruption and Selfishness of Officials 53
                    • 264 Bribes (Extortion and Pay-off) 58
                      • 31 HISTORY OF LEGISLATION 61
                        • 311 Laws Permitting Establishment of Unions 62
                          • 312 Laws for Settlement of Disputes 64
                          • 322 ILO Conventions 67
                            • 4 RESEARCH METHODOLOGY 84
                            • 42 POPULATION AND SAMPLING 91
                            • 321 Stage-lsquoIrsquo Sampling of Organizations 91
                              • 422 Stage-lsquoIIrsquo Sampling of Respondents 92
                              • 4221 Sampling of Union Office Bearers 92
                              • 4222 Sampling of Permanent (Unionized) workers 93
                              • 4223 Sampling of Management 93
                                • 43 DATA COLLECTION INSTRUMENTS 93
                                  • 431 Questionnaires and Their Structure 93
                                    • 44 PREPARATION OF SATISFACTION LEVEL SCALE 97
                                      • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103
                                        • BENEFITS
                                        • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105
                                        • 51 DATA PRESENTATION 106
                                          • 521 Organizational Means of Workersrsquo Variables 111
                                          • 522 Organizational Means of Managementrsquos Variables 122
                                            • 532 Chi Square Test Application 166
                                            • 533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182
                                              • 6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195
                                              • 63 CONCLUSIONS 209
                                              • 64 SUGGESTIONS AND RECOMMENDATIONS 210
                                              • 65 SUGGESTIONS FOR FURTHER RESEARCH 212
                                              • REFERENCES 213
                                              • APPENDICES 229
                                              • LIST OF TABLES
                                              • Table Page
                                              • 1 Responses of Workers of ARL Organizational Mean Calculation) 112
                                                • 2 Responses of Workers of CDA (Organizational Mean Calculation) 113
                                                  • 3 Responses of Workers of IESCO (Organizational Mean Calculation) 114
                                                    • 4 Responses of Workers of KTM (Organizational Mean Calculation) 115
                                                      • 7 Responses of workers of PTCL (Organizational Mean Calculation) 118
                                                      • 8 Responses of workers of PTV (Organizational Mean Calculation) 119
                                                      • 9 Responses of workers of SNGPL (Organizational Mean Calculation) 120
                                                      • 11 Responses of Management of ARL 122
                                                          • 12 Responses of Management of CDA 123
                                                            • 18 Responses of Management of PTV 129
                                                            • 39 Chi square calculations - Security (Jsec) 169
                                                              • 40 Chi square calculation - Time reduction (Td) 170
                                                                  • 56 Facilities of Permanent Workers (Union Members) 191
                                                                      • 03 CHAP-1doc
                                                                        • CHAPTER 1
                                                                        • INTRODUCTION
                                                                          • 04 CHAP-2doc
                                                                            • CHAPTER 2
                                                                              • LITERATURE REVIEW
                                                                                • One reason of these hardships in the words of George (2004) is that a majority of working people possess labor as their only resource to carry on with their lives
                                                                                  • 221 Emergence of Labor Unions
                                                                                    • Aidt and Tzannatos (2001) asserted that the desirability of unions depends on many factors including (a) what unions do (b) how collective bargaining is organized and (c) the effectiveness of dispute resolution mechanisms
                                                                                      • 23 UNIONS ROLE FOR WORKERS BENEFITS
                                                                                        • Klaff and Ehrenberg (2003) using the data source of survey conducted in USA by the Association of Higher Education Facilities Officers 1997-1998 investigated that union coverage affected staff salaries at 163 US colleges and universities and estimated a union salary premium of 9- 11
                                                                                          • Similarly Anyemedu (2002) found that in Ghana government considers wage restraint as a means of attracting foreign investment Hence the government and employers have succeeded in installing the capacity to pay of employers as virtually the only factor to be taken into account in wage determination
                                                                                            • Labor unions also exert efforts for increasing equality and reducing discrimination in wages of workers
                                                                                              • This time reduction was prevailing everywhere at large extent as Aidt amp Tzannatos 2001) wrote that hours worked is lower among unionized than non-unionized workers This is true for both total and normal hours
                                                                                                • Unionsrsquo role in securing health safety and welfare benefits for employees has been found in following studies
                                                                                                  • Stiglitz (2000) admitted that unions have played role in Health and safety standards and had played also role in improvement of working conditions for workers
                                                                                                    • Unions also have an eye on the life of workers after the end of service For this they exert efforts either in the form of arranging employer contribution or launch their own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is shown in the several researches where unionized workers receive better pension options and opportunities
                                                                                                      • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY
                                                                                                        • The co-operative role of unions towards state employer and society by exerting efforts to increase productivity and efficiency has been studied by several researchers as quoted in following lines
                                                                                                          • 241 Productivity Efficiency and Profitability
                                                                                                          • 242 Work Place Harmony and Cooperative Role
                                                                                                            • Song (1999) wrote that South Korean unionrsquos struggled to promote worker compliance and commitment to firms and brought the employees back from street rallies into the workplace
                                                                                                              • 25 STRATEGIES AND TACTICS OF UNIONS
                                                                                                              • For the achievement of objectives of securing benefits for the workers and solution of their problems unions adopt peaceful and violent means and succeed when they have strength or fail in their struggle if they have no strength Numerous researches have highlighted it
                                                                                                                • Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos view large and centralized unions are more functional and influential than fragmented unions
                                                                                                                  • 251 Source of Strength of Unions
                                                                                                                    • 2511 Unionsrsquo density and their strength to effect
                                                                                                                    • 252 Peaceful Means of Achieving Objectives
                                                                                                                      • 26 CORRUPTION OF UNIONS
                                                                                                                      • Though unions exerted efforts for securing benefits gaining respect and building a fearless atmosphere for their workers but unionsrsquo history is also plagued by corruption which has been brought to light by following researches
                                                                                                                      • 261 Corruption and Selfishness of Officials
                                                                                                                      • For unions in Pakistan Khan (1992) expressed that the numerical increase of trade unions leads to personal rivalry of union leaders competing for command over small unions The trade unions leaders fight among themselves instead of fighting against management or government and every leader is status seeker caring more for his own prestige and image than to cause of common worker or unionism
                                                                                                                        • 264 Bribes (Extortion and Pay-off)
                                                                                                                          • 05 CHAP-3doc
                                                                                                                            • CHAPTER 3
                                                                                                                              • 31 HISTORY OF LEGISLATION
                                                                                                                                • 311 Laws Permitting Establishment of Unions
                                                                                                                                • 312 Laws for Settlement of Disputes
                                                                                                                                • 322 ILO Conventions
                                                                                                                                  • 06 CHAP-4doc
                                                                                                                                    • CHAPTER 4
                                                                                                                                    • RESEARCH METHODOLOGY
                                                                                                                                    • 42 POPULATION AND SAMPLING
                                                                                                                                    • 421 Stage-lsquoIrsquo Sampling of Organizations
                                                                                                                                    • 422 Stage-lsquoIIrsquo Sampling of Respondents
                                                                                                                                    • 4221 Sampling of union office bearers
                                                                                                                                    • 4222 Sampling of permanent (Unionized) workers
                                                                                                                                    • 4223 Sampling of management
                                                                                                                                      • 43 DATA COLLECTION INSTRUMENTS
                                                                                                                                        • 431 Questionnaires and their Structure
                                                                                                                                          • 44 PREPARATION OF SATISFACTION LEVEL SCALE
                                                                                                                                            • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS
                                                                                                                                              • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits
                                                                                                                                                  • 07 CHAP-5doc
                                                                                                                                                    • 51 DATA PRESENTATION
                                                                                                                                                    • 521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES
                                                                                                                                                    • Organization wise arithmetic means and percentages of all the organizations on the basis of the variables pertaining to workers have been calculated below in tables 1 to table 10
                                                                                                                                                    • Table-1 Responses of Workers of ARL Organizational Mean Calculation)
                                                                                                                                                      • Ced
                                                                                                                                                      • We
                                                                                                                                                        • Table 2 Responses of Workers of CDA (Organizational Mean Calculation)
                                                                                                                                                          • We
                                                                                                                                                          • Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)
                                                                                                                                                            • Linc
                                                                                                                                                              • We
                                                                                                                                                                • Table 4 Responses of Workers of KTM (Organizational Mean Calculation)
                                                                                                                                                                  • Jsec
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 7 Responses of workers of PTCL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 8 Responses of workers of PTV (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • 522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES
                                                                                                                                                                    • Organization wise arithmetic means of all the organizations on the basis of the two variables pertaining to management have been calculated below in tables 11 to table 20
                                                                                                                                                                    • Table 11 Responses of Management of ARL
                                                                                                                                                                      • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing that union of ARL is exerting efforts in exhorting workers to work for the interest of employer Therefore union is successful
                                                                                                                                                                          • Table 12 Responses of Management of CDA
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (KTM) = Σ Xi2 = 82 = 400
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (OGDC) = Σ Xi2 = 72 = 35
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                              • Table 18 Responses of Management of PTV
                                                                                                                                                                                • Organizational Mean (SNGPL) = ΣXi2 = 72 = 35
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                  • Variable Mean = Σ fXi 525 = 1856525 = 354
                                                                                                                                                                                  • Variable Mean = = Σ fXi 525 1730525 = 330
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 =1643 525 = 313
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 = 1582525 = 301
                                                                                                                                                                                      • We
                                                                                                                                                                                      • 331
                                                                                                                                                                                        • 532 CHI SQUARE TEST APLICATION
                                                                                                                                                                                            • Table 39 Chi square calculations ndash Job security (Jsec)
                                                                                                                                                                                              • Table 40 Chi square calculation - Time reduction (Td)
                                                                                                                                                                                                • 533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS
                                                                                                                                                                                                  • Variable Mean
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 3210 = 33
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 4010 = 4
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Total of Means
                                                                                                                                                                                                    • (Data from calculations of tables 52 amp 53
                                                                                                                                                                                                      • By putting the values of means of columns in the equation
                                                                                                                                                                                                      • Combine Mean = Σ i N = Se = (Pin + Wph)2
                                                                                                                                                                                                      • Se = (33 + 40)2 = 732
                                                                                                                                                                                                          • Table 56 Facilities of Permanent Workers (Union Members)
                                                                                                                                                                                                            • ARL
                                                                                                                                                                                                              • 08 CHAP-6doc
                                                                                                                                                                                                                • DISCUSSION CONCLUSION AND RECOMMENDATIONS
                                                                                                                                                                                                                • 64 SUGGESTIONS AND RECOMMENDATIONS
                                                                                                                                                                                                                • 65 SUGGESTIONS FOR FURTHER RESEARCH
                                                                                                                                                                                                                  • 09 Reference amp Appendicesdoc
                                                                                                                                                                                                                    • Appendix A-1
                                                                                                                                                                                                                    • Appendix A-3
                                                                                                                                                                                                                    • Workers by Designation of IESCO
                                                                                                                                                                                                                    • Appendix A-4
                                                                                                                                                                                                                    • Workers by Designation PTV
                                                                                                                                                                                                                    • Appendix A-9
                                                                                                                                                                                                                    • Workers by Designation of SNGPL
                                                                                                                                                                                                                    • Workers by Designation of ZTBL
                                                                                                                                                                                                                    • Appendix A-11
                                                                                                                                                                                                                    • Representatives of Unions and Employers Interviewed
                                                                                                                                                                                                                    • Appendix - B-1
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed ARL
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed CDA
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed IESCO
                                                                                                                                                                                                                      • Appendix - B-4
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed KTM
                                                                                                                                                                                                                      • Appendix B-5
                                                                                                                                                                                                                        • Workers by EstablishmentPlace of Posting Interviewed OGDCL
                                                                                                                                                                                                                          • Workers by EstablishmentPlace of Posting Interviewed PCP
                                                                                                                                                                                                                            • Workers by EstablishmentPlace of Posting Interviewed PTCL
                                                                                                                                                                                                                              • Workers by EstablishmentPlace of Posting Interviewed PTV
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed SNGPL
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed ZTBL
                                                                                                                                                                                                                                  • Financial Benefits of Workers (by Unionsrsquo Efforts)
                                                                                                                                                                                                                                  • Non Financial Facilities of Workers (by Union Efforts)
                                                                                                                                                                                                                                    • Abbreviation
                                                                                                                                                                                                                                      • Explanation
                                                                                                                                                                                                                                      • FREQ or Freq
                                                                                                                                                                                                                                      • Frequency
                                                                                                                                                                                                                                      • IND
                                                                                                                                                                                                                                      • Indifferent
                                                                                                                                                                                                                                      • ORG
                                                                                                                                                                                                                                      • Organization
                                                                                                                                                                                                                                      • RES
                                                                                                                                                                                                                                      • Respondents
                                                                                                                                                                                                                                      • S
                                                                                                                                                                                                                                      • Satisfied
                                                                                                                                                                                                                                      • US
                                                                                                                                                                                                                                      • Un-satisfied
                                                                                                                                                                                                                                      • UN
                                                                                                                                                                                                                                      • Union
                                                                                                                                                                                                                                      • VAR
                                                                                                                                                                                                                                      • Variables
                                                                                                                                                                                                                                      • VS
                                                                                                                                                                                                                                      • Very Satisfied
                                                                                                                                                                                                                                      • VUS
                                                                                                                                                                                                                                      • Very Un-satisfied
                                                                                                                                                                                                                                      • WT or Wt
                                                                                                                                                                                                                                      • Weight or weighted
                                                                                                                                                                                                                                      • Y
                                                                                                                                                                                                                                      • YES
                                                                                                                                                                                                                                      • N
                                                                                                                                                                                                                                      • NO
                                                                                                                                                                                                                                      • Σ
                                                                                                                                                                                                                                      • Sum Total
                                                                                                                                                                                                                                        • Name of Variable
                                                                                                                                                                                                                                          • Workers Education
                                                                                                                                                                                                                                          • We
                                                                                                                                                                                                                                          • Appendix ndash F-1
                                                                                                                                                                                                                                          • Responses of Union Workers and Management of ARL
                                                                                                                                                                                                                                              • Top
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Appendix ndash F-2
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of CDA
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of IESCO
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                  • Responses of Union Workers and Management of KTM
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTCL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTV
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of SNGPL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Essentiality of Unions Inter Unions Relations and
                                                                                                                                                                                                                                                    • (Questionnaire-1 Question 18amp 19)
                                                                                                                                                                                                                                                    • About Work Council and Unionistsrsquo Training
                                                                                                                                                                                                                                                    • About Charter of Demand and Wage Cut
                                                                                                                                                                                                                                                        • Appendix G-1
                                                                                                                                                                                                                                                        • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                        • PERSONAL INFORMATION
                                                                                                                                                                                                                                                          • If yes how much amount-------------------------- How many times a year-------------------
                                                                                                                                                                                                                                                          • How---------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • Appendix G-2
                                                                                                                                                                                                                                                              • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR WORKERS-2
                                                                                                                                                                                                                                                                  • Personal Data
                                                                                                                                                                                                                                                                    • If yes then how-------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                      • Appendix G-3
                                                                                                                                                                                                                                                                      • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                      • QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3
                                                                                                                                                                                                                                                                        • UNION INFORMATIOM
                                                                                                                                                                                                                                                                          • 3- Did union demand for workers Job security -------Yes-----------No---------
                                                                                                                                                                                                                                                                            • 18 Is there work council in the organization Yes-------No----
                                                                                                                                                                                                                                                                                • Appendix G-4
                                                                                                                                                                                                                                                                                • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR TEMPORARY WORKERS-4
                                                                                                                                                                                                                                                                                  • PAKISTANrsquoS PERSPECTIVE

iv

ABSTRACT

Dissertation Title Industrial Relations Role of Labor Unions in Organizational

Climate in Pakistans Perspective

Purpose of this research was to explore the aspects of HRD beyond education and

training and to explore the role of labor unions in HRD by looking at the improvement in

productivity and harmony at work place due to them For this purpose survey

questionnaires on five point Likert scale ranging from very unsatisfied to very satisfied

were designed and pre-tested The study was carried out by taking a sample of 10

unionized organizations In these organizations 525 unionized workers 90 temporary

non-unionized workers and employers were interviewed to collect information on role of

labor unions in securing benefits for workers and motivating them for higher productivity

and peace at work place Performance of unions was estimated in two aspects One

aspect was their success in securing benefits for workers and other was in protecting the

interest of employers The success of unionsrsquo in exerting efforts for securing benefits for

workers was measured by satisfaction of workers which was dependent on15 variables

ie wage rise fringe benefits job security time decrease health facilities children

education over time payment working conditions leaves increase post retirement

benefits recreation facilities training opportunities decrease of wage differences

informing workers about their rights and workersrsquo education The success of unionsrsquo in

exerting efforts for protecting employersrsquo interest was measured by satisfaction of

employers which was dependent on two variables ie productivity increase and work

place harmony The results of the study show that unions proved successful in securing

benefits for workers and protecting the interest of employers though performance of

unions needs to be improved by exerting more efforts

v

TABLE OF CONTENTS

Page Inner title page i

Dissertation and Defense approval form ii

Candidate Declaration Form iii

Abstract iv

Table of Contents v

List of Figure xi

List of Tables xiii

List of Acronyms xvi

Acknowledgements xix

1 INTRODUCTION 1

11 BACKGROUND OF STUDY OF HUMAN RESOURCE 1

DEVELOPMENT

12 EXISTING PROBLEM 2

13 PURPOSE OF RESEARCH 4

14 RESEARCH QUESTIONS 4

15 SIGNIFICANCE OF THE RESEARCH 6

16 LIMITATIONS OF RESEARCH 6

2 LITERATURE REVIEW 7

21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT 7

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS 10

221 Emergence of Labor Unions 12

222 Unionization Problem 12

2221 Opposition of Unionization by State 13

2222 Opposition of Unionization by Employer 16

223 Why Workers Join Unions 17

23 UNIONS ROLE FOR WORKERS BENEFITS 19

231 Wage Rise 21

vi

232 Reduction in Wage Inequality 24

233 Fringe Benefits 25

234 Job Security and Employment 26

235 Time Reduction (Duty Hours) 28

236 Payment of Over Time 29

237 Paid Leaves 29

238 Working Condition 30

239 Health Care and Social Security 31

2310 Post Retirement Benefits (Pensions) 33

2311 Training Opportunities 34

2312 Workersrsquo Education 36

2313 Recreational and Social Services 37

2314 Children Education 39

2315 Workers Awareness 39

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39

241 Productivity Efficiency and Profitability 39

242 Work Place Harmony and Cooperative Role 46

25 STRATEGIES AND TACTICS OF UNIONS 50

251 Source of Strength of Unions 50

2511 Unionsrsquo Density and Their Strength to Effect 50

252 Peaceful Means of Achieving Objectives 51

253 Violent Means 52

26 CORRUPTION OF UNIONS 53

261 Corruption and Selfishness of Officials 53

262 Financial Corruption 53

2621 Embezzlement Examples 56

263 Unionsrsquo Officers Monopoly 57

264 Bribes (Extortion and Pay-off) 58

265 Sound Labour Relations at the Workplace no Important 59

Concern of Employers and Unions

vii

3 HISTORY AND LEGAL FRAME WORK OF UNIONIZATION 60

IN PAKISTAN

31 HISTORY OF LEGISLATION 61

311 Laws Permitting Establishment of Unions 62

312 Laws for Settlement of Disputes 64

313 Industrial Relations Ordinance 1969 64

32 RIGHT OF UNIONIZATION 66

321 United Nationsrsquo Declaration of Human Rights 66

322 ILO Conventions 67

323 Constitution of Pakistan 67

33 PRESENT ENFORCED LAWS 68

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo 68

332 Labor Laws Granting Rights 72

3321 Workmen Compensation Act 1923 72

3322 Factories Act 1934 72

3323 Payment of Wages Act 1936 73

3324 The minimum Wages Ordinance 1961 73

3325 Social Security Ordinance 1965 73

3326 The industrial and commercial Employment (standing

order) Ordinance 1968 74

3327 The companies Profit (workersrsquo participation)

Act 1968 74

3328 The Shops and Establishments Ordinance 1969 74

3329 The Minimum Wages for Unskilled Workers 74

Ordinance 1969

33210 Workers Welfare fund Ordinance 1971 75

33211 Workers Children (Eucation) Ordinance 1972 75

33212 Employees Cost of Living (Relief) Act 1973 75

33213 Employees Old Age Benefit Act 1976 76

333 Labor Policies 76

3331 First Policy (1955) 76

viii

3332 Second Policy (1959) 77

3333 Third Policy (1969) 77

3334 Fourth Policy (1972) 78

3335 Fifth Policy (2002) 79

3336 Labor Protection Policy 2005 81

3337 Labor Inspection Policy 2006 82

4 RESEARCH METHODOLOGY 84

41 THEORETICAL FRAME WORK 84

411 Research Model and Variable Formation 84

412 Research Hypotheses 91

42 POPULATION AND SAMPLING 91

321 Stage-lsquoIrsquo Sampling of Organizations 91

422 Stage-lsquoIIrsquo Sampling of Respondents 92

4221 Sampling of Union Office Bearers 92

4222 Sampling of Permanent (Unionized) workers 93

4223 Sampling of Management 93

4224 Sampling of Temporary (Non-unionized) Workers 93

43 DATA COLLECTION INSTRUMENTS 93

431 Questionnaires and Their Structure 93

44 PREPARATION OF SATISFACTION LEVEL SCALE 97

45 PILOT STUDY 97

46 CODES AND ABBREVIATIONS 97

47 STATISTICAL METHODS APPLIED 98

471 Percentage 98

472 Arithmetic Mean 98

473 Chi Square (χ2) 100

474 Comparison 101

48 CALCULATIONS BY APPLYING STATISTICAL METHODS 101

481 Percentage Calculation of Yes No Responses 101

482 Means Calculations 101

483 Chi Square Applications 103

ix

484 Comparison Application 103

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103

BENEFITS

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105

5 DATA ANALYSIS AND RESULTS 106

51 DATA PRESENTATION 106

511 Organization-Wise Description of Respondents 106

5111 Description of respondents of ARL 107

5112 Description of respondents of CDA 107

5113 Description of respondents of IESCO 107

5114 Description of respondents of KTM 108

5115 Description of respondents of OGDCL 108

5116 Description of respondents of PCP 108

5117 Description of respondents of PTCL 108

5118 Description of respondents of PTV 109

5119 Description of respondents of SNGPL 109

51110 Description of respondents of ZTBL 109

51111 Workers responses of the questions about essentiality

inter unions relations and unions status as compared 109

to past

51112 Unionsrsquo office bearersrsquo responses of the questions 110

about work council charter of demand and unionistsrsquo

training

51113 Management responses about work council charter 110

of demand and wage cut

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA 110

521 Organizational Means of Workersrsquo Variables 111

522 Organizational Means of Managementrsquos Variables 122

53 VARIABLE-WISE ANALYSIS 132

531 Mean Calculation of Variables Measuring Unionsrsquo Efforts 133

for Workersrsquo Benefits

x

5311 Combined Mean of All Workers Variables 163

532 Chi Square Test Application 166

533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED 190

WORKERS

56 WORKERS RESPONSES FOR QUESTIONS ABOUT

ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS 193

STATUS AS COMPARED TO PAST

6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195

61 DISCUSSION 195

611 Organization-Wise Performance of Unions 195

6111 ARL Union 195

6112 CDA Union 196

6113 IESCO Union 196

6114 KTM Union 196

6115 OGDC Union 197

6116 PCP Union 197

6117 PTCL Union 198

6118 PTV Union 198

6119 SNGPL Union 198

61110 ZTBL Union 199

612 Variable-Wise Performance of Unions 199

6121 Workers relating variables 200

6122 Employer relating variables 204

613 Comparison with Non-Unionized Workers 205

62 ANSWERS OF RESEARCH QUESTIONS 207

63 CONCLUSIONS 209

64 SUGGESTIONS AND RECOMMENDATIONS 210

65 SUGGESTIONS FOR FURTHER RESEARCH 212

REFERENCES 213

APPENDICES 229

xi

LIST OF FIGURES Figure No Page 1 Showing sequence of variables effect 84 2 Pie Diagram - Satisfaction Level of Workers on Wage 134

3 Pie Diagram - Satisfaction Level of Workers Financial Benefits 136

4 Pie Diagram - Satisfaction Level of Workers on Job Security 138

5 Pie Diagram - Satisfaction Level of Workers on Time Reduction 140

6 Pie Diagram - Satisfaction Level of Workers on Health Facilities 142

7 Pie Diagram - Satisfaction Level of Workers on Children Educat 144

8 Pie Diagram - Satisfaction Level of Workers on Overtime Pay 146

9 Pie Diagram - Satisfaction Level of Workers on Working Cond 148

10 Pie Diagram - Satisfaction Level of Workers on Leave Facilities 150

11 Pie Diagram - Satisfaction Level of Workers on Post Retire Bfts 152

12 Pie Diagram - Satisfaction Level of Workers on Recreation Fac 154

13 Pie Diagram - Satisfaction Level of Workers on Training Oppor 156

14 Pie Diagram - Satisfaction Level of Workers on Dec Wage Diff 158

15 Pie Diagram - Satisfaction Level of Workers on informing Right 160

16 Pie Diagram - Satisfaction Level of Workers on Workers Educat 162

17a Diagrammatic Presentation of Means of Workers Variables 165

(Bar Diagram)

xii

17b Diagrammatic Presentation of Means of Workers Variables 165

(Line Graph)

18 Pie Diagram - Satisfaction Level of Employers on Productivity 184

Efficienc Increase

19 Pie Diagram - Satisfaction Level of Employers on Workplace 184

Harmony

20a Diagrammatic Presentation of Means of Employers Variables 188

(Bar Diagram)

20b Diagrammatic Presentation of Means of Employers Variables 188

(Line Graph)

21 Diagrammatic Presentation of success of unions 189

(Success Matrix)

xiii

LIST OF TABLES

Table Page

1 Responses of Workers of ARL Organizational Mean Calculation) 112

2 Responses of Workers of CDA (Organizational Mean Calculation) 113

3 Responses of Workers of IESCO (Organizational Mean Calculation) 114

4 Responses of Workers of KTM (Organizational Mean Calculation) 115

5 Responses of Workers of OGDCL (Organizational Mean Calculation) 116

6 Responses of workers of PCP (Organizational Mean Calculation) 117

7 Responses of workers of PTCL (Organizational Mean Calculation) 118

8 Responses of workers of PTV (Organizational Mean Calculation) 119

9 Responses of workers of SNGPL (Organizational Mean Calculation) 120

10 Responses of workers of ZTBL (Organizational Mean Calculation) 121

11 Responses of Management of ARL 122

12 Responses of Management of CDA 123

13 Responses of Management of IESCO 124

14 Responses of Management of KTM 125

15 Responses of Management of OGDC 126

16 Responses of Management of PCP 127

17 Responses of Management of PTCL 128

18 Responses of Management of PTV 129

19 Responses of Management of SNGPL 130

20 Responses of Management of ZTBL 131

21 Mean calculations-wage rise (Wris) 133

22 Mean Calculations - Bonus (Financial Benefits) (Fbft) 135

23 Mean Calculations - Job Security (J-sec) 137

24 Mean Calculations - Time Reduction (Td) 139

25 Mean Calculations - Health Facilities (Hfac) 141

xiv

26 Mean calculations- Children Education (Ced) 143

27 Mean Calculations - Over Time Payment (Ot) 145

28 Mean Calculations - working conditions (Wcon) 147

29 Mean Calculations- leaves facility (Linc) 147

30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb) 151

31 Mean Calculations -Recreation facilities (Rfac) 153

32 Mean Calculations - training opportunities (Top) 155

33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) 157

34 Mean calculations - informing about rights (Ir) 159

35 Mean calculations - workersrsquo education (We) 161

36 Summary of means of workers variables and calculation of combined 163

mean

37 Chi square calculations wage rise (Wris) 167

38 Chi square calculations - Bonus (financial benefits) (Fbft) 168

39 Chi square calculations - Security (Jsec) 169

40 Chi square calculation - Time reduction (Td) 170

41 Chi square calculations - Health facilities (Hfac) 171

42 Chi square calculations - Children education (Ced) 172

43 Chi square calculations - Overtime payment (Ot) 173

44 Chi square calculations - Working conditions (Wcon) 174

45 Chi square calculations - Leaves facility (Linc) 175

46 Chi square calculations - Post retirement benefits facility (Prb) 176

47 Chi square calculations - Recreation facilities (Rfac) 177

48 Chi square calculations - Training facilities (Top) 178

49 Chi square calculationsndashDecreasing workers officers wage salary gap(Wdf)179

50 Chi square calculations - Informing about rights (Ir) 180

51 Chi square calculations - Workersrsquo education (We) 181

52 Calculation of mean of Management responses for unionsrsquo 183

efforts for Productivity Efficiency increase (Pin)

xv

53 Calculation of mean of Management Responses for

Workplace Harmony (Wph) 185

54 Calculation of Combined Mean of Management Responses (Se) 187

55 Facilities of Temporary Workers (Not Union Members) 190

56 Facilities of Permanent Workers (Union Members) 191

57 Essentiality Inter unions Relations and Unions status Compared to Past 193

xvi

LIST OF ACRONYMS

AFL-CIO- American Federation of Labor ndash Congress of Industrial Organizations

AFSCME- American Federation of State and County Municipal Employees

BEST- Basic Education and Skills Training

CBA ndash Collective bargaining Agent

CLR - Campaign for Labor Rights

CC OO-the Confederacion Sindical de Comisiones Obreras(Spain)

CFDT - Confederation Francaise Travail (Niger)

CNSS- National Social Security Scheme (Niger)

CNT- Confederation Nigeacuterienne du Travail

COSATU - Congress of South African Trade Unions

CO2- carbon dioxide

CROC- Revolutionary Confederation of Workers and Peasants (Mexico)

CSD- Commission on Sustainable Development (UNO)

DGTU- Director General of Trade Union (Malaysia)

ECEC ndash Employersrsquo Cost for Employeesrsquo Compensation

EPI- Economics Policy Institute

FAO- Food amp Agricultural Organization

FMLA- Family Medical Leave Act (USA)

xvii

HKDF- Hong Kong Democratic Federation

ILO- International Labor Organization

ITF -International Transport Workersrsquo Federation (ITF)

LDC ndash Lower Division Clerk

LIUNA- The Laborers International Union of North America (USA)

LO- Landsorganizationen i Sverige (Swedish Federation of Trade Unions)

LPL Laborers Political League

MNC- Multi National Corporation

NLRB- National Labor Relation Board (USA)

NMU - National Maritime Union

NTUC National Trade Unions Confederation (Singapore)

OECD- Organization for Economic Cooperation and Development

OSHA- Organizational Safety and Health Act (USA)

PSI- Public Services International

PWF- Pakistan Workersrsquo Federation

SDF- Study Development Fund (Singapore)

SRP ndash Skill Re-development Program (Singapore)

TUAC-Trade Union Advisory Committee to the OECD (TUAC)

TUC - Trade Union Congress

UDC - Upper Division Clerk

UGT- Union General de Trabajadores (SPAIN)

xviii

UI-Unemployment insurance

UK ndash United Kingdom

UNDP United Nations Development Program

UNEP- United Nations Environmental Program

USA ndash United States of America

USTN - Union des Syndicats des Travailleurs du Niger

WERS ndash Workplace Employee Relation Survey (USA)

WHO- World Health Organization

WISE- Workers Improvement through Secondary Education (Singapore)

WRTP Wisconsin Regional Training Partnership

WTO- World Trade Organization

xix

ACKNOWLEDGEMENTS

All glory and praise to God Almighty Who bestowed his blessing upon me in my

life and now enabled me to accomplish this research work

I am greatly indebted to my honorable supervisor Dr Zafar Mueen Nasir Chief of

Research (PIDE) presently Director (Policies) Policy Planning Cell Labor and

Manpower Division Ministry of Labor Manpower and Overseas Pakistanis Government

of Pakistan whose encouraging kind valuable and timely guidance enabled me to

complete this study

I feel pleasure to place record of my deep sense of thankfulness to Professor Dr

Rasheed Ahmed Khan Dean Faculty of Management Sciences and Prof Dr Allah

Bakhsh Dean Faculty of Education National University of Modern Languages Islamabad

Prof Dr Sarfraz Ahmed Mian Chairman Department of Economics University of Arid

Agriculture Rawalpindi Prof Dr Irshad Ahmed Department of Statistics Allama Iqbal

Open University Islamabad and Dr Khalid Masud Visiting Faculty Member Allama

Iqbal Open University Islamabad for their guidance in this research

I am heavily indebted to my family for the time they sacrificed for me during my

studies Their constant support and encouragement helped me to complete this difficult

task

No acknowledgement could even adequately express the thankfulness to my

friends who have always been encouraging me for educational achievements

At the end I pay thanks to all those who were directly or indirectly involved in the

completion of my thesis

CHAPTER 1

INTRODUCTION

When planning for one year theres nothing better than planting grain when

planning for ten years theres nothing better than planting trees when

planning for a lifetime theres nothing better than planting men

Chinese philosopher Guanzi (551 - 479 BC)

11 BACKGROUND OF STUDY OF HUMAN RESOURCE DEVELOPMENT

Human Resource Development is an important discipline of present time It is

considered by scholars of Business Administration as a sub discipline of Human

Resource Management (HRM) concerned with developing productive skills by

imparting them training Werner and DeSimone (2006 p5) defined Human Resource

Development (HRD) as ldquoa set of systematic and planned activities designed by an

organization to provide its members with the opportunities to learn necessary skills to

meet current and future job demandsrdquo Werner and DeSimone (2006) described HRD

as a function of HRM According to Rao (1995) the scope of HRD is extended at one

side to developing competencies of human resource by enhancing knowledge

building skill changing attitude and teaching values and at other side creation of

conditions through public policy programs and other interventions to help people to

apply these competencies for their own and othersrsquo benefits and making things

happen Bacchus (1992) asserted that the ultimate goal of HRD in any country is lsquoto

improve the quality of life of all itrsquos people and not merely concerned with providing

necessary skills to individuals The concept of HRD deals with many facets of

development of individuals including their physical intellectual emotional political

and spiritual aspects

People earn their food and living by working and engage themselves in

productive activities for which a combination of both physical and intellectual

2

development is important Physical development comes from good nourishment and

medical care Intellectual development comes through the process of education and

socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life Thus all aspects of development are integral part

of HRD According to Rao (1995) ultimately what is important is human satisfaction

and the quality of life Developing people is the essence of any HRD effort and it is an

important goal of all other development activities (plans policies programs

establishment of new structures mechanism) All forms of development (economic

technological ecological agricultural industrial etc) are ultimately meant to serve

people in terms of improving their happiness through better quality and standards of

life

The focus of the present study is on improvement of quality of life of workers

due to unionrsquos active role in negotiating higher wages and good working conditions

for them because workers of any organization have weak bargaining power as

employees without their collective representation by a labor union Labor unions exert

their pressure to convince or compel the employer to extend financial benefits ie

good wages bonuses and allowances and non financial benefits ie health facilities

better working conditions recreation facilities training opportunities job security

facilities for education reasonable daily working hours and paid leaves

These facilities improve the living conditions of workers who in turn exert

more efforts to enhance their productivity and profit of the organization

12 EXISTING PROBLEM

Presently in Pakistan the supply of labor is more than its demand causing

unemployment in the country The unemployment rate in Pakistan is estimated as 53

percent in 2006 -07 (LFS 2007) Due to surplus supply of labor its price (wagesalary)

3

is low Government has raised minimum wage recently to Rs 6000- per month which

was only Rs 4600- per month

With this limited income workers can not meet their needs making them

healthy and motivated to work efficiently and dedicatedly Management builds the

skills of workers by training to increase their performance and efficiency but even if

workers are skillful and well trained their performance may not be up to mark of

satisfaction until they are not physically healthy mentally satisfied and motivated or

developed in HRD context But employers usually do not pay attention towards this or

do not desire to pay good remuneration or provide better atmosphere in the pretext of

higher labor cost Unions try to convince or compel the employer for better

remuneration and better atmosphere

If unions are playing a role by protecting the rights of workers and making

efforts to secure benefits for them then the membership of unions must increase but a

declining trend in membership of unions has been observed globally Freeman and

Medoff (1984) Hyman (1999) (Jose 2000) Hirsch and Schumacher (2000) Machin

(2000) Bryson (2001) Saavedra and Torero (2002) Ebbinghaus (2002) Knox (2004)

and Eisenbrey (2007)

The question is (1) why workers are not joining labor unions (2) Are unions

not protecting the rights of workers or exerting efforts for securing benefits for them

A few research studies have looked at the negative image of the labor unions

Ghayur (1996-a) has pointed out that quiet often labor unionism is seen as undesirable

intervention in the smooth functioning of organizations with out realizing the positive

contribution it could make towards industrial peace harmony and progress Employers

allege that labor unions only talk about workersrsquo rights and ignore their obligations

They believe that unions are largely responsible for low productivity and lower

production

4

13 PURPOSE OF RESEARCH

The purpose of this research is to answer three questions

1 Are unions protecting the rights of workers or exerting efforts for

securing benefits for them

2 Do labor unions play any role in promoting physical intellectual and

emotional development of workers and

3 Do unions put any effort to enhance the productivity of the workers and

improve peace at place of work

The effectiveness of trade unions in promoting HRD is determined by some of

the benefits workers receive due to unions Particularly the focus is on the role of

unions in

1 Securing financial benefits for workers in the form of wage rise

bonuses and other allowances

2 Securing non financial benefits for workers like health facilities

workersrsquo education better working conditions decrease in working

hours increase in annual leaves training opportunities etc

3 Giving the workers sense of awareness about their rights

4 Improving the productivity or efficiency of the employees

5 Making harmony at work place between the management and

employees and making efforts for a peaceful industrial atmosphere

14 RESEARCH QUESTIONS

1 To what extent the unions in Pakistan are effective in development of

HR by securing benefits for workers such as

i) Wage rise

ii) Fringe benefits like Bonus

5

iii) Job Security

iv) Time decrease or resistance against time increase

v) Health or Medical treatment facilities

vi) Education facility

vii) Overtime payment

viii) Better working conditions

ix) Leaves increase or resistance against leaves decrease

x) Post-retirement benefits like pension

xi) Arranging recreation facilities

xii) Training opportunities

xiii) Decreasing wages inequality

xiv) Informing workers about their rights

xv) Children education facility

2 To what extent the unions in Pakistan are effective in promoting

employersrsquo interest by developing HR by putting efforts in

i) Motivating workers for increasing productivity improving

efficiency

ii) Improving peace and harmony at workplace

The answers of these questions will determine the effectiveness of unions in

promoting Human Resource Development (HRD)

6

15 SIGNIFICANCE OF THE RESEARCH

The findings conclusions and recommendations of the study will be beneficial

for

1- Governmentrsquos labor policy maker to frame out workers friendly

policies

2- Employers while deciding workers benefits

3- Unions while demanding facilities for workers

4- Workers while making decision of electing their unionCBA

5- Industrial Relations researchers to search further in the matter

16 LIMITATIONS OF RESEARCH

The limitations of the study are

1 The sample covered in the study is only individuals of Rawalpindi Islamabad

and therefore the results can not be generalized to whole of Pakistan

2 The role of trade unions in promoting HRD is measured through employeersquos

benefits and that too is based on the responses of the workers which may

introduce biasness in the results

3 The scale used in the questionnaire for measuring performance of unions is

arbitrary and that too can introduce bias

CHAPTER 2

LITERATURE REVIEW

lsquoHealth and strength physical mental and moral are the basis of industrial wealth while conversely the chief importance of material wealth lies in the fact that when wisely used it increases the health and strength physical and mental and moral of human race

Alfred Marshall (1890) quoted in World Bank Report (1991) 21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE

DEVELOPMENT

The ultimate goal of human resource development is to improve the quality of

life of people The human resource development strategy is not merely providing

necessary skills and enabling workers to secure employment rather it encompasses all

those activities which lay the foundation for a fuller and more productive utilization of

the total human resources The concept of HRD implies physical intellectual

emotional political spiritual and all other facets of human development Food

nutrition and freedom from disease are important inputs which make people

productive members of a nation Physical development comes from good nourishment

and medical care Intellectual development comes through the process of education

and socialization Social development involves developing the ability to live as the

member of the society or a group and contribute to it at the same time deriving

benefits from it The need for existence of all human beings makes this development

imperative Political development ensures human dignity through freedom of

expression democratic participation and an opportunity to influence things that in turn

influence the individualrsquos living Moral and spiritual development is required to bring

order discipline and peace in the life and ensure his comfort Thus all forms of

development of people can be included in the definition of HRD Rao (1995) wrote

8

that HRD leads to human satisfaction and the quality of life which is the ultimate goal

Developing people is an important goal of all development activities (plans policies

programs establishment of new structures mechanism) These developments

(economic technological ecological agricultural industrial etc) are ultimately meant

to serve people in terms of improving their happiness through better quality and

standards of life

Human resource development holds the key for economic development by

enabling people to become more productive because economic development depends

upon level of industrial activity which is dependent upon the productivity of human

resource Productivity of human resource depends upon its competencies and

conditions (through public policy programs and other interventions to help the

people) to apply these competencies These conditions are Physical fitness and

motivation Fashoyin (1997) opined that the workers in competitive economic

environment become more important agent in mobilizing all factors of production

towards achievement of a competitive advantage But this is possible by motivated

workforce And motivation of the workforce to commit itself to work and maintain

uninterrupted and effective operations further depends on satisfaction of workers

Worker would be healthy when they are well nourished and physically fit and

motivated when they enjoy better quality and standard of life This would be achieved

when they would receive proper share in the production or development in the form of

increased income or financial benefits enabling them to purchase potent diet

comfortable working conditions proper working hours leave for leisure recreational

facilities and self respect

Rao (1995) is of the view that productivity is determined by the number of

hours of work and its intensity And undernourished or sick person can not work long

or properly Absence of medical facilities further reduces productivity Increased

expenditure on food to the extent it raises productivity can be termed as investment

Better diet housing and control of communicable diseases have raised the quality of

life everywhere

9

A World Bank (1991) study quoted a text of 1890 of Alfred Marshall who

wrote that lsquohealth and strength physical mental and moral are the basis of industrial

wealth while conversely the chief importance of material wealth lies in the fact that

when wisely used it increases the health and strength physical and mental and moral

of human race By conducting some studies World Bank (1991) in its report

concluded that better health and nutrition raise workersrsquo productivity decrease the

number of days they are ill and prolong their potential working lives In Sierra Leone

a 10 percent increase in calories in-take of farm workers consuming 1500 calories a

day raised their output by 5 percent Similar results have been found among Kenyan

road construction workers By reducing morbidity and debility the malaria eradication

program in Sri Lanka in the 1940s led to a ten percent rise in incomes A study of

Basta et al (1979) on the rubber plantation workers in Indonesia revealed that

treatment of anaemic workers with iron tablets for a period of 60 days resulted in an

increase in productivity by 15 to 20 percent and the per capita cost of these tablets was

$ 008 Levin (1986) found that out put increases by about 10 to 20 percent for every

10 percent rise in haemoglobin level

Rao (1995) mentioned study of Behrman and Deolalikar (1998) who came to

the conclusion that lsquoNutrientrsquo intake might affect productivity without altering

indicators of health status because nutrient changes may be transferred largely to

energy expenditure change including that are productivity related

World Bank (1991) concluded after analysis of household survey data from

nine countries suggesting that economic effects of illness may be substantial An

average adult worker in Peru might expect to be ill 45 days a month and misses about

one day of work as a result in Ghana the corresponding figures were 36 and 13

days In the United States workers aged between 18 and 44 miss on an average one

quarter of a dayrsquos work in a month

If workers are unsatisfied they will quit the organization Quah (1993)

analyzed the studies of human resource development in four countries ie Japan

Singapore South Korea and Taiwan and concluded that comprehensive reforms are

needed in public personnel management in the direction of attracting retaining

10

developing and utilizing competent employees Rao (1995) expressed that people will

be un-satisfied and lose motivation if not properly paid They will quit the

organizations causing increase of turnover and leading to increased expenditure of

selection recruitment and training

From the above discussion it is revealed that HRD is to develop competencies

of the people and improving their health and quality of life by providing them better

share in the income of country or any firm in the form of better salary and other

financial benefits (bonus health allowance education allowance recreation

allowance etc) boasting their motivation by reducing the remuneration gapes between

different categories of people providing them more leisure by reducing working

hours comforting their lives by bettering work places and developing socially by

giving them representation freedom of expression and satisfying them by providing

security of job and removing their fears

For expressing the importance of HRD Tan (1996) quoted the saying of a

Chinese philosopher Guanzi (551 - 479 BC) that

When planning for one year theres nothing better than planting grain

when planning for ten years theres nothing better than planting trees

when planning for a lifetime theres nothing better than planting men

In his own words Guanzi explained that grain is something that is planted once

and produces only a single harvest Trees are planted once but may produce ten

harvests Men are things that are planted once but may produce a hundred harvests

22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS

Workers or labor class is the major and most important human resource of any

country and they are developed through better quality and standards of life But

workers remained undeveloped because of being under privileged deprived and

victim of the exploitation of employer Khan (1992) mentioned that labor was

considered as a commodity and was subject to economic laws of supply and demand

11

Conditions of workers remained area of concern for centuries particularly after

the industrial revolution No doubt industrialization as a consequence of industrial

revolution was most forceful process in the known history that brought many

comforts in human life But it is a very bitter fact that this revolution also brought

problem of exploitation of workers who became enslaved to the dictates of machines

and capital owners under their profit motives According to Shafiq-ur-Rehman (2003)

employers exploited workers for maximizing profit Colman (2000) wrote about USA

that the industrial revolution for the first time brought thousands of women and

children in the workforce In New England textile mills used to employ young

unmarried daughters of farmers and these textile lsquomill girlsrsquo often worked 12 to 15

hours a day lived in strictly supervised company boarding houses had to be silent

during work and could be fired for using profane or improper language

Situation is still bad at some places and according to ICFTU (nd) report in

Guatemala in some factories workers usually work for 9-10 hour a day and paid

between $1 and $2 per day and sometimes they are forced to work as long as 18 hours

In some factories to meet the demand of large orders workers are given

amphetamines so that they can work 60 hours without stopping

Similarly Amnesty International (2002) also reported that in China the plight

of workers is serious and there are widespread violation of international standards

causing serious injuries and deaths

One reason of these hardships in the words of George (2004) is that a majority

of working people possess labor as their only resource to carry on with their lives

There was a need of a system encompassing institutions dedicated for the

protection of workers and solution of their problems as well as to maintain industrial

peace

Therefore institution appeared in the form of labor unions and system appeared

in the form of Industrial Relations

12

Industrial relations is a tripartite system having government employers and

labor unions as its three components The Wikipedia defines this as

ldquoField of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union

Governments set the framework for labor relations through legislation and

regulationrdquo (Wikipedia-a)

221 Emergence of Labor Unions

The exploitation of workers led them to unite for the solution of their problems

at a platform This platform was labor union In the words of Brohawn (nd) the union

was democratic societys original answer for addressing injustices at the workplace

which attended the birth of the Industrial Revolution In fact unionism was born to

bring social and economic justice for working people Ehrenberg and Smith (1985)

asserted that labor unions are the organizations whose primary objectives are to

improve the pecuniary and non pecuniary conditions of their members Workers

expected their unions to fight for their rights by organizing and financing strikes

According to Shafiq-ur-Rehman (2003) workers formed unions which had to adopt a

confrontational approach towards the employersAbout influence of unions Thomas

(1999) wrote that trade unions are a large organized group in civil society which

brings a unique contribution to the development of community because of direct

involvement with economic systems of production and distribution They also

influence the course and content of employment and social and economic policies

What were and still are the problem of union making are discussed in

following lines

222 Unionization Problem

Emergence of unions in every country and society was and is still a difficult

evolutionary process Literature has shown that organization of workers was not an

easy task and unions had to bear the wrath of state and employer and those whose

13

interests were against unionization Unionization is the democratic right which has

been acknowledged in UNO declaration of human rights and by ILO conventions

2221 Opposition of unionization by state

Rizvi (1973) a Pakistani author wrote that government is one of the important

parties in the industrial labor relations especially when there is high elasticity of

demand but low elasticity of supply of labour But what has been the role of

governments is narrated in lines below

Ghayur (1996-a) wrote about Pakistan that State has also erected barriers by

framing laws discouraging to unionization to maximum extent by imposing difficult

conditions to fulfill particularly in registration Government of Pakistan has

established Export processing Zone (EPZ) in Karachi which is exempted from the

application of certain labor laws especially the right to form a union and to go for a

strike Ghayur also wrote that in Pakistan unionization and collective bargaining is not

permitted to all public sector employees and activity has been brought under Essential

Services Act in many public sector organizations

According to report on lsquoHuman Development in South Asia (2003)rsquo in

Pakistan lsquothe Essential Services Management Act of 1952rsquo was the first hurdle in the

history of the unionization process of Pakistan It restricts the freedom of association

and collective bargaining rights of various groups of workers Employees of Pakistan

International Airlines (PIA) Pakistan Television Corporation and the Civil Aviation

Authority (CAA) as well as workers in postal teaching electric supply and radio

stations can form unions but cannot join a strike The workers in the EPZs are also

denied their trade union rights in Pakistan Export Processing Zones Authority

Ordinance (EPZAO) of 1980 and Export Processing Zone Rules (EPZR) of 1982

exempt the workers in EPZs from the provisions of IRO Workers in EPZs cannot

establish trade unions bargain collectively or organize a strike

Similarly Pakistani researchers Abbas and Hussain (2007) wrote about

Pakistan that a range of restrictions deter the activities and effectiveness of union

organizers One of such laws that restrict trade union activities is the Essential

14

Services Maintenance Act of 1952 (ESA) which includes government services and

State Owned Enterprises (SOEs) like power generation and transmission energy

production ports and the state-owned airline This law generally invoked to ban

strikes and is also used to hold back the right to collective bargaining

Human Rights Watch (1998) reported that in China making of independent

trade unions was illegal union makers were suppressed by the government and their

leaders were imprisoned There is one official union the All China Federation of

Trade Unions (ACFTU) which is under the control of the Communist Party which

appoints all union officials All workplace unions must be affiliated to the ACFTU

Amnesty International (2002) also reported that in China independent labor unions are

not permitted and All China Federation of Trade Unions (ACFTU) a government

controlled trade union is the only national body which governs trade unions activity

but workers had been struggling to create independent trade unions as an alternative to

the ACFTU since the late 1980s For example in May 1989 groups of workers in

various cities formed Workers Autonomous Federations (WAFs) but they were short-

lived and banned by the authorities and later in a crackdown on 4th June 1989

organizers were arrested and prosecuted on counter-revolutionary charges Since

1989 workers made other attempts to form independent trade union but they were

again jailed In 1994 workers who attempted to set up the League for the Protection of

the Rights of Working People (LPRWP) were arrested in Beijing

Bernard (1998) reported about USA that Supreme Court decisions rolled back

union and worker rights as well as amendments to labor law have restricted union

organizers while freeing management to penalize workers who attempted to exercise

their rights

UNDP (2000) in its report quoted that ICFTU in a Press Release dated 6998

reported that in 1997 nearly 300 trade unionists were killed for attempting to organize

labor unions 1681 were tortured or subject to physical mistreatment 2329 were

detained by police or military units and nearly 3500 were intimidated Press release

also alleged that even in United States an estimated 10 percent of workers

15

campaigning for unions are illegally fired 21427 workers lost their jobs in year 1998

for union activities

UNDP (2000) report further revealed that in developed countries despite the

force is not employed as frequently as in the third world many western nations still

have strong pro-corporate factions that have tried to render labor unions powerless

through legislative channels As Kremer and Olken (2001) expressed that even in

USA union formation is not so smooth and under Federal law covering most

industries if 30 of workers sign a petition calling for an election a certification

election supervised by the NLRB is held A union is recognized if more than half the

workers vote for it

Similarly Amnesty International USA (2005) reported that in Philippines

despite the government has ratified 22 of the International Labor Organizations (ILO)

conventions on labor standards including convention No 87 and No 98 the ILO has

received several complaints of non-compliance with these conventions Complaints

including instances of alleged extra-judicial execution of trade union leaders have also

been received

Even after union formation governments hamper the smooth functioning of

unions by different means DeSilva (1997) reported that South East Asian countries

took measures to restrict trade union actions and control unions as well as to avoid

union multiplicity However in some countries government has favored unionization

Government in Thailand for development of sound workplace labor relations

encouraged employers and employees and their organizations by initiating a program

Similarly in Japan workplace relations have been facilitated by the enterprise-union

system because many issues relating to competitiveness needed to be addressed at the

enterprise level and it has also been realized that competitiveness can be enhanced

through sound labor relations Nathanson and Associates (1999) wrote that in Israel to

avoid collective agreements the government as an employer is reducing the

proportion of permanent tenured employees and hiring more and more of its

employees through temporary manpower agencies in the public service and it is very

difficult to organize these temporary workers Waisgrais (2003) reported that in

16

Argentina attempt was made by the state to dismantle the trade union apparatus by

measures such as the suspension of all union activity the abolition of negotiations the

revocation of the right to strike and the removal of social work from the unionsrsquo

sphere of activity

2222 Opposition of unionization by employer

Employers in some countries lose no opportunity of exploiting the workers in

the form of paying low wages and other facilities but unions offer resistance and try

to protect rights of workers Employers put hurdles in the work of unions at the time

of union registration and defame the unions by charging that unions are corrupt It has

been elaborated in lines written below by quoting relative researches

Mills (1994) wrote that management has been hostile to unions during most of

American history American employers mostly opposed the growth of unions often

with the help of the law and the courts and in periods of conflicts federal and state

governments more frequently supported employers instead of unions

Brohawn (nd) expressed that unions are considered by most business

executives to be the kiss of death Small businesses in particular fear unions as an

outside force antagonistic to the interests of the company

Khan (1992) wrote about Pakistan that when worker gets job he becomes

reluctant to take part in unionrsquos affairs for fear of being victimized by management so

a common worker does not care to join a trade union So he concludes that in Pakistan

labor is still unorganized and has not been able to develop a sense of unity

Ghayur (1996-a) also analyzed that in Pakistan every effort was made in

private sector to resist union formation in private sector so if employer does not favor

the formation of union the matter can be prolonged for years Even foreign

companies resist as in Pakistan union of Korean Company (Daewoo) constructing

Motorway could not be registered despite of their best efforts Shafiq-ur-Rehman

(1973) pointed out unsatisfactory relationship between participants of industrial

relations in Pakistan and other developing countries and asserted that attitude of

17

employer is still very authoritative and paternalistic requiring a higher degree of

obedience and loyalty from their working force Their practical strategies have been to

insist on and claim all economic and non economic rights and for get about their

duties

Human Rights Watch (1998) also referred that South Korean companies

operating in Asia have been accused from all quarters of violating workers rights in

Vietnam China and Indonesia The Daewoo Construction Company did not allow the

free functioning of trade unions The case of the Daewoo Motorway Project in

Pakistan which began in 1991 where ten thousand employees were working on the

motorway between Lahore and Islamabad had been reported of use of violent physical

abuse against workers A complaint for this was lodged with the ILO

Employers are hampering the unionsrsquo activities in many ways as Hyman

(1999) expressed that Management always had hostile attitude towards unions In

some countries there has been a growing unwillingness by employers to accept trade

unions as collective representatives of employees while in other countries if collective

bargaining has survived its scope has been reduced and managements have

established new forms of direct communication with employees as individuals In a

report about Lithuania Dovydeniene 2002) wrote that employers strictly forbade their

employees to join unions and threatened to dismiss anyone who showed initiative or

took part in any union activity Workers threatened by unemployment had little

choice in the face of such exploitation

Bray et al (2005) asserted that according to AWIRS (Australian Workplace

Industrial Relations Survey) 1995 overall 88 of managers indicated a preference not

to deal with trade unions and only 7 of unionized workplaces believed that unions

effectively represented the interest of their members

223 Why Workers Join Unions

Bray et al (2005) wrote that people join unions because of dissatisfaction with

economic aspects of job a desire to influence those aspects of the work environment

18

through union-oriented means and a belief that the benefits of unionism outweigh the

expected costs

Holley jr et al (2001) expressed that employees join unions when they are

dissatisfied with physical characteristics of workplace low wages lack of benefits and

believe that unions will help them to achieve them job related conditions Like all

formal organizations unions also satisfy the membersrsquo need by providing means

enhancing a sense of identity and maintaining self-esteem They satisfy the workersrsquo

need of affiliation belonging and status that is at higher level than improved wages and

working conditions

Aidt and Tzannatos (2001) asserted that the desirability of unions depends on

many factors including (a) what unions do (b) how collective bargaining is

organized and (c) the effectiveness of dispute resolution mechanisms

According to Shafiq-ur-Rehman (2003) reasons behind workersrsquo joining

unions are lsquohigher wages and better working conditionsrsquo lsquojob securityrsquo lsquosocial needsrsquo

lsquoPeer groups pressurersquo and self fulfillment

Freeman (2007) analyzed that 70 of workers in 2005 believed that employers

fell short in providing regular cost-of-living raises to employees So workers tendency

towards unions has increased during last decade Freeman on the basis of his

researches with his companions based on WRPSs (Worker Representation and

Participation Surveys) 1990 and 2006 concluded that workers today want as much or

more of a voice in their workplace than they did in the 1990s and want a workplace-

committee form of representation The proportion of workers who want unions has

risen substantially over the last 10 years and workers want unions more than ever

before Because there are substantial gaps between workersrsquo desire to influence the

decisions and their actual influence in several important features of workplaces Bread

and butter gaps relating to issues of benefits and pay are greatest followed by the gaps

of training issues The gap between issues of what workers want in deciding how to

organize their work is smallest

19

The issue at the heart of this paper is to discuss the role of unions in making

efforts for solving the problems of workers in relationship with employers and in

relationship with state or government To avoid this paper from becoming too lengthy

actual research has been restricted to determine the efforts of unions only and not the

quantitative measure of their outcome

23 UNIONS ROLE FOR WORKERS BENEFITS

There have been difficulties in union formation and after formations unions

have also faced a lot of problems while running their business Now it is to see what

the role has been played by unions for benefit of workers and to what extent unions

succeeded therein In this regard researches have been conducted in different countries

or regions in the past which show struggle of respective unions for benefits of workers

such as rise in wages decrease in wage inequalities improvement in working

conditions and living standard betterment in quality of life reduction of working time

job security more paid leaves better pension facility employer sustained insurance

facility health care and health insurance and better health and occupational safety

conditions workers training and education facilities workers family welfare and

cooperative facilities for workers giving the workers awareness of their rights

reducing the fear of employer promulgation of workers favoring laws getting the

enforcement of these laws etc and during this what attitudes unions adopted

aggressive or cooperative constructive or conflicting selfish or sacrificial peaceful or

militant Researches are here to support and endorse these points

According to Guisinger and Irfan (1975) government intervention trade unions

and employer himself are responsible for wage increase

Sennholz (1983) asserted that now it is acknowledged that all labor

improvements are an achievement of the combined efforts of labor legislation and

union activity The credits for this goes to humanitarian legislators and courageous

union leaders for phenomenal rise in wage rates reduction of daily hours of work the

disappearance of child labor the limitation of woman labor and many other results

20

Khan (1992) narrated that trade unions protect material standards of living for

their members and also achieve security of service status in society and self respect

for themselves

According to studies of Nathanson et al (1999) in Israel Inoue (1999) in Japan

and Fahlbeck (1999) in Sweden in socioeconomic field unions rose to the challenge

of meeting the changing requirements of an industrial society for example

established themselves as credible partners and provided a variety of services to

members such as mutual aid credit insurance housing and consumer services mostly

through cooperatives linked to union membership

Jose (2000) concluded that unions played a conduit role for turning economic

growth and prosperity to workers in the form of improved standards of living and the

benefits of collective bargaining in terms of wage and non-wage benefits particularly

as reduction of working time Unions also helped to maintain a wage structure which

minimized income disparities between workers He further expressed that trade unions

are to lead an initiative for a social minimum wage consisting of the right to income

security (security of job) and other entitlements such as education health shelter and a

safe environment (workplace) In Scandinavia the pre-eminent position enjoyed by

unions in terms of membership and influence over public policies was anchored in the

services that unions provided to their members

According to Hirsch and Schumacher (2000) on balance unions are detrimental

to company performance and economic efficiency but in addition to unionrsquos negative

effects unionrsquos representation and collective bargaining provide workers with varying

degree of workplace democracy collective voice monitoring of working condition

protection from discrimination and enforcement of contractual provisions

Lovell et al (2002) using data of Current Population Survey US Census

Bureau found that workers in the retail food industry who are union members have

significantly higher wages higher rates of health insurance coverage larger

employment-based contributions to health insurance premiums and higher rates of

pension coverage than non-union workers Full-time and part-time workers women

and single mothers in the retail food industry all benefit from union membership

21

Shafiq-ur-Rehman (2003) wrote about Pakistan that now role of labor unions is

broad based and in additions to their collective bargaining role unions are involved in

social educational and recreational activities He also expressed that unionization can

the morale and motivation of the work force by improving the nature of jobs or by

changing workersrsquo perception of their jobs

Robles et al (2004) are of the view that unions are also promoters of social

capital in the economy by representing workersrsquo petitions exerting a pressure aimed

to improve conditions at the workplace and acting as employeesrsquo voice easing

communication between workers and employer which leads to help degree of job

turnover consequently reducing training cost of new employees Robles et al asserted

about unionsrsquo role for wages that empirical evidence has shown that unions exert an

upward pressure on wages

231 Wage Rise

The difference of wages between unionized and non-unionized workers is

lsquounion wage premiumrsquo and a major reason of workersrsquo joining of unions Pencavel

(1995) asserted that a primary concern of labor unions is to raise the wages of the

workers they represent because they act as wage-makers rather than wage takers this

role identifies unions as monopolies and according to Bryson (2001) union recognition

by employer for pay bargaining is basis for union influence in the workplace

According to Aslam (1982) a Pakistani researcher wages are of great

significance in an economy because they represent income to the workers cost to the

business men and are a major source of their purchasing power and have an important

bearing on the level of economic activity

Freeman and Medoff (1984) concluded that wage effect of union increased in

the 1970s when unionized workers won wage gains exceeding those of their nonunion

peers It is greater for less educated than more educated workers for younger than for

prime-age workers and for junior than for senior workers and it is greater in heavily

organized industries and in regulated industries than in others As a result of the

existence of trade unions in some unionized firms workers in nonunion firms trying to

22

avoid unions through positive labor relations obtain higher wages and better

working conditions because of the threat of unionism

As per findings of Cassoni et al (2002) the unions increase both wages and

employment and promote investment because the firms substitute labor by capital

Below mentioned studies reveal quantitative unionsrsquo efforts in wage rise or

mitigating wage salary differences

Aidt and Tzannatos (2001) referred that workers either union members or

covered by collective agreements on average get a wage markup over their non

unionized (uncovered) counterparts which is almost 15 percent in the United States

and in most other industrial countries is 5 to 10 percent It appears high in Ghana

Malaysia Mexico and South Africa but relatively low in the Republic of Korea

Holley jr et al (2001) quoted that unionsrsquo wages ranged between 10 and 15

percent higher than non union wages They further analyzed that by 1970s the union

wage differential climbed to 20 to 30 percent This impact was more on wages of blue

collar younger and less educated employees

Belman and Monaco (2001) using the data source of Current Population

Survey 1973-1995 of US Census Bureau found that union membership remains an

important determinant of wages with members earning 18 to 21 more than their

non-union counterparts The earnings of truck drivers fell by 21 between 1973 and

1995 and the primary sources of wage decline and increased wage inequality have

been deregulation a declining manufacturing wage and declining union membership

Blanchflower and Bryson (2002) concluded that both in UK and USA despite

union membership is declining unions are able to raise wages substantially over the

equivalent non union wages and unions in the countries Australia Austria Brazil

Canada Cyprus Denmark Japan New Zealand Norway Portugal and Spain are also

able to raise wages by significant amount and estimates from their 17 examined

countries were averaging 17 percent However in countries like France Germany

23

Italy Netherlands and Sweden where union wage settlement spill over in to non-

union sector there is no significant union wage differential

Klaff and Ehrenberg (2003) using the data source of survey conducted in USA

by the Association of Higher Education Facilities Officers 1997-1998 investigated that

union coverage affected staff salaries at 163 US colleges and universities and

estimated a union salary premium of 9- 11

Cleveland et al (2003) using Survey data for Canadian childcare workers in

1991 found that the union impact on wages was 15

Mishel and Walters (2003) found that unions raise the wages of unionized

workers by roughly 20 and raise total compensation by about 28 They also found

that in USA according to estimates from household surveys in 1990s there was a union

wage premium ranging from 15 to 25 The unionizations impact on wages goes

beyond the workers covered by collective bargaining to affect nonunion wages and

labor practices eg in USA non-unionized high school graduates earned 20 to 55

higher wages in industries with 25 unionization than they did in completely non-

unionized industries

Hirsch (2003) also reported that in one study in 2001 the ECEC data showed a

large gap in benefits between union and non-union workers and hourly compensation

for nonunion workers was $1998 whereas compensation for union workers was $

278 Unions not only raise wages of unionized workers but also affect nonunion

wages albeit to a far lesser extent than union wages

Kang (2003) in a study in Singapore estimated approximate union wage effect

in the range of 02 to 32 percent

Waisgrais (2003) also narrated in a report about Argentina with reference to

several studies regarding the role of the unions and in particular to collective

bargaining that workers covered by collective agreements receive higher wages than

those who are not

24

Knox 2004 wrote that unionized workers are still doing well despite the

flagging numbers as in USA with 8 of workers in the private sector unions still

exercise real power over contracts and there are substantial wage mark-ups In Britain

that isnt the case theres no wage mark-up anymore

However according to several studies unions could achieve either marginal or

no improvement in wages Inoue (1999) revealed that in Japan the automatic annual

pay raise system is widely adopted and wages rise according to years of service

which serve as an indicator for skills In terms of real wages unions have gained

marginal improvements during the 1990s

Similarly Anyemedu (2002) found that in Ghana government considers wage

restraint as a means of attracting foreign investment Hence the government and

employers have succeeded in installing the capacity to pay of employers as virtually

the only factor to be taken into account in wage determination

232 Reduction in Wage Inequality

Labor unions also exert efforts for increasing equality and reducing

discrimination in wages of workers

Freeman and Medoff (1984) opined that unions raise blue-collar earnings

relatively more than white-collar earnings thus reducing inequality between those groups

Unions by adopting pay policies that limit managerial discretion in wage-setting reduce

inequality among workers in the same establishments and among different establishments

A study of The World Bank (1995) revealed that unions eliminated discrimination

of income between workers so during a study in the Republic of Korea in 1988-90 it was

found that unions placed great value on wage equalization and as a result the degree of

wage dispersion in the unionized sector was 52 lower than in the non-unionized sector

In Mexico union action also helped to reduce discrimination and another study using wage

data for 1989 concluded that in the nonunion sector men enjoyed a 175 wage

advantage over women with identical skills and experience but there was no significant

wage differential between men and women in the unionized sector Similarly the study

25

found a significant wage disadvantage for indigenous people in the non-unionized sector

whereas no discrimination in firms covered by trade unions

Stiglitz (2000) Senior Vice president World Bank mentioned admiringly the

role played by organized labor in developed countries in stabilizing industrial

relations preserving firm-specific knowledge and organizational capital and

mitigating the income inequalities

Aidt and Tzannatos (2001) also concluded that unions reduced the wage

differences particularly between unionized workers and skilled and unskilled workers

Card et al (2003) reported similar result that within workers groups of same

skill for union workers wage inequality is always lower than nonunion workers

233 Fringe Benefits

Sennholz (1983) stated that most people expect more from their work than

wages These things are fringe benefits and provide additional remuneration to

employees in the form of vacation and holiday pay sick pay the cost of pensions and

employer contributions to various benefit systems

Cleveland et al (2003) found that the union impact on fringe benefits was in

line with union effects found in other better-compensated work and they found

substantial returns to education occupational level and firm-specific experience

George (2004) concluded that the demand of workers for social justice is

justified and workers are entitled to an equitable distribution of the nationrsquos wealth on

the reasons that labor is an equal partner with capital and management and laborers

are the primary contributors to economic growth of a nation So the workers should be

paid a fair living wage for their labor and certain fringe benefits such as free

healthcare paid holidays and job security George reported that several claims such as

bonuses overtime payments working hours shift duty allowances gratuities

uniforms transport allowances and housing vehicle loans are negotiated between the

union and the employer

26

Carty (2003) referred that in Mexico Consequence of replacement of CROC a

government backed union by an independent union workers receive a wage increase of

10 and a 5 increase in cash benefits and attendance bonuses Workers now make

up to 40 more pay than they were making under the old contract

234 Job Security and Employment

As per analysis of Inoue (1999) for Japanese trade unions safeguarding their

members from any threat of unemployment has a special importance so Japanese trade

unions do not accept lay-offs During the 1950s and1960s there were many protracted

labor disputes caused by threatened dismissal Trade unions lost most of these big

disputes but the losses incurred by the companies were also enormous Therefore in

Japan there is a tacit agreement between labor and management to avoid massive lay-

offs as far as possible This agreement is manifest in employment adjustment practices

during the recession in the 1990

Wong (2000) expressed that employment security and fair distribution of the

benefits of economic growth have been the primary concerns of the labor movement in

Singapore

Farber (2001) quoted the Freemanrsquos analysis that ldquoworkers in union jobs are

less likely to quit reflecting the higher level of wages and benefits this is due to

unions provision of mechanism for lsquovoicersquo as an alternative to lsquoexitrsquo in addressing

workplace concernrdquo

Aidt and Tzannatos (2001) also concluded that in unionized firms voluntary

job turn-over is lower and the job tenure is longer The evidence on this finding from

Australia Japan Malaysia the United Kingdom and the United States seems quite

robust On the other hand layoffs particularly temporary layoffs are more frequent in

unionized firms than in non-unionized ones

According to Lee et al (2001) Labor unions in Korea strongly opposed the

introduction of redundancy lay-off by massive nation wide strikes

27

Unions also give courage and awareness therefore according to Mishel and

Walters (2003) Union members have significantly less anxiety about losing their job

or suffering other employer-imposed penalties for taking leave

ILO (1999) reported that the trade unions cooperated in Singapore with the

state and the employers in efforts to maintain full employment to set wages at levels

which maximize employment therefore unions have accepted temporary wage cuts in

order to save employment

Vedder and Gallaway (2002) asserted that unions are associated with lower

rate of growth in income and jobs Occupations and industries with high rates of union

density have had less vibrant job growth in recent decades Widespread unionization

of an industry is often associated with initial sharp declines in employment as the

steel industry demonstrates

Addison (nd) concluded from survey in UK and reported a retarding role of

unions in employment growth as unionized establishment in 1980s tended to grow 3

percent less per year than their non unionized counterparts Union plants were more

likely to be shedding labor and unions induced reduction in employment growth in

26 for 1989-90

To overcome loss of unemployment and slow growth in employment caused

by unionization unions played role in launching unemployment insurance schemes

and unemployment benefits Katz et al (1993) reported that unions in Sweden and

Denmark have played a constructive role in the administration of unemployment

benefits

Bernhardt et al (2002) studied the Wisconsin Regional Training Partnership

(WRTP) which is an association of 125 employers and unions dedicated to family-

supporting jobs in a competitive business environment and found that the WRTP

members have stabilized manufacturing employment and contributed about 6000

additional industrial jobs to it over the past five years

28

According to Mishel and Walters (2003) unionrsquos representation increases the

likelihood of an unemployed worker in a blue-collar occupation receiving

unemployment insurance (UI) benefits by approximately 23 They also referred that

role of unions is pivotal considering unemployment insurance acts as a stabilizer for

the economy during times of recession

Unions have also operated Unemployment Insurance themselves as Zutavern

(2005) reported the existence of unions operated voluntary unemployment insurance

schemes in Denmark Finland and Sweden

Budd and McCall (2004) using and analyzing data source of January 1996

Current Population Surveys Displaced Worker Supplement of US Census Bureau

found that eligible blue-collar workers laid off from union jobs are approximately 23

more likely than comparable nonunion workers to receive unemployment insurance

benefits

235 Time Reduction (Duty Hours)

Unions have struggled to minimize the duty time and working hours which

were once more than ten hours in a day or more than 70 hours a week (even more than

3000 hours a year) in 19th century But in 20th century are 8 hours a day or 40 hours a

week and in some countries even less than this However the level of success is

different in different countries

Colman (2000) reported that in USA in 1835 General Trade Unions in a

number of cities led a successful general strike to shorten the working day from

fourteen hours or more to ten hours and in Philadelphia a group of Irish laborers

struck for time reduction and marched through the city chanting lsquosix to sixrsquo In same

year in Dover New Hampshire girls and boys struck the cityrsquos mills and won a

reduction of hours from 135 to 12 hours per day Their effort succeeded after a

century and time was reduced to eight hours As Sennholz (1983) wrote that in USA in

1938 the federal government passed Fair Labor Standards Act which imposed

minimum wage rates provided for a 40-hour week and also allowed for overtime

work if paid at time and one half and it is public opinion that all labor improvements

29

are an achievement of the combined efforts of labor legislation and union activity ILO

(1999) reported that unions in Germany have negotiated for a 35 hours week in some

sectors and regions early retirement schemes part-time work educational leave and

family leave

Japanese Labor Union Rengo presented a reduction in working hours and

adoption of policies favoring labor Rengo sought the introduction of a five-day week

In 1993 Rengo adopted the policy delineated in the New Medium-Term Working

Hour Reduction Plan with the target of 1800 working hours by fiscal year 2000

(Inoue 1999)

This time reduction was prevailing everywhere at large extent as Aidt amp

Tzannatos 2001) wrote that hours worked is lower among unionized than non-

unionized workers This is true for both total and normal hours

Buchmueller et al (2001) also found that union workers work fewer hours per

week than non unionized workers and this difference was 3 hours from 1972 to 1984

and after 1992 this difference is one hour per week

Lee et al (2001) pointed out that in 1997 in Korea flexible working hour

system was allowed with maximum of 48 hours per week cycle with the condition that

one week average will not exceed 44 hours or 8 hour a day

236 Payment of Over Time

Aidt and Tzannatos 2001) pointed out that unionized workers are more likely

to get paid for the overtime work that they do

According to Mishel and Walters (2003) employer compliance with the

overtime pay regulation rose sharply with the presence of a union because unions

often report violations to enforcement agencies

237 Paid Leaves

Budd and Mumford (2001) asserted that in UK trade union is one possible

institution for improving work-life problem and a primary mechanism for trade unions

30

in this regard is to bargain for additional employer-provided family friendly policies

including parental leave and paid family leave Unions appear to positively affect the

provisions of parental leave and job sharing options

Union workers have one week more vacation time than non-union workers

Union workers generally spend on leave slightly more time for illness their own or

illness of others which is approximately 14 week per year as compared to one week of

non-union members (Buchmueller et al 2001)

Aidt and Tzannatos (2001) stated that fringe benefits are more commonly

found among unionized workers than among non-unionized ones (in Australia Japan

Malaysia the United Kingdom and the United States) Benefits can include severance

pay paid holidays paid sick leave pension plans and so on

Mishel and Walters (2003) expressed that union workers also get more paid

time off which includes having 266 more vacation than nonunion workers and

according to another estimate the union workers enjoy 143 more paid time off

including vacations and holidays

238 Working Condition

Working conditions are of very importance for workers because they affect

their performance and productivity Khan (1992) wrote that an industrial worker

spends at least 8 hours a day three hundred days a year and about forty to fifty years

of his life period at workplace If the lives of the industrial people are generally

healthy happy and agreeable it is necessary that working conditions should be

healthy congenial and attractive and work itself should be made as interesting as

possible and relations between workplace workers and management should be

friendly and cooperative Robles et al (2004) asserted that enhancement of working

conditions in turn may increase inputsrsquo productivity Unions exert efforts for pleasant

working conditions

31

Thomas (1999) stated that trade union movement in South Korea fought for

basic labor rights and improvement of working conditions and it also has widely

known assertive role in the processes of re-structuring

Wong (2000) narrated that in Singapore the fundamental role of trade unions

remained to ensure fair wages and working conditions and to improve the standard of

living and quality of life of workers

239 Health Care and Social Security

Unionsrsquo role in securing health safety and welfare benefits for employees has

been found in following studies

Weil (1992) in his study made a comparison of OSHA enforcement in union

and nonunion construction sites and found that union sites face higher probabilities of

inspection and receive greater scrutiny during inspections than do comparable

nonunion sites

According to Buchmueller et al (1999) the role of US trade unions in

obtaining health and welfare benefits for their members dates to the 18th century and

in Britain a greater inducement for workers to join the union was support in sickness

or unemployment They also reported that in USA due to collective voice and other

factors union effects on the provision of health insurance are likely to be large

therefore unionized workers are more likely than non-unionized workers to receive

health benefits and the difference is depicted by higher probabilities of insurance

offers and higher take-up rates for union workers They further wrote that plans

offered by union establishments are about 20 percentage points more likely to be fully

financed by employers (494 percent vs 296 percent) than employers of non union

establishments They also asserted that in health plans in unionrsquos establishments

proportion of health insurance premiums paid by employers was 14 percent higher in

union settings Buchmueller et al found that in USA union establishments are 153

percentage points more likely to pay the full premium of insurance for family

coverage as compare to non-union ones (276 percent vs123 percent)

32

Stiglitz (2000) admitted that unions have played role in Health and safety

standards and had played also role in improvement of working conditions for workers

According to another study by Jose (2000) Histadrut a trade unions of Israel

grew in strength until the early 1990s with an impressive membership based on the

provision of services notably health care

According to Farber (2001) union members receive a larger fraction of their

compensation in the form of health insurance and pensions

Budd and Mumford (2001) also reported that individuals represented by a trade

union are more likely to receive traditional fringe benefits such as health insurance and

retirement plans

Adji (2002) expressed that in the Niger the union representing employees

working for the national social security scheme (CNSS) is preparing a social fund

designed to provide a supplementary pension and to pay the 20 per cent of medical

expenses which are not covered by the national scheme In Niger the USTN is

developing a health insurance project

According to Hirsch (2003) unionsrsquo workers receive more compensation for

risks than non-union workers

Mishel and Walters (2003) narrated that ldquoUnions had provided labor

protections for their members in three important ways (1) By identifying where laws

and regulations are needed and getting these laws enacted (2) Providing information

to members about workers rights and available programs and (3) By encouraging

their members to exercise workplace rights and participate in programs by reducing

fear of employer retributionrdquo Mishel and Walters concluded that unionized workers

are given employer-provided health and pension benefits far more frequently as

compare to nonunion workers and also provided with better paid leave and better

health and pension plans Unions also reduce wage inequality between workers and

workers groups because they raise wages more for low and middle-wage workers than

for higher-wage workers more for blue-collar than for white-collar workers and more

33

for workers who do not have a college degree Union members are 60 more likely

to file an indemnity claim than nonunion workers They also mentioned findings

quantitatively that 835 of unionized workers have employer-provided health

insurance and only 62 of non-unionized workers have such a benefit Unionized

workers are 244 more likely to receive health insurance coverage in their

retirement Employers with unionized workforces also provide better health insurance

paying an 111 larger share of single worker coverage and a 156 greater share of

family coverage and deductibles for unionized workers are 18 less They concluded

that in USA implementation of OSHA seems highly dependent upon the presence of a

union at the workplace

ILO (2005) reported that every year some 22 million people in the world

succumb to work related accidents or diseases so it is the daily grass root work of

labor unions to ensure the compliance of health and safety regulations at work

2310 Post Retirement Benefits (Pensions)

Unions also have an eye on the life of workers after the end of service For this

they exert efforts either in the form of arranging employer contribution or launch their

own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is

shown in the several researches where unionized workers receive better pension

options and opportunities

Freeman and Medoff (1984) opined that unions alter the entire package of

compensation substantially increasing the proportion of compensation allotted to

fringe benefits particularly to deferred benefits such as pensions and accident and

health insurance which are favored by older workers These changes are on balance

to be viewed as a social plus

Bernard (1998) was of the view that trade unions in USA had been the most

successful labor movement in the world by enjoying the highest wage premium and

winning benefits like pensions health care and paid vacations for their members that

in other industrial countries working people could win only through political and

industrial action

34

Holley jr et al (2001) expressed that in 1999 unionized US employers per

hour paid benefit costs averaging $ 853 compared to non-union employer costs $466

These costs include pension payments payments for time not worked (such as

vacations sick leave paid rest and lunch breaks) insurance costs and legally required

payments (social security unemployment compensation)

Buchmueller et al (2001) reported that in 1983 union workers were nearly

twice as likely to participate as compare to non-union workers in an employer-

sponsored pension plan (766 percent vs 388 percent) and between the years 1988 to

1993 the unionrsquos effect on employer provision of retiree benefits increased

substantially and the unadjusted union effect rose from 101 percentage points to 167

percentage points

Similarly Mishel and Walters (2003) wrote that 719 of unionized workers

have pensions provided by their employers while only 438 of nonunion workers

enjoy this facility Thus unionized workers are 539 more likely to have pension

coverage

Ebbinghaus (2002) found that in Europe trade unions have gained or

enhanced their collective bargaining role in the area of private pensions in addition to

mandatory state pensions

2311 Training Opportunities

According to some researches unions are also taking interest in workers

training education and awareness either pursuing government or employers to arrange

training or arranging training programs themselves to build their skill and enhance the

earning capacity of workers

Therefore Aidt and Tzannatos (2001) wrote that unionized workers tend to

receive more training than their non-unionized counterparts especially company-

related training

Wong (2000) stated that in Singapore unions urged employers to invest in

training of workers and also negotiated training clauses in collective agreements and

35

sought to ensure higher subsidies from SDF for training of lower- skilled lower-

income workers She further wrote that NTUC and affiliated unions urged workers to

enhance their skills as a means to ensure employment security by keeping pace with

changing job requirements and to increase their earning capability in the longer term

In December 1996 to help workers to remain employable throughout life by providing

nationally certified skill training NTUC also approached employers to sponsor their

employees for skills upgrading programs On 30th June 1999 a total of 288 companies

had committed 21800 workers for SRP programs in five general launches and nine

sectoral launches since December 1996

Katz et al (1993) wrote that in many countries unions are involved effectively

in vocational education programs so Adji (2002) reported that in Niger The USTN is

running a project to provide low-cost training to workers and one of the unions is

organizing and training workers in the sectors which it represents In January 1999 an

international cooperation project was launched (ILODANIDA) with the aim of

supporting the efforts of USTN and CNT to provide workersrsquo education in the

informal sector The USTN is also running a training school and an agricultural

project

Booth et al (2003) using data of British Household Panel Survey 1991-96

found that union-covered workers were more likely to receive training and also

received more days of training relative to non-covered workers Among workers who

received training those with union coverage enjoyed greater returns to training and

higher wage growth than did those without

Shafiq-ur-Rehman (2003) mentioned about Pakistan that capitalist

entrepreneurs including the past governments have been least interested in

development and training but this situation has improved now and many employers

with encouragement from Skill Development Fund are actively training their workers

and provide all facilities to trade unions

TUC (2006) in a briefing paper reported that union presence has a significant

impact on the incidence of training Analysis of the 2003 Labor Force which showed

that 39 of union members had been engaged in some training in the previous three

36

months compared to only 26 of non-unionized employees TUC also reported that

employees get more training when the issue is negotiated with employers by unions

rather than employers simply consulting with unions about the organizations training

strategy TUC referred research by Francis Green 1996 which demonstrated that

unionized workplaces were 17 more likely to have a training centre and 11 more

likely to have a training plan TUC referred other studies such as of Heyes et al

(1998) showing that training is more likely to deliver benefits to members when

unions not only secure recognition from the employers but also play an active role in

decisions about what is provided and Metcalfs research who found that the pay-off

from engaging in training is also much greater for union members than it is for non-

unionized employees For male union members the post-training wage was 21

higher than the pre-training wage but the corresponding increase for non-unionized

male employees was only 4

Addison (nd) wrote that there are a number of theoretical arguments

suggesting that unions may stimulate training The British work on determinants of

training has generally reported positive effects He reported positive relations of

unionsrsquo recognition with the incidence of training and union recognition also leads to

increased hours or days of training

A study of Boheim and Booth (2004) showed positive relations of union

recognition with training in private sector

2312 Workersrsquo Education

Fahlbeck (1999) reported that in Sweden the extensive training and education

programs conducted by virtually all unions LO for example has a wide range of

educational programs and runs several schools Anyemedu (2002) also reported that in

Ghana the TUC has made the education of its members one of its priority concerns

The participants of conference on sustainable development (CSD 2001) evidenced it

by acknowledging that trade unions have developed capacity for workplace centered

education because unions are the foremost providers of adult education in many

countries

37

2313 Recreational and Social Services

Unions have rendered service in provision of social benefits launching

cooperative movement and arranging recreational facilities to workers Jose (2000)

wrote that unions over the years embraced a broader agenda including health care

leisure and recreation retirement and non-wage benefits from employment

Fahlbeck (1999) reported that unions in Sweden provide services regarding the

private lives of their members for examples unionrsquos actions include contracting

insurance policies for their members such as home and accident insurance In

addition unions can arrange private bank loans or provide collateral for a loan and

Swedish union LO has recently entered in the field of utilities About recreational

services Fahlbeck wrote that unions routinely assist members in realizing meaningful

activities during time off and also help in arranging vacations One of the leading

travel and tour operators in Sweden which also runs hotels is a creature of the LO

movement

ILO (1999) observed that in the newly industrialized countries unions have

played an important role in shaping social security systems that is different from

industrialized countries For example in Singapore unions provided welfare benefits

to members Workers and employers together contributed a significant share of their

earnings to the Central Provident Fund Unions also participated in mobilizing

savings The other example is of Hong Kong where unions have also pushed for the

establishment of a pension system although this has not yet been functional In the

newly industrialized countries unions have played an important role in shaping social

security systems such as in Singapore where unions provide welfare benefits to

members and also participate in a sophisticated mechanism for mobilizing savings

Workers and employers together contribute a significant share of their earnings to the

Central Provident Fund which has become an important pillar of the Singapore

economy In Hong Kong (China) unions have also pushed for the establishment of a

pension system although this has not yet been put in place

38

Thomas (1999) reported that in Singapore trade union movement adopted new

role being associated with the implementation of welfare schemes so he terms unionrsquos

this role in Singapore as accommodating model

Virmani and Rao (1999) reported that the unions in Singapore have started on

non bargainable activities to enrich workers lives as they are promoters of

cooperatives in transportation health care consumer cooperatives insurance etc by

running 8000 taxies and 47 cooperative supermarkets

Wong (2000) expressed that in Singapore in 1969 for a socio-economic

movement contributing to workers well being in the wider community the role of

trade unions was broadened beyond collective bargaining on terms and conditions at

the workplace To start a cooperative movement decision was made to pool resources

with the objective to provide services to which private businesses were not offering to

lower-income workers and to give workers a stake in the ownership and management

of business ventures It was also decided to return any surplus to worker and union

shareholders and to the labor movement Wong further narrated about provision of

recreational facilities that in Singapore in 1986 the NTUC pooled resources to set up a

union operated Club for affordable facilities for members and their families today

there are eight outlets in the Singapore Unions with corporate support developed at

state land large-scale projects like NTUC Pasir Ris Resort NTUC Sentosa Beach

Resort and NTUC Aranda Club for affordable holiday facilities within Singapore and

also sat up the Orchid Country Club for workers golfing accessible to all through their

union or personal membership For cooperatives Wong reported that in Singapore

NTUC established its first cooperatives in 1970 to provide insurance to ignored

workers now there are ten cooperatives ie Denticare Fair Price (supermarket)

Childcare Healthcare Food fare (cooked food) Choice Homes Eldercare Media

Thrift and Loan providing services to meet the diverse needs of workers and their

families

Stiglitz (2000) also acknowledged the highly constructive social and political

roles of labor movements in many countries in promoting adult education movement

39

the mutualism movement in the form of credit unions mutual banking mutual

insurance cooperatives friendly societies and other self-help associations

Ebbinghaus (2002) found that even in Europe now unions are involved in the

social policy area and participating in self-governing bodies of national social

insurance schemes

2314 Children Education

Song (1999) wrote in research report about unionsrsquo struggle in Korea that

working conditions have gradually improved with a shorter working day and for

better fringe benefits including childrens education and housing allowances

2315 Workers Awareness

Mishel and Walters (2003) reported that unions created awareness about laws

regarding health such as in USA about FMLAs existence and regulations Unions

have also given workers awareness about their rights so union members are about 10

more likely to have heard of the FMLA (in USA) and understand whether or not they

are eligible This is because of awareness given to them by unions

24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY

The co-operative role of unions towards state employer and society by

exerting efforts to increase productivity and efficiency has been studied by several

researchers as quoted in following lines

241 Productivity Efficiency and Profitability

According to Hirsch (1997) productivity simply means output for given levels

of inputs A firm that is more productive than another can produce more output using

the same combination of inputs or equivalently produces the same output using fewer

inputs When increase in productivity is referred attributable to unions it means a real

shift in the marginal product schedule Hirsch concluded from many studies both

negative and positive effects of unions on productivity Even some studies show

negative as well as positive effects of unions on productivity at different times in the

40

same study Hirsch quoted about the effect of unions upon productivity that unions

increased total factor productivity by more than 20 percent

Shafiq-ur-Rehman (2003) is of the opinion that unions provide their members

both with protection against arbitrary management decisions and voice ant work place

and this will be not only increasing wages but productivity as well He further wrote

that collective voice face of unionism suggests important ways in which unionism can

raise productivity

There are surprisingly few manufacturing-wide or economy-wide productivity

studies and none reports consistent evidence of an overall positive effect of unions

upon productivity

Maki (1983) using aggregate Canadian data concluded that the shock effects

of unionization initially increase productivity levels but that unionism is associated

with slower productivity growth British studies of Nickell Wadhwani and Wall

(1992) and Gregg Machin and Metcalf (1993) for differences in productivity growth

between unionized and non-unionized firms evidenced that unions have either a

negative effect or no effect on productivity growth during the early years of their

analysis but positive effects during the 1980s Marshall (1987) is of opinion of

negative effects of unions on productivity and economic performance

A study of Morgan (1994) who used aggregate cross-sectional manufacturing

data across time found surprising results Morganrsquos estimates for the years around

1972 were of increasing productivity but declined steadily over time and were

negative during the 1980s

Fernie and Metcaf (1995) found that for one dimension measure the union

effect is negative but only marginally significant

Hirsch (1997) referred his own study based on a sample of 531 firms and

covering the period from 1968 to 1980 and provides the most comprehensive

treatment of unions effects on productivity growth where he found that union firms

are found to have substantially slower productivity growth than nonunion firms

41

Aidt and Tzannatos (2001) are of the view that the impact of unions on

productivity levels is empirically indeterminate Some studies suggest a positive

impact but others imply a negative impact or no impact at all For example unions

appear to have a negative impact on productivity levels in the United Kingdom but a

positive impact in Malaysia Regarding profitability Aidt and Tzannatos concluded

that net company profits tend to be lower in unionized firms than in similar non-

unionized firms (in Japan the United Kingdom and the United States) There seems

to be a relatively large negative impact on profitability in firms that have product

market power

Addison (nd) wrote about UK that early British evidence shows negative

effects of unionism on the productivity of firm and establishment but according to

later researches there is no short fall in unionized establishments during period of

1979-1984 and unionized firms increased their productivity most at the end of the

1980s There are several studies showing negative albeit least effects of unionism on

productivity as Gregg et al (1993) found that unions recognition affects negatively but

statistically insignificant effect during 1984-97 but positive and statistically significant

for 1988-89 (+3 to 4 ) Study of Conyon and Freeman (2001) revealed that union

effect is negative but statistically insignificant

According to Vedder and Gallaway (2002) Labor unions in contemporary

America have harmful aggregate effects on the economy They are associated with

lower rates of growth in income and jobs On balance people move away from union-

intensive areas to areas with relatively low rates of union density Occupations and

industries with high rates of union density have had less vibrant job growth in recent

decades Widespread unionization of an industry is often associated with initial sharp

declines in employment as the steel industry demonstrates The decline in union

density in the private sector in the past generation has been sharp and that decline has

added to the vitality of the economy at the beginning of the new century The

increasing weakness of unions in the market economy has contributed to economic

growth and a rising proportion of the working age population that actually works

42

From some researches evidences have been found that unions have worked for

enhancing the efficiency and productivity of workers Freeman and Medoff (1984) are

of the view that in many sectors unionized establishments are more productive than

nonunion establishments while in only a few they are less productive The higher

productivity is due to lower rate of turnover under unionism improved managerial

performance in response to the union challenge and generally cooperative labor-

management relations at the plant level

Eaton and Voos (1992) concluded that union firms are more likely than their

nonunion counterparts to be involved in workplace innovation such as those of

cooperative arrangements like teamwork and production gain sharing which yield

higher productivity Kelley and Harrison (1992) found that unionized firms were as

much as 31 percent more productive than non-union firms

In its report the World Bank (1995) concluded that trade unionrsquos activities

could be conducive to higher efficiency and productivity because they balanced the

power relationship between workers and managers and unions limit employerrsquos

arbitrary exploitative or retaliatory behavior by establishing grievance and arbitration

procedures Unions reduce turnover and promote stability in the workforce conditions

that causes an overall improvement in industrial relations which leads to enhance

workers productivity The view that the unions can enhance productivity and

efficiency also has been supported by recently analyzing Malaysian data

Pencavel (1995) wrote that presence of union and its representation of workersrsquo

demands views and ideas before management can benefit as well as harm the firm It

benefits when productivity and efficiency is increased and causes harms when wages are

raised beyond the firmsrsquo paying level For example in many jobs the worker may be

better informed about the potential for productivity improvements within his department

than his supervisor and he will be more willing to provide that information if he is

confident that any change in organization will benefit him He can communicate his

information to management through his agent that is union The presence of an agent of

the worker may make the worker less suspicious that the information he reveals will

benefit only management There is evidence that participation by workers in a firms

43

decision-making sometimes raises productivity and if the union involves the workers in

efficiency-enhancing activities then unionism is associated with a more productive

organization However according to Pencavel there were also arguments to suggest that

unionism harms productivity particularly when a union protects indolent or careless

workers from disciplinary action or when a union opposes changes especially labor-

saving technological changes and thereby retards an organizations development or a

union may successfully negotiate capital-labor ratios that oblige the firm to use more

workers per machine than relative input prices would call for

Fashoyin (1997) is of the view that in Japan the productivity improvement

movement has had a much greater impact and unions were an important party to the

productivity improvement crusade

According to Tolentino (1997) during the Asian Regional Seminar of ILO on

Trade Unions Industrial Relations and Productivity held in Tokyo in 1982 the

participants adopted the view that the goal of high and increasing productivity in

industry agriculture and services is one to which Asian trade unions no less than

management and government can and ought to subscribe This position was a clear

exemplification of the trade unions long commitment to national development and

indeed of their perception of the leading role which they could and should play in this

process Tolentino opined that the rapidly globalizing economy calls for dramatic

changes in the roles that the trade unions have to play to improve national

competitiveness for the sake of workersrsquo well-being As representatives of workers

they could play a significant and active role in creating the national economic and

business environment that will make their countries competitive in the globalize

marketplace of capital technology products and services The trade unions as

representative organizations of workers have very important roles in the promotion of

productivity At the macro level they could participate in the creation of the policy

and general business environment conducive to productivity improvement and at the

institutional level they could exercise their influence in making productivity related

institutions such as vocational training systems industrial relation bodies etc

effective At company level trade unions can participate in the companys productivity

improvement efforts by helping to create the enterprise policies and structures that will

44

guide and facilitate productivity improvement and helping their members directly to

participate in the productivity improvement programs of the enterprise In Poland in

the last three years more than 600 enterprises have undertaken productivity

improvement programs through the joint efforts of management and trade unions and

achieved growth 2 to 5 times the growth rate of the whole Polish economy

Productivity raised by 78 (in one year) compared to 8 in the total economy The

tremendous increase of profit made bonuses possible Some of the enterprise started to

increase employment The personal income of workers increased by an average of 20

compared to 2 in the whole economy due to the 40 growth in the value added

in these enterprises compared to 6 in the whole economy

According to Human Rights Watch (1998) productivity in Malaysia is actually

higher in enterprises where the workers are organized in industrial unions than in non-

unionized companies

Cassoni et al (2002) also reported that unions promote increases in

productivity and prevent profitability increases

A study of Bernhardt et al (2002) of Wisconsin Regional Training Partnership

an association of 125 employers and unions concluded that among member firms

productivity is way up exceeding productivity growth in nonmember firms

Shafiq-ur-Rehman (2003) wrote that in some Asian countries like Korea and

Japan trade unions adopted a cooperative and assisted management in improving

efficiency

Ash and Seago (2004) examined the relationship of unionized nursing staff and

the mortality rate for acute myocardial infarction (AMI) or heart attack in acute care

hospitals in California and found that hospitals with union nurses have 55 lower

heart-attack mortality than do non-union hospitals

Doucouliagos and Laroche (2003) expressed that the economics literature

found a positive association of unions on productivity The positive association of

unions with productivity is established for the United States in general and for US

45

manufacturing in particular Eisenbrey (2007) denied the common myth that unions

hurt productivity supposedly because they impose work rules that make their

employers less efficient He quoted yearly growth of workers productivity in the form

of bar chart showing productivity increase of 18 18 15 15 14 17 23 and 17

for Belgium France Germany Italy Netherlands Spain Sweden and USA

respectively for years 1979 to 2005 Productivity in USA did not increase even as

consequence of dropping of unionization to 12 during this period while productivity

increased in the seven largest European countries with union density greater than 60

Regarding profitability Freeman and Medoff (1984) are of the view that as

compared to non-union employers unionized employers tend to earn a lower rate of

return on capital because of increase in wages and the greater amount of capital used

per worker These increased costs are not compensated for by the higher productivity

of labor associated with unionism

About profit Hirsch (1997) analyzed that union wage gains lower firm

profitability unless offset by productivity enhancements in the workplace or higher

prices in the product market He concludes from several studies that although there is

diversity in results most studies obtain estimates suggesting that unionized firms have

profits that are 10 percent to 20 percent lower than the profits of nonunion firms

Saavedra and Torero (2002) referred evidence from some studies showing

negative effect of unions on profits and also a negative albeit less robust impact on

labor productivity in Peru

Studies of Addison and Hirsch (1989) and Machin and Stewart (1996) about

North America and Meneses-Filho (1997) for the United Kingdom reveal that unions

have a negative effect on profits and on shareholders wealth About profitability

Addison (nd) expressed that almost all early British studies showed negative effects

of various indicators of presence of union on the financial performance or profitability

46

242 Work Place Harmony and Cooperative Role

Unions are blamed for harsh and quarrelsome attitude non-cooperation and

always demanding for benefits Following studies shed light on it

Katz et al (1993) concluded that despite in some cases unions have defended

the lsquotraditional waysrsquo by fighting against the lsquochangesrsquo but in some other cases unions

cooperated for saving jobs and promoting human-side benefits of more flexible work

organization Unions have also played a proactive reformist role by pushing

management toward new forms of organization such as group work

Wagar (1997) in his paper investigated the relationship between labor-

management climate and perceptions of productivity product or service quality and

customer or client satisfaction using a regional and national sample of Canadian

organizations and a regional sample of local unions Results reveal a strong

relationship between labor-management climate and measures of organizational

performance with a more positive labor-management climate associated with more

favorable scores on the performance variables

About India DeSilva (1997) concluded that the unions and management which

are social partners after decades of conflict have gradually recognized the importance

of bipartite relations which emphasizes on workplace harmony

Preuss (1998) during a study of Management Cooperation and Hospital

Restructuring in USA found that union labor-management committees improve

communication and ease the process of implementing new hospital practices in

response to changing market demands

Song (1999) wrote that South Korean unionrsquos struggled to promote worker

compliance and commitment to firms and brought the employees back from street

rallies into the workplace

ILO (1999) reported that in countries like Denmark Germany Italy and the

Netherlands governments want to associate trade unions with social and economic

policies which are translated into employmentrdquo and social pacts whereas in the UK

47

and New Zealand during last two decades trade unions and governments relations

have deteriorated and the position of the trade unions weakened by a hostile political

environment ILO report quoted instances of union and state cooperation In Italy

because of state and unions mutual affinity a tripartite pact to promote employment

with special attention to the less developed areas and agreement including significant

elements on educational reform training and the reduction of working time was signed

in September 1996 In Spain trade unions are cooperating with government policies in

regarding job creation and regional development In Greece the General Confederation

of Workers has associated with the State and with employers organizations in

committeersquos formation on the specific problems of long-term unemployment

Similarly in Germany a similar national pact was proposed in Germany but not finally

agreed

ILO report also revealed that trade unions in Singapore cooperated with the

State and the employers in efforts to maintain full employment unions cooperated

with other social partners in attempt to set wages at levels which maximize

employment Unions are members of tripartite committees including National Wage

Council and in the past have accepted temporary wage cuts in order to save

employment About unions cooperation with employer or management ILO reported

that because of trend towards decentralization importance is given to Works Councils

and new institutions like this one example is of Italy where the trade union

movement in agreement with the State and employers associations has created a new

institution in the workplace and all workers can elect representatives from within or

outside the union Majority of seats (in this have been) won by the unions The

employers are reportedly satisfied with the new institutional structure for workers

representation The other example is of South Africa where workplace forums were

created in 1996 in order to establish joint decision-making and consultation between

management and workers at shop floor level

Virmani and Rao (1999) expressed that responsible trade unions in Singapore

are one of attractions of doing business in Singapore because with industrialization

process trade unions have developed disciplinary spirit therein and became conscious

to develop the country economically

48

Wong (2000) also wrote about unions in Singapore that the unionsrsquo approach

to industrial relations moved from conflicting to cooperative after independence of

Singapore And during recent economic crisis the importance of constructive tripartite

relations and the positive role of the labor movement has been highlighted when many

union leaders had been involved in working out mutually acceptable measures to

overcome the recession in 1986 and they reached on a consensus when Government

union leaders and employers were able to gain worker support for wage cuts

Hirsch and Schumacher (2000) referred the analysis of Freeman and Medoff

1984 concluding that Unions have had success in pushing for workplace mandates

applicable to both the union and nonunion workforce as there is strong public demand

for many forms of protection in the workplacerdquo

Hence Aidt and Tzannatos (2001) wrote that unions facilitate worker-

participation and worker-manager cooperation in the workplace This can have

efficiency-enhancing effects that jointly benefit workers and management

Yates (2001) expressed promising views about role of unions in faster growth

of New Economy that unions can overcome certain inefficiencies inherent in the

marketplace and at the same time helping individual workers to fulfill their goals more

easily and at less personal cost However Yates stressed on transformation of unions

which can begin to provide an array of personal services to members and help to

negotiate and to finance contract provisions that provide skill training for workers

Presently when new employers are promoting multi-skilling for workers unions can

help the employers to attain greater flexibility by agreeing to eliminate job

descriptions and allow employers to assign workers to a variety of jobs Unions can

also support employers in their efforts to achieve greater time flexibility through the

implementation of longer work shifts and more elastic shift scheduling and they can

agree to allow the employer to schedule mandatory overtime albeit at premium pay

Unions encouraged higher wages and protected economy in USA About the

union role in economic depression of 1930s Lichtenstein (2002) quoted from his book

State of the Union A Century of American ldquoin the 1930s as political leaders saw the

value of unions Unions offered the opportunity to protect and encourage higher

49

wages resulting in increased consumption and a stronger economy Where the

Depression was seen as the failure of American capitalism labor unions offered a

countervailing force both economic and political Industrial democracy re-enforced

political democracy and so unions were seen especially by the Roosevelt

Administration as important pillars of the American identityrdquo

Labor unions are also extending cooperation in Sustainable Development

According to Conference on Sustainable Development (2001) trade unions want to

cooperate with local and national governments international agencies and other Major

Groups to bring about patterns of decision-making that are consistent with the goals

of sustainable development (CSD 2001)

About Europe Knox (2004) wrote that strikes are rare in Germany and in Volks

Wagens 67-year history there has never been a strike only warning demonstrations to

pressure management Therefore in Germany working days lost to strikes run about

five per 1000 employees a year vs about 43 days in the United States But there have

been several strikes in Germany and elsewhere in Europe in recent months as workers

protest company demands for longer workweeks for the same or less pay The

demonstrations however have been short-lived and the unions usually have backed

down against the threat of layoffs or job relocations Therefore in recent contracts

unions cooperated and gave several concessions to employers such as at Karstadt

Quelle a big retailer in Germany trade unions agreed to a three-year wage freeze in

exchange for a promise the company would cut 5500 jobs through attrition not firing

Similarly in France workers at a Robert Bosch car parts factory voted to work an

extra hour a week without pay to stop the car components company from moving the

work to the Czech Republic

50

25 STRATEGIES AND TACTICS OF UNIONS

For the achievement of objectives of securing benefits for the workers and

solution of their problems unions adopt peaceful and violent means and succeed when

they have strength or fail in their struggle if they have no strength Numerous

researches have highlighted it

Jose (2000) is of the opinion that the unionrsquos capacity to influence depends on

their strength and support among the unionized and non-unionized sections of society

Bryson (2001) opined that the employer and employeesrsquo perception of

legitimacy of union in representing workers interest is influenced by higher union

density and where unions represent most of the workforce they can represent workers

interest with a strong voice

Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos

view large and centralized unions are more functional and influential than fragmented

unions

251 Source of Strength of Unions

Thomas (1999) is of the view that trade union organizations largely derive

their characteristics heritage identity and future strategic options from the parameters

that are set by the country in which they function Jose (2000) expressed that union

success depends on its capacity to incorporate workers rights and interests into

legislation or other regulatory instruments of the labor market For building

institutional capacity the following objectives have been prominent on the agenda of

unions (i) legislative provisions guaranteeing job security unemployment insurance

and special benefits on termination of employment and social security providing for

health care and pension schemes (ii) multi-employer agreements on employment

wages working conditions hours of work and non-wage benefits of workers (iii)

ability to influence economic and social policies through consultation and dialogue

with employers and public authorities

51

2511 Unionsrsquo density and their strength to effect

Jose (2000) wrote that labor legislation collective agreements social security

and minimum wages already in place are clear indicators of the strength and influence

of trade unions They reflected a capacity to influence public opinion and mobilize

action in support of the demands of their constituents In developing countries notably

in Asia unions have had significant achievements in maintaining or upgrading

statutory safeguards on employment and working conditions Nonetheless such gains

are mostly restricted to workers in the formal sector

But to cast influence the unions should be stronger and unions can be stronger

if they have a minimum density called threshold density

Aidt and Tzannatos (2001) are of the view that Industries with high overall

union density tend to have a higher wage markup Mishel and Walters (2003) found

that 30 to 40 is the minimum level of unionsrsquo density to produce any threat effect

Therefore the unionization of 20 in a particular industry may have no impact but

40 unionization may be sufficient to make employers aware of union organizing and

union pay and practices Unionrsquos presence of 60 to 70 may provide as strong a

threat or ability to set standards as unionization of 80 or more Therefore unions

can put a greater effect when density is higher

252 Peaceful Means of Achieving Objectives

Unions adopt peaceful means like negotiation reconciliation arbitration and

suits in the courts as well as violent means like tension strikes and processions for

achieving objectives of securing benefits for workers

In Japan trade unions have achieved improvement through collective

bargaining on pay working hours fringe benefits and in house welfare programs

Unionsrsquo efforts have become more important in recent years (Inoue 1999)

Among the peaceful means of obtaining objectives is Collective Bargaining

Jose (2000) reported that the value of collective action initiated by unions for attaining

common objectives is now widely recognized by a broad spectrum of interest groups

52

But unions have moved from collective bargaining to voice in continental Europe and

Japan due to high density of unionism There is growth of trade unions from the

collective bargaining function towards a role dominated by voice and representation of

workers The broad membership base which unions commanded and the equitable

distribution which they promoted in major sectors and enterprises strengthened the

position of unions giving them more power to bargain or collaborate and to derive

successful outcomes

253 Violent Means

When the peaceful means are not successful in achieving the objectives then

unions go on strikes Unions have resorted to this option according to following

researches

Colman (2000) wrote about USA that in 1824 women and men in a textile

factory in Pawtucket Rhode Island led the countryrsquos first strike demanding the owner

to reverse his decision to increase work day by one hour and cut their wages After

four years women went on strike in Dover New Hampshire demanding the

elimination of ban on talking at work and fine to employees 125 cents for being one

minute late In 1831 1600 women tailors in union of tailorsrsquo society in New York

struck for higher wages In 1834 in Lowell Massachusetts over 800 looms and

spindle operating women in the textile mill called a strike to protest wage cut

In Israel Before 1995 the famous labor union Histadrut seldom resorted to

general strikes in the public sector but since July 1997 The New Histadrut has

called three extensive strikes In July 1997 strikes were of government owned

corporations in December 1997 and in September 1998 the entire public sector went

on strikes During the strike in September 1998 the threatened closure of Ben-Gurion

International Airport contributed to reaching an agreement (Nathanson and Associates

1999)

CLR reported that in June of 2000 workers at the Duro (a gift bags

manufacturing firm) plant in Rio Bravo (Mexico) went on strike to establish an

independent union and forced the reinstatement of their elected leaders who were

53

illegally fired as a result of strikes Mexican government officials in August 2000

granted official registration as first independent union to the Duro workers (Carty

2003)

Unions weakened due to effects of Multi National Companies and

Globalization According to UNDP (2000) report conventional weapons of strikes

boycotts and demonstrations became useless because of emergence of MNCs and

Globalization unionrsquos power has weakened In the past labor groups could combat

with economic power of employer by seeking redress at the national level appealing

to sympathetic politicians and government officials to enact protective labor

legislation or alternatively labor unions could resort to offensive strategies like

strikes boycotts and demonstrations Unions could rely on this power because capital

in the past was immobile but in present era if these techniques are exercised capital

will move across the borders therefore the labor unionrsquos conventional weapons

strikes boycotts and demonstrations have became ineffective and unions have been

rendered weak

26 CORRUPTION OF UNIONS

Though unions exerted efforts for securing benefits gaining respect and

building a fearless atmosphere for their workers but unionsrsquo history is also plagued by

corruption which has been brought to light by following researches

261 Corruption and Selfishness of Officials

Ware (1935) wrote that labor leaders in USA are trade unions officials and

they have been accused of the complete unconcern for any worker but the members of

their own craft union interest in holding their own job a close association and

cooperation with employers in dealing with industrial problems and racketeering

For unions in Pakistan Khan (1992) expressed that the numerical increase of

trade unions leads to personal rivalry of union leaders competing for command over

small unions The trade unions leaders fight among themselves instead of fighting

54

against management or government and every leader is status seeker caring more for

his own prestige and image than to cause of common worker or unionism

Pencavel (1995) opines about union pluralism that a policy permitting the

formation of more than one union per enterprise will lead to disputes and rivalry

among unions He quoted the example of the situation in the Indian sub-continent

where the strength of unions is sapped through disputes among themselves rather than

in bargaining with employers

Bezuidenhout (2002) narrated that in South Africa Industrial and Commercial

Workersrsquo Union (ICU) was also plagued by internal corruption and bureaucratization

According to a report of Weinstein (1996) in USA during two decades LIUNA

(Laborers International Union of North America) officials have recorded over 80

convictions for crimes ranging from racketeering to bribery extortion tax evasion

and even of attempted murder

Horowitz (1999) reported about USA that unionrsquos corruption is not a new

phenomenon but as government reports documented even in the 1920s among

construction trade unions in New York City a widespread corruption and racketeering

was also prevailing

262 Financial Corruption

Weinstein (1996) wrote the instances of unions financial corruption eg the

House Judiciary Committees Subcommittee on Crime (in USA) held hearings that

union official lent $100000 of LIUNA money to the Clinton Inaugural Committee

and in 1993 and 1994 the Laborers Political League (LPL) donated over $1 million to

Democratic Party congressional candidates During 1995 and the first quarter of 1996

the LPL has contributed $747000 to over 200 liberal congressional candidates

Weinstein and Wieglus (1996) expressed that unions keep the workers ignorant

from their rights for example Labor Secretary Robert Reich who frequently proclaims

the Clinton Administrations concern for workers rights told the AFL-CIO recently

that collective bargaining is not a privilege it is a right Yet the Administration has

55

cooperated with union officials to keep workers in the dark on their Beck rights They

further quoted example of AFL-CIO for the misuse of unionrsquos funds for political

campaigns as AFL-CIO has launched $35 million voter education project funded

mainly with mandatory union dues to defeat conservative members of the 104th

Congress

Horowitz (1999) brought in to light that the Federal Election Commission in

(USA) reported that soft donations by labor unions to national political parties

during the 1997-98 election cycle totaled some $8 million nearly all of it to the

Democratic Party

In the research report conducted in USA Sherk (2006) expressed that it is true

that union members elect their leaders but union leaders appear to pursue an agenda

disconnected from the concerns of their members Some unions are heavily involved

in political activism they spend their membersrsquo mandatory dues to elect candidates

favored by the union leadership which means union leaders pursue an agenda that

their members do not support Therefore several states have passed ldquopaycheck

protectionrdquo laws that require unions to obtain written permission from their members

before they can spend membership dues on political causes He further wrote that

unions received from their members annual dues averaging $125 per member in 2004

and used only a portion of that money to represent their members Americarsquos 10

largest unions used an average of only 30 percent of their dues to represent their

members and negotiate with employers and spent the other 70 percent on lobbying

political activities gifts grants overhead and compensation for their staff These

other activities might or might not reflect the priorities of the unionrsquos membership

Unions generously spend their membersrsquo mandatory dues on politics He quoted that

in 2005 a non-election year the AFSCME (American Federation of State and County

Municipal Employees) spent almost 20 percent of its budget on political activities and

lobbying The AFL-CIO spent 30 percent of its budget on the same causes In the 2004

elections both these unions gave over 97 percent of their donations to Democratic

candidates Despite of misusing members contributed funds union leaders do little to

inform their members of many of their activities and it is doubtful whether union

56

members would approve of many of the decisions of their leaders Misplaced union

priorities extend beyond six-figure salaries and comfortable retreats for union bosses

2621 Embezzlement examples

Horowitz (1999) quoted many examples of unionrsquos office bearers

embezzlement in his report such as Bernard Rubin president of South Floridarsquos

Laborerrsquos District Council was convicted in 1975 on embezzlement racketeering and

tax evasion He misappropriated more than $350000 in union funds Similarly in

April 1998 a federal court convicted Eileen Cibellis former longtime office manager

and fund administrator for the Bloomfield New Jersey-based District Council 10 of

the International Brotherhood of Painters and Allied Trades for embezzling more than

$400000 from union funds There are other examples such as Carol Sue Fisher a

former bookkeeper for the local Paintersrsquo union in Evansville Indiana in 1992

pleaded guilty to embezzling some $135000 from the union fund John Ducey the

former financial secretary and business manager of the Carpet Linoleum and Resilient

Tile Layers union received a prison sentence for embezzling more than $51000 A

federal jury of embezzling union funds found George Osley Jr secretary-treasurer of

Laborers Local 872 in Las Vegas guilty of embezzlement of unionsrsquo funds The

National Maritime Union (NMU) a representative of some 2000 unlicensed seafarers

working on US flag commercial ships deserves special mention as over the years it

has served as a private bank for its leaders In January 1997 NMU President Louis

Parise Sr had to resign and sever all connections to the union following his

conviction in federal court on racketeering and embezzlement to the tune of more than

$700000 Robert Hickerson former business manager of Local 919 in Quincy

Illinois in 1982 was sentenced to three years in prison for embezzling union funds

and hiring vandals to smash more than $250000 worth of equipment owned by non-

union contractors In Lancaster NH Paul Wilson former treasurer of United Paper

workers Local 61 in 1993 was sentenced for theft of more than $67000 in union

funds This year Robert Kellas a former official of an amalgamated Transit Union

local in Bellingham Washington pleaded guilty to embezzlement of up to $120000

from the union over a four-year period These were few examples otherwise report has

numerous other events worthy to be mentioned but they would render the thesis very

57

lengthy Horowitz in his report wrote for different types of unionrsquos corruption in USA

and quotes numerous events eg ldquoIn New York City in 1995 federal investigators

discovered that around $8 million had vanished from the pension fund of Teamsters

Local 875 Local 875 had a long history of corruption in the previous 25 years five of

its officers and financial advisers were convicted of embezzlement or accepting

payoffs to keep labor peacerdquo He further wrote ldquoFor good measure the AFL-CIO in

1957 expelled the Teamsters for corrupt practices in the light of widely-publicized

hearings before Government Operations Committee headed by John McClellan

Arkansas Democrat in the Senate

Sherk (2006) in his report about American unions also quoted examples of

suspected incomes of unionsrsquo leaders such as Gerald McEntee president of the

American Federation of State and County Municipal Employees earns $580000 a

year from the dues paid by his unionrsquos far less compensated members The president

of the National Education Association earns $439000 a year which is almost ten

times what the average teacher earns It means union elected leaders earn salaries

several times larger than those paid to members of Congress Unions also spent over

$7 million in 2005 to hold conferences and workshops at resorts including the

Pheasant Run Resort amp Spa near Chicago and the Palm Springs Riviera Resort in

California a use of funds which also may not reflect their membersrsquo priorities Sherk

further quoted that unions pay for political campaigns from members contributions

and Supreme court in a suit ldquocommunication workers versus Beck (1988)rdquo established

a precedent that workers can not be forced to donate to political causes and are

entitled to demand the refund of the portion of their dues spent for political cause but

unions erected roadblocks in front of the workers who wanted to exercise their Beck

right

263 Unionsrsquo Officers Monopoly

Union officials enjoy what amounts to a monopoly and these union

monopolies shielded from competition provide them lax from accountability toward

the people they serve and individual worker or a group of workers demanding

accountability from their union may be risking their jobs or safety Union funds to pay

58

nonexistent employees is a common way of rewarding friends at the expense of

dues-paying rank and file Horowitz (1999)

Brohawn (nd) is of the view that in some cases it can be fairly said that

unions have empowered their leaders not their members

Ghayur (1996-b) wrote that in Pakistan the labor leaders are feudal minded and

they never bothered to make their action accountable to the members

264 Bribes (Extortion and Pay-off)

Horowitz (1999) Revealed in his report with example that the Construction

trade unions are notorious for extortion from contractors by threatening labor

problems such as work slowdowns disruption sabotage or assault In the 1980s a

civil suit against Local 6A of the Cement and Concrete Workers of the Laborers

International Union of North America (LIUNA) alleged that the local its district

council their officers and certain organized crime figures extorted one percent of the

contract price from ready mix contractors by threatening labor problems For a while

that bought labor peace FBI investigation of building trades practices in Long Island

led to the indictment of the president of the District Council of Carpenters and five

other union officials connected to organized crime families for extorting more than

$100000 from a drywall contractor In Philadelphia Joseph Fiorelli founder and

former boss of Local 1955 of the Drywall Finishers Union was sentenced to more than

10 years in prison on extortion payoffs from contractors theft of union funds and

racketeering charges Fiorelli had extorted payments from 25 contractors from 1967 to

1991 Contractors testified that in exchange for their payments Fiorelli gave them

labor peace and allowed them to sometimes use nonunion workers and to delay or

avoid payments to the unions health and welfare fund

About Bribery for securing jobs Horowitz expressed that unions protect their

members from competition by non-union members But when a contractor or

employer decides to hire non-union labor the unscrupulous unions make life

uncomfortable for contractors until they hire union labor or allow the contractor to

hire nonunion labor--if the price is right In 1981 Louis Sanzo president of Local 29

59

of the Blasters Drill Runners and Mines Union in Queens NY affiliated with

LIUNA and the others took a combined $400000 in payoffs from construction firms

to buy labor peace The owner of a Florida-based construction firm said he tried to get

out of the deal but Sanzorsquos men threatened to kill him his wife and three children

The contractor would say in his bid that he needed 30 men and he would be paid for

30 men by the people who hired him to do the job But then Local 29 would send over

only 15 men They could keep the rest of the money

265 Sound Labour Relations at the Workplace no Important Concern of Employers and Unions

Unions some times do not take interest for sound labor relations - especially at

the workplace De Silva (1997) wrote that in many South East Asian countries and

republic of Korea sound labor relations have not been an important concern of

employers and unions

Bacon (2005) expressed that in USA George Meany and Lane Kirkland AFL-

CIO leaders treated unions as a business representing members in exchange for dues

while ignoring the needs of workers as a whole

CHAPTER 3

HISTORY AND LEGAL FRAME WORK OF UNIONIZATION IN PAKISTAN

According to Khan (1992) the Industrial Relations is an art It is an art of living

together for purpose of production Industrial Relations System is a sub system of the

society and studies the web of rules and regulations that binds the workers and

managers in a working group In industrial relations three actors play their part

employer through management workers through unions and consumer through state

However this system varies from country to country or region to region

ILO (1999) categorized the countries according to the degree of influence

exerted by trade unions on government policies In some countries unions have a

decisive voice and they can influence social pacts as well as the human rights agenda

through trade policies In other countries governments can ignore the unions without

incurring major problems so in these cases unions have little influence on social

policy or human rights concerns Therefore two different patterns of unionsrsquo role

emerge reflecting regional differences In developing countries trade unions are

searching for a new identity while in the industrialized countries they are trying to

gain lost ground through membership campaigns

Thomas (1999) asserted that trade union organizations largely derive their

characteristics heritage identity and future strategic options from the parameters that

are set by the country in which they function

Similarly Wong (2000) wrote that the industrial relations system in each

country is rooted in different historical political socio-economic cultural and

environmental contexts and it makes it difficult to replicate one system in another

context So this research is focused on the study of the role of Pakistani Labor Unions

working in quite different political cultural and legal environment

61

Khan (1992) expressed that every industrial relations system must fulfill

function of defining the rights responsibilities and objectives of the government

employers and employees and establishing power structure among them controlling

and channeling the responses of managers and workers that arise due to

maladjustment frustration dislocation and insecurities inherent in industrial process

and establishing a net-work of rules These rules include things like recruitment

commitment level of compensation the wage structure and procedure for settlement

of disputes

In Pakistan the system of industrial relations is legalistic and government is a

regulator and has framed out laws for industrial relations and unions are formed and

function in the same framework of laws These laws are of two types First type of law

concerns with union making and that is IRO 2002 and second type is of laws granting

rights to which unions have to get implemented and exact the rights granted therein

for workers Besides this unions have to struggle for the rights which are not given yet

in law and also have to get the laws promulgated for grant of these rights The history

of emergence and evolution of legal framework in Pakistan is given below

31 HISTORY OF LEGISLATION

According to Shafiq-ur-Rehman (2003) the history of Labor Legislation dates

back to 1875 when the government of Bombay appointed a Factory Commission on

whose recommendations the Factories Act 1884 was promulgated Committee of

Inquiry was appointed in 1906 and Factory labor commission in 1907 and upon their

recommendations Indian Factories Act 1922 was passed and subsequently Trade

Union Act 1926 and Trade Dispute Act 1929 were also passed

The laws governing the formation of unions in Pakistan have passed through a

process of evolution during last eighty years Their chronological evolutionary steps

are reported below

62

311 Laws Permitting Establishment of Unions

In 1914 in Indo-Pak subcontinent there were more than a million workers

employed in 2936 factories besides a large number of workers employed in railways

mines plantation and government departments who were originally peasants pushed

towards factories by poverty After World War - I (1914-1918) the economic

conditions of these workers went worse as wages could not keep pace with rise in

prices There was acute distress and discontent among the workers but the industries

developed over the period were experiencing prosperity This led them to form unions

to demand increase in wages

In 1919 ILO was established and that gave recognition as well as big support

to trade union movements Consequently a substantial number of unions were formed

in subcontinent of Indo-Pak (from which Pakistan parted in 1947) in 1920s but many

of them were temporary like strike committees being formed at the outbreak of

strikes and disappeared with its end The Indo-Pak Legislative Assembly passed a

resolution in 1921 in favor of registration and protection of trade unions As a result of

this resolution the legislature passed the Trade Union Act 1926 This act recognized

the workers rights to organize and form trade unions and laid down that any seven

persons or more forming trade unions could seek their registration of trade union and

this registered trade union was not to be considered a body unlawful in restraint of

trade However this law laid down penal clauses for violating any of the restrictions

imposed or for providing false information to the Registrar of Trade Unions After

independence in 1947 the government of Pakistan adopted the Trade Union Act 1926

and it remained in enforcement as major piece of legislation up to 1960 No doubt this

law has provided protection to the workers to combine for improving their

employment conditions and from being considered anti-state activity But the law has

a serious draw back that it was not providing unions the recognition of bargaining and

protection to workers from employersrsquo discrimination for union activity In 1960

Trade Union (Amendment) Ordinance 1960 was passed to amend and improve the

previous Act According to new law the recognition of trade union on employer was

obligatory and registered union was granted the right to negotiate with the employers

in matters concerning employment un-employment the terms of employment and the

63

conditions of work of all or any of its members The employer was bound to receive

and reply to letters from and to grant interviews to executives of union in connection

with any such matter The employer could with draw his recognition but with the

permission of labor court The previous maximum 50 percent limit of number of office

bearers from outsider was reduced to 25 percent in this law The trade unions were

required to maintain subscription register account books and membership list In this

law clauses for ldquounfair labor practicesrdquo both on the part of unions and employers and

the penalties in cases of breach of these clauses were also added Another ordinance

under name of Trade Unions (Amendment) Ordinance 1961 was passed to make

amendment to debar outsiders from becoming officer of union unless they were full

time paid employees of that trade union After the promulgation of Constitution of

1962 all the labor matters including legislation were transferred to provinces (East

Pakistan and West Pakistan) So a further ordinance ldquoWest Pakistan Trade Unions

Ordinance 1968rdquo was passed that made amendment to enhance powers of ldquoRegistrar

Trade Unionsrdquo empowering him to interfere with the conduct of unions even after its

registration to order an inquiry in the matters of unions if he thought that the funds of

a union were likely to be misappropriated The registrar could ask the union to curtail

the number of office bearers if it seemed disproportionate to the total number of its

membership Without the permission of the Registrar the employer was not to

discharge or dismiss or otherwise victimize an office bearer of trade union during the

pendency of its application for its registration The registration certificate could be

cancelled if the union participated in an illegal strike or go-slow A federation with

membership of at least seven registered unions could seek registration The registered

federation could have 50 percent of its office bearers from among the workers who

were not engaged industry or industries with which federation was concerned This

ordinance restricted the eligibility only to those unions which had minimum

membership of workers 10 percent of the total workmen employed or 100 whichever

is less The age to be office bearer of union was 21 years for employees and 25 years

for outsider Khan (1992)

64

312 Laws for Settlement of Disputes

Before IRO 1969 there were different sets of laws permitting union making

and for settlement of disputes The foremost law pertaining to settlement of

employers employee dispute was Employers and Workers (dispute) Act 1860 This

act provided for the determination of disputes relating to wages of workers employed

in the construction of railways canals and public works and breach of contract by

workmen was a criminal offence The cases of dispute were handled by magistrates

Later on Trade Dispute Act 1929 was enacted which provided for ad-hoc machinery

enabling the government to establish the Court of Inquiry and Conciliation boards

Industrial Dispute Act 1947 was enacted to provide hierarchy of institutions for

bringing out harmonious collective relations between the employers and the workmen

through work committees Conciliators board of conciliation Court of inquiry failing

which the settlement was arrived at by adjudication by a reference to an Ad-hoc

Tribunal The industrial establishments were classified in two categories Public

Utility Services and Non Public Utility Services Public Utility Services included any

Railway Service and section of an industrial establishment on the working of which

safety of establishment or workmen depended any postal telegraph and telephone

service any industry which supplied power water and light to public any system of

public conservancy or sanitation any undertaking establishment or installation

relating to defense services any service incidental to the operations of ports and any

such industries as transport coal cotton textile food stuff iron and steel as declared

by the government to be public utility service for a period of six months at a time

Industrial Dispute Ordinance 1959 changed industrial relations by further enlarging

the scope of term public utility services by including all types of industry later on

West Pakistan Industrial Dispute Ordinance 1968 was passed wherein provincial

government assumed the power to prohibit strike or lockout existing or apprehended

in public interest or for the maintenance of essential services or supplies (Khan 1992)

313 Industrial Relations Ordinance 1969

The Industrial Disputes Act (IDA) of 1947 was passed in April 1947 It made

no provision for procedures to determine the representative union what would

65

normally be a single bargaining unit Employers were under no legal obligation to

bargain with unions so there were no built-in incentives for either party to engage in

collective bargaining Therefore this right has been given in IRO 1969 The Industrial

Disputes Act 1947 also made it very difficult for the unions to call a legal strike

There were also problems in the Indian Trade Union Act of 1926 The Act allowed

any seven workers to register their trade union but made no provision for union

recognition (eg through a secret ballot procedure)

To remove the shortcomings of the labor legislation and address the workers

unrest because of political disturbance of ending years of regime of president Ayub

Khan and to create industrial harmony and peace government promulgated Industrial

Relations Ordinance (IRO) 1969 The objective of the IRO 1969 was to facilitate the

formation of trade unions and to provide simple procedure for their registration It was

primarily meant for regulating the employer employee relations and to determine

collective bargaining agent to arrange for the adjustment of conflicting interests by

collective bargaining to provide machinery (institutions) for just and equitable

settlement of disputes by conciliation voluntary arbitration and adjudication between

workers and employers with a right of representation by a registered trade union or

federation of trade unions or association of employees to prevent strikes and lockouts

and to provide relief of workmen in matters of employment relations

It was a comprehensive law and it consolidated the laws relating to

registrations of unions and laws relating to settlement of disputes Before this both

were dealt with different laws At different times establishments of unions were dealt

under Trade Unions Act 1926 Trade Union (Amendment) Ordinance 1960 Trade

Unions (Amendment) Ordinance 1961 and West Pakistan Trade Unions Ordinance

1968 where as trade disputes had been dealt under Employers and Workers (dispute)

Act 1860 Trade Dispute Act 1929 Industrial Dispute Act 1947and Industrial

Dispute Ordinance 1959

According to this law the formation of trade unions was expressly recognized

and there was provision for their registration A certified and duly elected registered

trade unions in industrial undertaking or an establishment could be taken as collective

66

bargaining agent and only collective bargaining agent could raise a dispute and take

bilateral negotiations within ten days of issue of charter of demand This law in

conjunctions with West Pakistan Industrial and Commercial (Standing Orders)

Ordinance1968 made it legally difficult and expensive to fire any worker and

developed a comprehensive measures relating to the terms and conditions of

employment and work procedure of handling grievances enforcement of discipline

and to regulate on the job relations within the establishment The IRO 1969 however

excluded the persons employed in Police Defence Services of Pakistan in the

Services and installation of Armed Forces and public services This Ordinance was

amended in 1971 to remove certain administrative difficulties amended twice in 1972

to insert provision of junior labor courts Amended in 1973 to allow 20 percent

workers participation in management and system of shop stewards was introduced

and a standing National Industrial Relation Commission (NIRC) was appointed Law

was amended in 1975 and a wage commission was created to determine the economic

disputes in banking industry and other financial institutions Again amended in 976 to

incorporate the principle ldquoone worker one unionrdquo to check the multiplicity of unions

to delete the provision of junior labor courts and to raise the strength of workers

representatives in Management Participation Committee to 50 percent Here the

power was taken to highest echelon through Joint Management Board To make the

works council to be a forum of joint negotiation law was amended in 1977 Final

amendment was made in 1979 This law has been repealed vide section 80 of IRO

2002

32 RIGHT OF UNIONIZATION

Right of unionization has been derived in Pakistan from UNO declarations

ILO conventions ratified by government of Pakistan and Constitution of the State

321 United Nationsrsquo Declaration of Human Rights

Articles 23 and 24 of the UNOrsquos Declaration are for workers favor besides

permitting the formation of labor unions (Wikipedia-b)

67

Article 23

1 Everyone has the right to work to free choice of employment to just and

favorable conditions of work and to protection against unemployment

2 Everyone without any discrimination has the right to equal pay for equal

work

3 Everyone who works has the right to just and favorable remuneration ensuring

for himself and his family an existence worthy of human dignity and

supplemented if necessary by other means of social protection

4 Everyone has the right to form and to join trade unions for the protection of his

interests

Article 24

1 Everyone has the right to rest and leisure including reasonable limitation of

working hours and periodic holidays with pay

322 ILO Conventions

To enable us to identify the basic union rights it is necessary to have a glimpse

of the International Labor Organization Conventions No 87 and 98

According to Convention No 87 workers and employers shall have full

freedom to organize themselves The organizations shall draw up their own

constitution and rules elect their leaders in full freedom and organize their

administration and activities without any interference by the government The

organizations shall not be dissolved or suspended by the administrative authority

which is the government

Government should impose no condition on the organizationsrsquo right to

establish or join a federation or confederation and to affiliate with international

68

organizations Granting of legal personality shall not involve restrictions on the above

rights Pakistan has ratified it on 14th February 1951

Under Convention No 98 it is the responsibility of the government to protect

workers against anti-union discrimination and victimization by employers and against

domination of workers organizations by any acts including financial contributions

The government should also establish machinery for the purpose of ensuring respect

for the right to organize Pakistan has ratified it on 26th May 1952 These rights

adopted by the ILO are more or less based on the lsquoUniversal Declaration of Human

Rightsrsquo Workers especially need these guarantees to protect themselves against

exploitation by employers who wield financial power and political influence

323 Constitution of Pakistan

The article16 and 17 of constitution of Pakistan have given a general right to

organize and form association to the workers

Article 16 is about freedom of assembly and says ldquoEvery citizen shall have the

right to assemble peacefully and without arms subject to any reasonable restriction

imposed by law in the interest of public orderrdquo

Article 17 is about freedom of association and says ldquoEvery citizen shall have

the right to form association or union subject to any reasonable restriction imposed by

in the interest of sovereignty or integrity of Pakistan public order or moralityrdquo

33 PRESENT ENFORCED LAWS

331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo

Presently trade unions are formed and function according to IRO 2002 This

ordinance was promulgated in 2002 to amend consolidate and rationalize the law

relating to formation of trade unions regulation and improvement of relations between

employers and workmen and avoidance and settlement of any difference or disputes

arising between them A summery of main provisions of this ordinance regarding the

right of unionization and protections given to unions their functioning functioning

areas and limitations in IRO 2002 is given here

69

1 It allows the formation and joining of trade unions to workers and formation of

association to employers (section 3) and allows these unions and associations

to join respective federations allows federations to join confederations and

these federations and confederations can affiliate with international

confederations (section 18) However this law restricts a worker to be a

member of more than one trade union at any one time Law also binds that

every collective bargaining agent union shall have to affiliate with any

federation at the national level registered with the National Industrial Relations

Commission within two months after its determination as collective bargaining

agent or promulgation of this Ordinance whichever is earlier

2 It specifies the registration process (section 4) requirements for registration

(section 5 and 6) cancellation of registration (section 12) and appeal against

cancellation (section 13)

3 It provides safety to office bearers of trade union from victimization in the

form of transfer discharge or dismissal for applying for registration (section

10) and fine up to 20000 rupees for violation (section 65)

4 It provides the facility of Collective Bargaining Agent to a single union if it

has members not less than one-third of the total number of workmen if there

are more than one unions then who wins the referendum (section 20) and

identifies the bargaining and non bargaining issues

In Pakistan Collective Bargaining has its own Perspective Shafiq-ur-Rehman

(2003) expressed that collective bargaining in Pakistan instead of the issue of

wage rise typically covers a much wider range of issues including pecuniary

terms of employment (such as non statutory allowances and benefits) and non

pecuniary conditions of employment including job security and working

conditions (such as safety of work place and methods of production)

5 To meet the expenses this law allows the unions to collect the subscription by

check-off (section 21)

70

6 It contains provisions about workersrsquo participation in the management of

establishment For this it permits the establishment of Joint Works Council

According to section 24 every establishment which employs fifty persons or

more shall set up a Joint Works Council consisting of not more than ten

members in which workers participation shall be to the extent of forty per cent

and the Convener of the Council shall be from the management and the

employers representatives shall be from amongst the Directors or their

nominees and the workers representatives shall be the office bearers of

collective bargaining agent The Joint Works Council shall deal the matters

like (i) improvement in production productivity and efficiency (ii) provision

of minimum facilities for the workers employed through contractors as are not

covered by the laws relating to welfare of workers (iii) promoting settlement

of differences through bilateral negotiations (iv) promoting conditions of

safety and health for the workers (v) encouraging vocational training within

the establishment (vi) taking measures for facilitating good and harmonious

working conditions in the establishment (vii) provision of educational

facilities for children of workmen

7 It defines industrial disputes and provides for negotiation between employer

and workers to reach settlement (section 25) conciliation in case negotiation

fails (section 26 to 29) Arbitration in case conciliation also fails (section 30)

and finally a court award binding on all parties (section 33) It also provides

facility of appeal in high court against labor courts awards (section 48)

8 It gives right of strike to workers and lock out to employers to press for their

just demands (section 31) and authorizes government to prohibit strikes in any

public utility service establishment (section 32)

9 It contains provisions about labor courts (section 44) their functions powers

procedure and awards (section 45 46 and 47)

10 It also provides provision about National Industrial Relations Commission and

its functions and powers for registration of industry wide unions and settlement

71

of their disputes (section 49 to 53) and dealing with unfair labor practices

(section 63 and 64)

11 It identifies unfair labor practices on the part of employers (section 63) and

unfair labor practices on the part of workmen (section 64) and penalties for

unfair labor practices (section 65)

It defines rights and duties of employers and rights and duties of workers

(Schedule II) as

Employers Rights

(a) Right to conduct business-The employer shall have the right to manage

control and use the property of his enterprise and conduct his business in any manner

considered appropriate by him

(b) Right to manage-The employer shall have the right to use available resources

including human resources efficiently and effectively in the best interest of the

enterprise

Employers Duties

(a) While exercising the right to conduct business and the right to manage the

enterprise the employer shall act in accordance with the law and shall comply

with the law faithfully

(b) The employer shall protect rights of the workers as guaranteed under the law or

secured to them by any award agreement or settlement in force

(c) The employer shall protect and safeguard the interest of his workers and take

measures within his resources for their socio-economic uplift and welfare He

shall create an environment congenial for enhanced productivity of labour and

maximum output of the enterprise

(d) The employer shall respect the right of the workers to employment wages

decent living and better quality of working life

72

Workers Right

(a) Right to work wage and welfare It is the right of a worker to work

according to the job assigned and to receive wages as per agreed terms and conditions

of employment and to such welfare benefits and safety measures as one is entitled to

according to law agreement settlement and award

(b) Right to freedom of association and collective bargaining and other rights

secured or guaranteed under this Ordinance and other laws Worker has inherent

right to trade unionism and collective bargaining and the right to enjoy the benefits

guaranteed to him under the law rules and regulations settlement award or

agreement

Workers Duties

(a) Worker will perform his duty as assigned by the employer or his

representative according to his best ability with due diligence care honesty

and commitment

(b) Worker will fully observe norms of organizational discipline

(c) Worker in exercise of his right will fully respect the rights of the employer

and will cooperate with him in the efficient performance of the business of the

establishment or enterprise as the case may be

332 Labor Laws Granting Rights

3321 Workmen compensation Act 1923

This act provides for the payment by certain classes of employers to their

workmen of compensation for injury or death by accident

3322 Factories Act 1934

It governs the working conditions of the industrial workers and consolidates and

amends the law made from time to time by provincial governments for regulating labor

73

in factories It is applicable to factories where 10 or more workers are working or were

engaged to work on any day of the preceding 12 months This legislation regulates

working hours paid holidays and conditions of employment of workers It also

provides for hygienic and safe working conditions and environment labor inspection

submission of various returns by employers penalties for violation of provisions of act

and employment of welfare officer by factories employing more than 500 workers

3323 Payment of wages Act 1936

This law defines wages and regulates the conditions of payment of wages to

workers It is applicable to workers employed in factories railways transport

plantation workshops and establishments of contractors According to this law

employer shall pay wages to workmen in the current currency on a working day before

the expiry of the tenth day after the expiry of the wage period and no wage period will

exceed one month

3324 The minimum wages Ordinance 1961

There was no law to provide for the fixation of minimum wages particularly for

large number of workers of smaller establishments who had no bargaining capacity

with employer With this consideration government of Pakistan Promulgated the

Minimum Wage Ordinance 1961 with the objective to create an institution to determine

minimum wage rates for different categories of workers in different industries

Consequently Tripartite Minimum Wage Boards were formed in all the provinces with

powers to examine the general price level ability of the establishment to increase

wages and other relevant factors for determination of minimum wages and refer them

to concerned provincial government

3325 Social Security Ordinance 1965

This law is applicable to all industrial and commercial establishments and

provides for a scheme of social security of insured employees and their dependents in

the event of sickness injury or death The employers pay contribution to the provincial

Social Security Institution at the rate of 7 of the wages of insured person

74

3326 The industrial and commercial employment (standing order) Ordinance 1968

This ordinance lays down the minimum terms and conditions of employment of

workers in industrial and commercial undertakings where 20 or more workmen are

employed or were employed during the preceding 12 months The ordinance provides

for payments of bonus group incentives schemes group insurance gratuity provident

fund termination and dismissal from employment redundancy re-employment of

redundant workers etc

3327 The companies profit (workersrsquo participation) Act 1968

This law is applicable to industries or establishments employing 50 workers or

whose paid up capital is Rupees 2 million or whose value of fixed assets is 4 million

Employers of these industries are required to allocate 5 percent out of their net profit

among the workers Any amount left over after distribution of the workers shares as

laid down under the rule is transferred to the Welfare Fund established under the

provisions of workers Welfare Fund Ordinance 1971

3328 The shops and establishments Ordinance 1969

It was enforced with effect from 30th June 1969 This ordinance was to amend

and consolidate the law relating to the hours of work over time weekly and festival

holidays annual casual and sick leaves time of payment of wages and other terms and

conditions of work and employment in shops and commercial industrial and other

establishments and matters connected therewith

3329 The minimum wages for unskilled workers Ordinance 1969

Government of Pakistan promulgated this ordinance in order to provide

minimum wages to unskilled workers of the industrial and commercial undertakings

employing 50 or more workers The minimum wages have been revised from time to

time Fixation of minimum wages during last fifteen years is given here

75

Period Minimum Wage in Pak Rupees

From Ist July 1993 1500-

From 1st July 2001 2500-

From 1st July 2005 3000-

From 1st July 2006 4000-

From 1st July 2007 4600-

From 1st July 2008 6000-

33210 Workers welfare fund Ordinance 1971

This law provides for establishment of workersrsquo welfare fund for providing

residential accommodation financing other welfare measure including training re-

skilling and investment in securities approved by government For this fund initial

contribution of 10 crores rupees (100 million) was made by Federal Government and

every industrial establishment having income of one hundred thousand rupees or more

in a year is required to pay 2 percent of its income in this fund

33211 Workers children (education) Ordinance 1972

This law provides the payment of Rupees 100- per annum per worker by

employer to the provincial government and government in return provides free

education up to matriculation level and thereafter in poly technique or vocational

institutes to the children of workers

33212 Employees cost of living (relief) Act 1973

Government promulgated Employees Cost of Living (Relief) Act 1973

applicable to undertakings construction industries factories mines road transport

services newspapers establishments The purpose of this law was providing payment

of cost of living allowance to workers to overcome the adverse effects of inflation on

their purchasing power It had been amended and improved with the passage of time It

76

was promulgated first time on 17th September 1973 and enforced from 1st August

1973 but later on re-enacted by parliament in December 1973 Initially parliament was

empower to amend the allowance from time to time but later on Ministry of Labor as

empowered to grant increases in the Cost of Living Allowance through notification

33213 Employees old age benefit Act 1976

This law provides for old age benefits to persons employed in industrial and

commercial establishments This law is applicable to industry and establishment

employing 10 or more workers Employers contribute 5 of the wages of secured

person employed to the Old Age Benefit Institution The male employees after

attaining 60 years and female after 55 years can receive monthly pension The

survivors of the employees are also entitled for this

333 Labor Policies

The Industrial Relation laws of Pakistan were gradually improved through

amendments in existing laws and enacting fresh laws so that provisions may become

compatible to the changing socioeconomic conditions of the country and any further

change in future It was done through labor policies Since independence five labor

policies have been announced by the government in the years 1955 1959 1969 1972

and 2002 which laid-down the parameters for the growth of trade unionism the

protection of workersrsquo rights the settlement of industrial disputes and the redress of

workers grievances These policies covered a broad spectrum of issues and envisaged

to provide for permanent transformation of laws to meet the expanding industrial base

of the country These policies also provided for compliance with international labor

standards ratified by Pakistan The effects of policies are reflected in the

metamorphosis that the labor laws underwent after the implementation of these

policies Here is a brief of these policies

3331 First policy (1955)

It was announced in August 1955 for achieving following objectives

i The growth of healthy unionism

77

ii Settlement of disputes through joint consultation

iii Protection of workers rights

iv Maintenance of industrial peace and harmony in labor management

relations

v Speedy settlement of industrial disputes through adjudication and

effective implementation of awards and

vi Welfare of workers and avoidance of their victimization and

exploitation

3332 Second policy (1959)

It was announced in February 1959 under following guiding principles

i Promotion of healthy unionism

ii Promotion of sound labor management relation

iii Provision of settlement of industrial disputes through peaceful means

iv Provision of social amenities as health education wages etc in

relation of work

v Implementation of ratified ILOrsquos Conventions and recommendations

vi Suitable means for reducing unemployment

vii Creating employment agencies and formation of employment

programmes

3333 Third policy (1969)

Third policy was announced in 1969This policy resulted in the introduction of

legislation guaranteeing freedom of association and the right to collective bargaining

in accordance with ILO Conventions 87 and 98 ratified by Pakistan A system of

78

equitable distribution of gains was put in place in the form of enactment of laws

relating to workers welfare and minimum wage of workers Salient features of this

policy are listed below

i- Measures to encourage the growth of trade unions

ii- Introduction of concept of collective bargaining agent

iii- Strengthening the scope of collective bargaining agent by giving rights

of strikes and lockouts to workers and employers respectively

iv- Extension of the principles collective bargaining of public sector

workers

v- Fixation of minimum wages of workers

vi- Institutional arrangements for minimum wages board

vii- Establishment of workers welfare fund for providing residential

accommodation etc to workers and

viii- Mechanism for settlement of industrial disputes

3334 Fourth policy (1972)

It was announced in 1972 As a result of this policy reforms in the system of

labor legislation were made which envisaged workers participation in the

management extension in the scope of labor laws enactment of laws relating to

employees old-age benefits workers children education introduction of statutory

bonus and group insurance schemes establishment of quasi-judicial body namely

National Industrial Relations Commission and the procedure for redress of workers

individual grievances

The guiding principles of this policy were

i- Emphasis on workersrsquo participation in management of industry

79

ii- Workers participation in the management committees work councils

and joint management boards

iii- Strengthening of work council

iv- Increase of workers share in companies profit from 25 to 5

v- Ensuring job security

vi- Bonus payment as statutory obligation of employer

vii- Speedy redressal of individual grievances through shop stewards

3335 Fifth policy (2002)

The draft of this policy was announced in 1999 but policy was approved in

2002 The principles objectives and action programme of the policy concentrate on

the creation of relationship of trust and cooperation between employer and employee

under the strategy of least intervention by the state A visionary approach adopted in

the Labor policy is a focus on dignity of labor fair balance of bargaining power and

productivity-based work culture with fair and equitable distribution of gains and

proceeds of the industry amongst employees entrepreneurs and the society at large

Principles Objectives and Initiatives of policy are

1 Promotion of Healthy Trade Unionism

Healthy trade unionism based on freedom of association and an effective

collective bargaining system is a pre-requisite for industrial peace productivity and

socio-economic uplift of labor An environment for growth of healthy and responsible

trade unionism will be created by encouraging responsible and representative trade

unions

2 The system of bilateral and tripartite social dialogue shall be strengthened and

streamlined to promote industrial peace and harmonious labor-management relations

Support to bilateral and tripartite mechanisms for policy formulation self-regulation

80

and peaceful resolution of disputes Bilateralism is the core element of the new labor

policy

3 Regulatory authority of government to be exercised only when bilateral

mechanisms fail to resolve disputes

4 Consolidation and simplification of labor laws Existing voluminous labor

legislation is overlapping in its coverage in several areas and anomalous in definitions

and scope The variety and complexity of labor laws has contributed adversely to

industrial relations system Need for rationalizationconsolidation of the existing laws

was acknowledged in this policy Therefore it was proposed to simplify and

consolidate these laws into following six basic laws relating to

1 - Industrial Relations

2 - Conditions of Employment

3 ndash Payment of Wages

4 - Human Resource Development

5 - Occupational Safety and Health

6 - Labor Welfare and Social Protection

5 Structural legislative changes and restructuring simplification and

minimization of Labor Judicial System to provide speedy justice in labor

sector

6 Promotion of employeesrsquo social security and social insurance programs and

improvement of labor welfare institutions namely Workers Welfare Fund

Employees Old Age Benefit Institutions and Provincial Employees Social

Security Institutions

Institutions responsible for social protection social insurance and labor welfare

need to be made fully autonomous and effective by restructuring their respective

81

management boards to ensure adequate labor and employer representation and to

strengthen their tripartite character Policy-making coordination and monitoring of the

functioning of these institutions will be entrusted to these tripartite boards exclusively

7 Progressive extension of labor laws and welfare measures to informal and

unorganized sectors

8 Special emphasis on workersrsquo children education

9 Combating child and bonded labor

10 Elimination of gender discrimination to reinforce gender equality

11 High priority given to occupational safety and health Policy provides for

enactment of law covering all workplaces and establishment of a National

Tripartite Occupational Safety and Health Council to meet the objective of

providing adequate safety and ensuring compensation to workers

12 In this policy importance of research in labor related disciplines and labor

administration necessity of training for improvement of the system and up-

gradation of the personnel have been acknowledged Policy provides for re-

organizing the existing research and training institutes and measures to

promote research and training activities on most modern lines to meet the

present day requirements

3336 Labor Protection Policy 2005

This provides protection to workers in five areas

1 Basic Rights

2 Working Conditions

3 The Working Environment

4 Social Security

82

5 The Living Environment

3337 Labor Inspection Policy 2006

Above policies and laws although important in providing guidelines and

legally enforceable standards mean relatively little unless arrangements are in place to

ensure the highest possible degree of compliance with legal provisions

Therefore government of Pakistan framed out Labor Inspection Policy 2006

after a consultation between government officials employersrsquo and workersrsquo

representatives throughout the country It is also in compliance with ILOrsquos convention

81 ratified in 1953 by government of Pakistan

This policy provides a new direction for the nationrsquos labor inspection systems

to enable them to respond to new approaches on a wide range of labor protection

issues It is integrated labor inspection policy having a modern view of labor

inspection placing the emphasis on prevention protection and improvement with

scope in following three areas

1 The terms under which workers are employed including wages hours of work

allowances leave and other benefits established by law or agreement

including protection against unfair dismissal and protection against

victimization

2 The conditions under which work takes place with regard to the safety of

workers and the action required to identify eliminate minimize and control

safety hazards concerning machinery and equipment work processes and

substances including chemicals

3 The general environment in which work takes place with regard to heat and

ventilation dust noise illumination and related factors likely to contribute to

illness or disease arising from the workplace

In this policy institutional arrangements are proposed for its implementation

Accordingly the Ministry of Labor Manpower and Overseas Pakistanis will establish

83

a National Labor Inspectorate as the central inspection authority to serve as the focal

point for the nationrsquos inspection activities However government supports the system

of self-inspection and self-reporting which means self-responsibility with managers

and workers assuming responsibility for compliance with standards concerning safety

and health and working conditions in the workplace Under this approach managers

and workers take the necessary steps to address and resolve their problems and

disagreements over labor protection issues Where the enterprise has a trade union

self-responsibility takes place through collective bargaining where managers and

workers come together and talk to resolve their differences with the outcome of their

discussions leading to a negotiated and legally binding agreement

These laws and policies pave way of granting rights and benefits to workers

but these are got implemented by the efforts of labor unions In some cases they fix a

minimum level of benefit and unions exert efforts to secure more than this For

example a level of minimum wage is fixed by government but workers receive more

than this Government fixed maximum weekly hours 48 but unions got them reduced

and 48 hours are only in one organization and in all other organizations are less than

this

CHAPTER 4 RESEARCH METHODOLOGY

41 THEORETICAL FRAME WORK

This research study is aimed at investigating the role of labor unions in HRD

by exerting efforts in Pakistanrsquos organizations for exacting benefits for workers from

employer or management motivating and pursuing workers to perform efficiently for

interest of organization If workers are not benefited properly they would be under-

developed being physically weak unsatisfied and de-motivated so will be inefficient

human resource for their organization With inefficient human resource no

organization can gain progress The efforts of unions in this research are restricted

with in the organizations only

If unions are securing benefits for workers then workers should be satisfied

with them and if unions are also serving the ends of employers then employers should

also be satisfied with their role so unions will be successful in their role playing

Success of unions in playing the role for development of human resource of

organizations will be estimated by measuring satisfaction of workers on unionsrsquo

efforts for securing benefits for them and also satisfaction of employers on unions for

motivating workers for better performance ie productivity or efficiency increase and

making harmony at workplace

411 Research Model and Variable Formation

In Industrial Relations when unions are exerting efforts for securing interests

of their workers and also motivate workers to do job dedicatedly for employers benefit

then both workers and employer are satisfied with union then unions are successful It

means unionsrsquo success (Su) is function of satisfaction of workers (Sw) and satisfaction

of employer (Se) This is expressed mathematically in the form of equation

85

Equation -1

[Su = f (Sw Se)]

Bernard (1998) is of the view that an areas joblessness helps to determine the

ability of workers and unions to get wage rises and it is difficult to secure gains when

unemployment threatens the livelihood of workers Holley Jr et al (2001) expressed

that the ability to achieve economic gains in the form of higher wages and improved

benefits is one of the important criterion workers use to gauge the effectiveness of

unions

Therefore in determination of the facts about role of unions or success one

variable used in this research is satisfaction of workers (Sw) on the efforts of unions in

securing benefits for them

For determining satisfaction of workers (Sw) on efforts of unions in securing

benefits for them 15 variable giving direct benefits to workers have been made base

These fifteen variables are showing unionsrsquo efforts for securing workers benefit

Satisfaction of workers is a moderating variable Because satisfaction of workers is

independent variables for purpose of determining unionsrsquo success (Su) as unionsrsquo

success depends on it but it further dependent on 15 variables for its own

determination

The satisfaction of the workers on the performance of unions in this research is

estimated by taking lsquocombine mean of 15 independent variables as shown in the

following equation (ie equation 2) It is a lsquocombine meanrsquo because values of these

fifteen variable have also been calculated as arithmetic mean of the data collected for

variables

86

Equation 2

SW = (Wris + Fbft + Jsec + Td + Linc + Wcon + Ot +

Hfac + Ced + We + Wdf + Prb+ Rfac + Top + Ir) 15

Where Sw is Satisfaction of Workers

Wris is Wag-Rise

Fbft is Fringe Benefits (bonus Allowances)

Jsec is Job Security

Td is Time Reduction

Hfac is Health Facilities

Ced is Children Education

Ot is Over Time

Wcon is Working Conditions

Linc is Leaves Increase

Prb is Post retirement Benefits Pension

Rfac is Recreation Facilities

Top is Training opportunities

Wdf is Wage Difference Reduction

Ir is Informing Workers about their Rights

We is Workersrsquo Education

15 is number of variables in this equation

In unionsrsquo HRD Model equation satisfaction of employers is also essential

and according to lsquoexisting problemrsquo of this research unions have been alleged and

there are misconceptions about them so satisfaction of employers is also to be

determined

87

For determining satisfaction of employers on efforts of unions in protecting

their interest motivating workers for increase of productivity or efficiency of workers

and workplace peace and harmony have been made base These are two variables

measuring unionsrsquo efforts for employersrsquo direct benefit Satisfaction of employers (Se)

is also moderating variable Because it is independent variables for purpose of

determining unionsrsquo success (Su) as unionsrsquo success depends on it but it further

dependent on 2 variables for its own calculation This is expressed in equation 3

Equation 3

Se = (Pin + Wph)2

Where Se is Employersrsquo Satisfaction

Pin is Workersrsquo Productivity Efficiency improvement

Wph is Work Place Harmony

2 is number of Independent variables in the equation

[Sources of variables Bernard (1998) Wong (2000) Holley Jr et al (2001) Aidt amp

Tzannatos 2001) Mishel and Walters (2003) George (2004)]

The conceptual frame work is illustrated in Figure 1

About these variables extensive literature references have been cited in chapter

two Concerned sections of every variable are given below

88

Variables Concerned Sections in Literature Review Page

Wris 231 Wag-Rise 21

Fbft 233 Fringe Benefits 25

Jsec 234 Job Security and Employment 26

Td 235 Time Reduction (Duty Hours) 28

Hfac 239 Health Care and Social Security 31

Ced 2314 Children Education 39

Ot 236 Payment of Over Time 29

Wcon 238 Working Conditions 30

Linc 237 Paid Leaves 29

Prb 2310 Post retirement Benefits (Pension) 33

Rfac 2313 Recreation and Social Services 37

Top 2311 Training Opportunities 34

Wdf 232 Reduction in Wage Inequality 24

Ir 2315 Workers Awareness 39

We 2312 Workersrsquo Education 36

Pin 241 Productivity Efficiency amp Profitability 39

Wph 242 Work Place Harmony amp Cooperative Role 46

89

Figure 1 Showing sequence of variables effect

Information of rights

Worker Education

Training Opportunities

Recreation Facilities

Post retirement Benefit

Children Education

Health Facilities

Working Conditions

Over Time

Wage Rise

Fringe Benefits

Job Security

Leaves Increase

Time Decrease

Productivity Increase

Workplace Harmony

Employerrsquos Satisfaction

Workerrsquos Satisfaction

Unionrsquos Success

Wage Differences

90

412 Research Hypotheses

The null hypothesis depends on 17 variable hypotheses (H1 to H17) to be

proved true so before testing null hypothesis it is essential to test these variable

hypotheses

Hypothesis 1- Unions did not exert efforts for wage rise of workers

Hypothesis 2- Unions did not exert efforts for fringe benefits like bonus and

allowances of workers

Hypothesis 3- Unions did not exert efforts for Job Security of workers

Hypothesis 4- Unions did not exert efforts for Time decrease or offer

resistance against time increase of workers

Hypothesis 5- Unions did not exert efforts for exacting health facilities

Hypothesis 6- Unions did not exert efforts for workers education facilities for

children of workers

Hypothesis 7- Unions did not exert efforts for Overtime payment for over

working

Hypothesis 8- Unions did not exert efforts for better working conditions

Hypothesis 9- Unions did not exert efforts for Leaves increase or offer

resistance against leaves decrease

Hypothesis 10- Unions did not exert efforts for post retirement benefits like

pension

Hypothesis 11- Unions did not exert efforts for arranging recreation facilities

Hypothesis 12- Unions did not exert efforts for arranging training opportunities

Hypothesis 13- Unions did not exert efforts for decreasing wage inequalities

91

Hypothesis 14- Unions did not exert efforts for informing workers about their

rights

Hypothesis 15- Unions did not exert efforts for workersrsquo education

Hypothesis 16- Unions exerted no efforts for motivating workers to increase

productivity

Hypothesis 17- Unions exerted no efforts for workplace harmony

On the basis of above Variablesrsquo Hypotheses the null hypothesis has been

developed If the above statements are proved true then null hypothesis will be proved

true otherwise alternate hypothesis will be accepted

Hypotheses Statement

Null Hypothesis H0 Unions are not beneficial bodies in industrial relations

for HRD

Alternate Hypothesis HA Unions are beneficial bodies in industrial relations for

HRD

42 POPULATION AND SAMPLING

Labor unions of public and private sector organizations their members office

bearers of the unions employers or management or their representatives and union

non-member temporary employees of Pakistanrsquos organizations are population for this

study

The selection of sample was completed in two stages In first stage

Organizations to be studied were sampled and in second stage individuals to be

interviewed (respondents) were sampled

421 Stage-lsquoIrsquo Sampling of Organizations

Due to limitations of access to all the unions only the organizations of

Islamabad and Rawalpindi (twin cities) being capital territory were targeted for

92

sampling Because the Head Offices or Head Quarters of almost all national level

countrywide organizations are situated in the Islamabad Therefore samples of big

public semi public and private organizations having their head offices in Islamabad

the federal capital of the country and some private institutions have been picked

These organizations have different activities such as manufacturing exploring oil

refining printing and publishing telecommunication telecasting town planning and

rendering municipal services power supply gas supply and banking (see appendix D-

1)

422 Stage-lsquoIIrsquo Sampling of Respondents

From sampled organizations the office bearers of CBA unions as unionsrsquo

representative Human Resource officials as management or employersrsquo

representative permanent workers and contract temporary workers were sampled

4221 Sampling of union office bearers

For union views about unionrsquos role respective President or General Secretary

were interviewed from each CBA union General Secretary or President were sampled

because of being most influential and aware about unionrsquos working and performance

their fully engagement in negotiation with management comparatively more dealing

with workers and well awareness with unionsrsquo matters and problems (appendix A-11)

4222 Sampling of permanent (Unionized) workers

For the view point of workers who are the actual partners of the activity and on

whose behalf and for whose benefit unions are formed thirty to seventy workers were

randomly picked from each organization in their head offices different sub offices or

branches or field offices of the organization and personally interviewed by the

researcher on the designed questionnaires (appendix A-1 to A-10)

93

4223 Sampling of management

For management or employers views point about role of labor unions

respective human resource officials having official interaction and dealing with unions

were interviewed from each organization (appendix A-11)

4224 Sampling of temporary (Non-unionized) workers

Ten temporary workers who were not members of union were also randomly

picked and interviewed from organizations except PCP where no temporary worker is

employed

Sampling details of permanent and temporary workers are in appendix D-2

43 DATA COLLECTION INSTRUMENTS

Questionnaires were used as research instruments for data collection

431 Questionnaires and their Structure

Four questionnaires were framed (see appendices G1 to G-4) First for Office

Bearers of the unions (Questionnaires-1) second for Permanent Workers of

organizations (Questionnaires-2) third for Employers (Questionnaires-3) and fourth

for Temporary Workers not covered by unions (Questionnaires-4)

Questionnaire 1 2 and 3 comprise all 20 questions designed in the alignment

with research questions variables Questionnaire 4 comprises only 10 questions

In questionnaires 1 2 and 3 first 17 questions are common In questionnaire-1

from office bearers of union first fifteen questions are about their efforts for direct

benefits of workers such as 1- Increase of workers Wages 2- for any Fringe Benefit of

workers 3- for Job Security 4- for Duty hoursTimings 5- for increase of workers

Leaves 6- for payment of Overtime to workers 7- for improving Working Conditions

8- for Health care of workers and their families 9- for facilities provided for

Education of workers Children 10- for Post Retirement Benefits of Workers such as

pensions 11- for Recreational Facilities for workers 12- for Training facilities for

94

workers 13 is about Unionsrsquo efforts for decreasing workers officers Wagesalary

difference 14- is for unionrsquos efforts for informing workers about their Rights as

worker and 15- is about unions efforts for arrangements for workers education These

are questions giving direct benefit to workers

First these questions were asked from unionrsquos office bearers that what they did

for benefit of workers It is unionsrsquo claim of efforts exerted and the same questions

were asked in second questionnaire from workers whether unionsrsquo claim is right or

false and workers answer is to certify unions claim of efforts and satisfaction level of

workers will be a measure of unionsrsquo efforts In the third questionnaire the same

questions were asked from management whether unionsrsquo officials have really resorted

to management for gaining benefits for workers from management and answer of

management will be an evidence supporting or denying unionsrsquo claim

Two questions 16 and 17 are about unionsrsquo efforts for the benefits of

organization or employer as 16- efforts to increase workers Productivity Efficiency

and 17- is about unionsrsquo efforts to increase workplace Harmony

First these questions were asked from Unionrsquos office bearers that what they did

for benefit of employer or management actually it is their claim and the same

questions were asked in second questionnaire from workers whether unions claim is

right or falsersquo about exertion of unionsrsquo efforts and workers answer is an evidence for

confirming or falsifying unionsrsquo claim of efforts In the third questionnaire the same

questions were asked from management whether union motivates workers to benefit

employer (by improvement of productivity or efficiency of workers and work place

harmony) and what is satisfaction level of management on unionsrsquo efforts Answers of

management will certify unionsrsquo claim and its satisfaction level will be a measurement

of unionsrsquo efforts

In first questionnaire other three questions are general as 18- is about existence

of Work Council in the organization 19- is about unionsrsquo signing of charter of demand

and 20- is about provision of any training to office bearers as unionist by any agency to

conduct unionrsquos matters

95

In second questionnaire question 18 is about essentiality of unions 19 is about

inter union relations if there are two or more unions in the organization and question 20

is about comparison of unionsrsquo strength or weakness over the passage of time

In questionnaire lsquo3rsquo first 17 questions are common to questionnaire 1 and 2

While questions 18- is about existence of Work Council in the organization 19- is

about union signing charter of demand 20-is about Union acceptance of any wage cut

in difficult financial days of the organization for its benefit

Questionnaire lsquo1rsquo provides information about unionsrsquo claim of efforts exerted

for the benefits of workers as measured by variables eg wage rise fringe benefits job

security time reduction leave with pay payment of over time working conditions

health facilities children education facilities pension post retirement benefits

recreation facilities workersrsquo training decrease of wage salary difference of workers

and officers informing them about their legal rights and workers educational

opportunities It also provides information about efforts of unions for benefit of

organization or employer measured by the variables like their contribution for

improvement of productivity and efficiency and work place harmony By responding

these questions unionrsquos representative claim their efforts and struggle for securing

interest of employees and employer which is proved or disproved by the responses of

workers in questionnaire 2 and by management in questionnaire 3

Questionnaire 2 provides information about the responses of workers about the

claims of union office bearers about their effort for betterment of workers as measured

by variables eg wage rise fringe benefits job security time reduction leave with

pay payment of over time working conditions health facilities children education

facilities pension post retirement benefits recreation facilities workersrsquo training

decrease of wage salary difference of workers and officers informing them about

their legal rights and workers educational opportunities In this questionnaire workers

confirm or reject the unionsrsquo claims of exerting efforts for workers betterment and

stand witness for unions claim of exerting efforts for benefit of employer like

motivating for improvement of productivity and efficiency work place harmony In

this questionnaire permanent workers have been interviewed

96

Questionnaire 3 provides responses of management about the same 17

variables showing contribution of unions for benefit of employer by improvement of

productivity and efficiency and work place harmony (question 16 and 17) besides

showing management responses on questions about the benefit of workers In this

questionnaire employer or managementrsquos representative confirms or rejects the

unionrsquos claim of exerting efforts for the benefits of organization (questions 16 and 17)

and stand witness for unions claim of struggle for workers benefit (questions 1-15)

because when ever they seek any benefit for workers they have to demand it from

management Here heads of HR departments or members of management and senior

officials who have to deal with unions or unionized employees have been

interviewed because unions negotiate to them for securing benefits for workers

In fourth questionnaire temporary workers (non members or non covered

employees) provide the data about the variable of workers interest eg wage rise job

security time reduction improvement of working condition children education

facilities health facilities leave with pay bonus payment overtime payment effects

of unions efforts on temporary workers and essentiality of unions etc have been found

to know the difference between facilities of unionized and non unionized employees

Questions in these questionnaires regarding variables were designed to get

response in two forms I- Yes and No and then the satisfaction level of the respondent

on the provision of respective benefit Unions representatives in Questionnaire-I reply

all the 20 questions in Yes or No

Workers in Questionnaire-2 reply all the questions regarding 15 variables

(questions 1 to 15) measuring unions efforts for securing their benefits in Yes or No

and also by expressing their satisfaction level on five points scale ranging from very

unsatisfied to very satisfied but reply as witness in Yes or No by endorsing or

rejecting for questions (16 and 17) regarding management benefits as witness

Management representatives in Questionnaire-3 reply all the questions

regarding 2 variables measuring their benefits in Yes or No and also express their

satisfaction level on five points scale ranging from very unsatisfied to very satisfied

as main beneficiary (question 16 and 17) but for other questions which are for benefit

97

of workers (question 1 to 15) management representatives reply in Yes or No

endorsing or rejecting as witness the claims of union

All the data were collected from sampled respondents by researcher by paying

visits to every respondent

44 PREPARATION OF SATISFACTION LEVEL SCALE

In the present research researcher proposed 17 variables 15 measuring unionsrsquo

efforts for workers and 2 measuring unionsrsquo efforts for employersrsquo benefits On these

efforts the satisfaction of relevant respondent is measured on 5 points Satisfaction

Level Scale (SLS) on Likert Sacle as suggested by Emory (1980) and Cooper amp

Schindler (nd) In this scale weight 5 is allotted to Very Satisfied 4 is allotted to

Satisfied 3 is allotted to Indifferent 2 is allotted to Un-Satisfied and 1 is allotted to

Very Un-Satisfied

45 PILOT STUDY

To test the completeness of questionnaires with respect to information

collection and validity of the instruments a pilot study was conducted in first week of

December 2006 It was found that due to Name workers were reluctant to respond

Besides this the question number 6 regarding the overtime was not included and

questions 18 19 and 20 about unions essentiality inter union relations (between CBA

and non CBA unions) and comparison of unions strength or weakness as compared to

past were also not present So later on name was deleted and question 6 about

overtime and questions 18 19 and 20 were added

46 CODES AND ABBREVIATIONS

In tables due to space limitation formula terms column captions and row stubs

have been abbreviated For abbreviations see appendix E-1) Variable have also been

coded for equations preparation and for writing in the tables in appendix E-2

98

47 STATISTICAL METHODS APPLIED

Collected raw data were converted in to meaningful data by tabulation for

applying statistical techniques of Percentage Arithmetic Mean ( ) Chi square (χ2) and

Comparisons to draw conclusions Then these statistical techniques were applied Both

Statistical Techniques ie Descriptive Statistics in the form of Percentages and

Arithmetic Mean and Inferential Statistical Techniques in the form of Chi square χ2

were used Simple statistical methods have been used so that those readers who have no

statistical background specially workers unionsrsquo office bearers and employers may also

understand and take benefit of this study Data collected on YesNo responses were

analyzed by using percentages and data collected on five points satisfaction level Likert

Scale were analyzed by using Weighted Arithmetic Mean as suggested by Emory

(1980) and Chi square test

The fourth method of comparison by comparing data of permanent workers

with temporary workers was also used to see the unionsrsquo role for seeking benefits for

workers

The formulae of Percentage Arithmetic Mean and Chi square are

471 Percentage

Percentage of Yes responses = Number of Yes responses 100 Number of

total responses

And

Percentage of No responses = Number of No Responses 100 Number of

total responses

472 Arithmetic Mean

Simple Arithmetic Mean is calculated by formula

99

Arithmetic Mean of frequency data is ( ) = ΣfXi n when mean is of one

organization (organizational means) or is of one variable (variable mean) of all

the organizations

Here lsquoΣ fXirsquo is total of responses multiplied by their respective value (weight)

from 1 to 5 (1 for VUS 2 for US 3 for IND 4 for S and 5 for VS) as

suggested by Emory (1980)

For estimation of mediating variables Combine mean of the weighted

arithmetic means of all the variables is to be calculated by application of

formula

Combine Mean = Σ i N

Where Σ i is sum of all the arithmetic means of all the variables and N is

number of variables which is 15 for combine mean calculation of workersrsquo variables

and 2 for combine mean calculation of employer variables

By the value of combine mean of variable-wise means of all the variables the

success of unions will be estimated If the value of the combined mean lies in the

satisfactory region being greater than lsquo3rsquo the value of indifferent weight then unions

are successful and beneficial bodies and are playing role in HRD of the organizations

If it is equivalent to indifferent then they are tolerable and if it lies in the

unsatisfactory region being less than lsquo3rsquo being below indifferent level then unions are

failed organizations and workers or employers are not satisfied with them and we can

conclude that unions are non-beneficial bodies in the organizations and are playing no

role in HRD of the organizations

100

473 Chi Square (χ2)

Formula for Chi square is χ2 = Σ (fo-fe)2fe or

χ2 = Σ (fo-fe)2fe

Σ = (sum of values)

fo = (observed value) calculated by adding all the vales in a column

fe = (expected value) calculated by dividing grand total by number of

columns

df (degree of freedom) = (c-1) (r-1)

df stands for degree of freedom

fo stands for observed frequency

fe stands for expected frequency

c stands for column

r stands for row

In this research Chi square as suggested by Emory (1980) and Cooper amp

Schindler (nd) has been applied on the totals of the columns of variable pertaining to

workers only and not on variables for employers because of limited number of

responses

The level of significance selected for making inference about population was

005

If calculated value of Chi square is more than table value at 005 significance

level at respective degree of freedom then our statement of assumption for respective

variable will be rejected and alternative view will be established

101

474 Comparison

Comparison has been made of admissible facilities enjoyed by permanent

(unionized) workers with temporary (non-unionized) workers in two lsquocomparison

tablesrsquo These comparable facilities were Wage Rise Fringe Benefits (bonus and

allowances) Job Security Weekly Working Hours Working Conditions Children

Education Facility Health Facilities Miscellaneous Allowances and Yearly Leaves

48 CALCULATIONS BY APPLYING STATISTICAL METHODS

For analyzing the data methods of percentage calculation arithmetic mean

calculation and chi square have been applied

481 Percentage Calculation of Yes No Responses

Questions 18 19 and 20 in the questionnaire 2 were answered in Yes No For

estimation of views percentage method has been applied For question 18 about the

essentiality of unions for the organizations if total of percentages of lsquoYesrsquo answers is

more than 50 then it means majority of workers is acknowledging the need of unions

for the cause of workers If the percentage of Yes answers for question 19 about the

inter unions relations is more than 50 percent it means that unionsrsquo mutual

relationships are good For Question 20 about the unionsrsquo strength as compared to

unions in the past if the percentage of Yes answers is more than 50 percent it means

that unionsrsquo of today are weaker than unions in the past

482 Means Calculations

Arithmetic Mean has been calculated of five point satisfaction level of

respondents as described by Emory (1980) and Cooper amp Schindler (nd) by giving

Value 5 to Very Satisfied (VS) 4 to Satisfied (S) 3 to Indifferent (IND) 2 to Un-

Satisfied (US) and 1 to Very Un-Satisfied (VUS) and accordingly multiplying their

frequencies with their respective value Then adding them and dividing them by

respective total frequency ldquonrdquo In Organization wise means n is obtained by

multiplying number of respondents of that organization with number of variables as in

case of ARL for workers satisfaction it will be 35 15= 525 (here 35 is number of

102

respondents and 15 is number of variables) For variable wise mean for workerrsquo

variable n will be 525 which is total number of respondents for any variable being

sample size When mean is calculated for organization it is lsquoorganizational meanrsquo and

when calculated for variable (in variable wise calculation) it is lsquovariable meanrsquo Then

all the variable means are added to each other and divided by number of variables

(total number of variables for workers is 15) to calculate lsquoCombined Meanrsquo of all the

variables of all the organizations

Organizational mean of variables for management variables have been

calculated organization wise by adding weights of responses of that organization and

dividing the sum by 2 which is number of variables benefiting employer for any

organization

Similarly lsquovariable meanrsquo of variables for unionsrsquo efforts for employers were

calculated by adding weighted values of responses of all the respondents for every

variable and then dividing it by 10 then these all variable means were added to each

other and divided by 2 to calculate lsquoCombined Meanrsquo which is direct measure of

employersrsquo satisfaction and consequently of unionsrsquo success

If Combined Mean is below Indifferent level by bearing value less than 3 than

it means workers or employers of organizations are not satisfied with unions efforts

and unions are not successful so unions are not beneficial bodies for organizations If

Combined Mean is equivalent to lsquoIndifferentrsquo by bearing value equal to 3 then it

means unions workers or employers of organizations are neither happy nor unhappy or

number of satisfied and unsatisfied workers is equal So unions if exist have no benefit

or harm or if not existing even then have no benefit or harm but if Combined Mean is

more than ldquoIndifferentrdquo level then majority of workers or employers of organizations

is satisfied with their efforts so their existence is required and we can conclude that

unions are beneficial bodies for organizations

These means have been calculated for responses of workers and for responses

of employermanagement organization-wise of all variables as well as variable-wise

of all the organizations

103

At every stage may be Organization Means Variable Means or Combined

Mean if its value is below 3 (which is weight allotted to ldquoIndifferentrdquo response level)

then it shows clearly that union is not efficient and beneficial It will prove the Null

Hypothesis that unions are not beneficial bodies for organizations and it is to be

accepted If the Mean is above 3 then it shows that the union is efficient and its

presence is beneficial so null hypothesis is to be rejected and Alternate hypothesis is to

be accepted

483 Chi Square Applications

To see the significance and to test assumption statements for every variable

Chi square technique has also been applied for variables pertaining to workers at 005

level of significance as has been applied for testing of statements by Ahmed (2004)

Aleem (2004) Where calculated value of Chi square is more than table value then the

assumption statement is to be rejected and accepted the alternate view point for that

variable It is another parameter to check the efficiency and efforts of unions for

seeking benefits for their workers Chi Square has been applied only on responses of

workers and not on responses of management because of very small number of

respondents

484 Comparison Applications

Comparison has also been made of facilities availed by unionized workers with

non-unionized temporary workers to see their efforts whether facilities had been won

by unions efforts or it was merely blessing of employer or government If there was no

difference than unions were also not beneficial bodies but if unionized workers were

enjoying more facilities and better terms of employment than unions are beneficial

bodies in the organizations

49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS

According to theoretical frame work fifteen variables have been targeted for

measuring the efforts of union for benefits of workers These are Wages-rise (Wris)

Job-security(Jsec) Time-decrease (Td) Working-conditions (Wcon) Children-

104

education (Ced) Health-facilities (Hfac) Financial-benefits(Fbft) Over time payment

(Ot) Leaves Increase (Linc) Post Retirement and pension benefits (Prb) Recreation

facilities (Rfac) Training opportunities (Top) Decrease of wage salary difference

gape of workers and officers (Wdf) Informing workers about rights (Ir) and Workers

education These variables have been measured at five scale satisfaction level ie Fully

Satisfied valued as 5 Satisfied valued as 4 Indifferent valued as 3 Unsatisfied valued

as 2 and Fully Unsatisfied valued as 1 The Frequency of variables has been multiplied

with concerned value and then valued frequencies added and their sum has been

divided with sample size of the concerned organization for calculation of organization

mean and with whole sample for sampled mean

For every variable as value of Indifferent satisfaction level is 3 so if sample

mean is 3 then it means union is neither beneficial nor non-beneficial but tolerable and

there is no harm of union if not giving any benefit and no loss if not existing If mean

is less than three than union is not beneficial body and if mean is more than 3 than

union is a beneficial body More it is bigger than 3 the more beneficial is the union for

workers or more union has put efforts for acquiring workers benefit

Combine mean of all the variables means is obtained by putting their values in

equation 2 Details of codes used in the equation is in appendix E-2

SW = (Wrise + Fbft +Jsec + Td + Wcon + Ced + Hfac +

+ Linc+ Ot + Prb + Rfac + Top + Wdf + Ir + We+)15

This combined mean is measure of satisfaction level of workers and a

component of unionsrsquo success equation lsquoSu = f Sw Sersquo If combined mean is above

3 (indifferent level) unions are successful with reference to putting efforts for workers

benefits and value of combined mean above 3 will be a scale of level of success If

combined mean is 3 then unions are neither successful nor harmful If mean is below 3

then unions are failed and there presence in the organization is not benefiting so there

existence should be avoided

105

491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits

Two variables have been targeted for measuring the efforts of unions for

employersrsquo benefits

These are efforts to increase workers productivity or efficiency (productivity in

manufacturing efficiency in non manufacturing and services) (Pin) and efforts for

work place peace and harmony (Wph) The Frequency of variablesrsquo is multiplied with

concerned weight and then weighted frequencies are added and their sum is divided

with sample size for calculation of sampled mean

As weight of indifferent satisfaction level is 3 so if sample mean is 3 then it

means union is neither beneficial nor non-beneficial but tolerable and there is no harm

of union if not benefited If mean is less than three than union in not beneficial body

and if mean is more than 3 than union is a beneficial body More it is bigger than 3 the

more beneficial is the union for workers Weighted average of all the variables has

been obtained and then all these means have been put in the equation

Se = (Pin + Wph)2

Here 2 is number of variables This gives the combined mean of employersrsquo

variables Combined mean is measure of satisfaction of employer with the unions

If combined mean is three then union has neither benefit nor harm or equally

satisfying and un-satisfying if less than 3 then employer is unsatisfied union is not

beneficial body for the employer of the organization and if it is bigger than 300 then

the employer is satisfied so union is beneficial body for the employer of the

organization

CHAPTER 5

DATA ANALYSIS AND RESULTS

This chapter is dedicated to present and analyze collected data by applying

statistical operations

51 DATA PRESENTATION

Data obtained from respondents by asking questions 1 to 17 in questionnaire 1

2 and 3 are tabulated in appendices F-1 to F-10

In appendices F-1 to F-10 every table has 11 columns First column contains

coded name of variable Columns 2 and 3 show answers of workers about unionsrsquo

role column 2 contains number of respondents replying in Yes and column 3 contains

number of respondents replying in No Columns 4 to 8 express satisfaction level of

workers from very satisfied to very unsatisfied Column 9 represents unionsrsquo response

on the same question It is claim of union about the services they rendered and it is

answered in YesNo Column 10 contains the managementsrsquo answers on unionsrsquo

performance as witness for efforts exerted for benefit of workers and certifier for

variables for benefit of management itself Column 11 shows the numerical value of

managementrsquos answer of variables pertaining to employersrsquo interest protected by

unions Data for all other tables drawn for analysis have been taken from these tables

Replies of questions 18 19 and 20 of questionnaire 2 are presented in table in

appendix F-11 replies of question number 18 19 and 20 of questionnaire 1 are

presented in table in appendix F-12 and replies of question number 18 19 and 20 of

questionnaire 3 are presented in table in appendix F-13

511 Organization-Wise Description of Respondents

Data collected from respondents pertaining to questions numbers 1 to 17 of all

the organizations have been tabulated organization wise in the appendices F-1 to F-10

Their description is given below

107

5111 Description of respondents of ARL

For Attock Refinery Limited (ARL) for unionrsquos opinion general secretary of

the union in the presence of president for managementrsquos view point manager HR and

among workers 30 permanent workers and 10 temporary or contract workers were

interviewed in Head office and Refinery at Morgah Rawalpindi Because of

difficulties of gaining access to the workplace only 30 workers of different trades were

randomly contacted in the parking administrative offices and outside of refinery at

different times randomly Majority of workers were interviewed during breaks and

after end of duty (appendices A-1 and B-1) Ten temporary workers were interviewed

similar way

5112 Description of respondents of CDA

In Capital Development Authority (CDA) for unionrsquos opinion president of the

union for managementrsquos view point Deputy Director Labor Affairs and among

workers 70 permanent workers were interviewed in head office and at divisional and

directorates offices field complaint office and rest-house workers (appendices A-2

and B-2)

For temporary workersrsquo opinion ten temporary workers were interviewed in

different offices

5113 Description of respondents of IESCO

In Islamabad Electric Supply Company (IESCO) for unionrsquos opinion general

secretary of the union for managementrsquos views manager HR and among workers 70

permanent workers and 10 temporary or contract workers were interviewed in head

office in various circle offices (office of Executive Engineer) divisional offices (office

of Sub Divisional Officer) grid stations and customer services centers Islamabad and

Rawalpindi (appendices A- 3 and B-3)

108

5114 Description of respondents of KTM

In Kohinoor Textile Mills (KTM) for unionrsquos opinion general secretary of the

union for managementrsquos views manager HR and among workers 35 permanent

workers and 10 temporary or contract workers were interviewed in Head office and

workers residential colony at Rawalpindi Because of difficulties of gaining access to

the workplace only 35 workers of different trades were randomly contacted in the

colony and in surroundings of the factory (appendices A- 4 and B-4)

5115 Description of respondents of OGDCL

In Oil and Gas Development Company Limited (OGDCL) for unionrsquos opinion

General secretary of the union and for managementrsquos view point manager HR and

among workers randomly picked 50 permanent workers and 10 temporary or contract

workers were interviewed in head office Islamabad at store I-9 Staff College (OGTI)

Islamabad and in different oilfields (appendices A-5 and B-5)

5116 Description of respondents of PCP

In Printing Corporation of Pakistan (PCP) for unionrsquos opinion general

secretary of the union and for managementrsquos views point Director Administration and

from workers randomly picked 50 permanent workers were interviewed from head

office and printing press Islamabad There is no temporary worker in the organization

(appendices A-6 and B-6)

5117 Description of respondents of PTCL

In Pakistan Telecommunication company Limited (PTCL) for unionrsquos opinion

General Secretary of the union and for managementrsquos view point General Manager

Human Resource and among workers randomly picked 70 permanent workers and 10

temporary or contract workers were interviewed in head office G-8 Islamabad

divisional engineers offices telephone exchanges revenue offices customers services

centers in Islamabad and Rawalpindi and line men working in the field (appendices

A- 7 and B-7)

109

5118 Description of respondents of PTV

In Pakistan Television Corporation (PTV) for unionrsquos opinion general

secretary of the union and for managementrsquos view point controller HR and

administration and among workers randomly picked 50 permanent workers and 10

temporary or contract workers were interviewed in head quarter (administration office

head office) PTV Main telecasting Station F-5 Islamabad at PTV ONE and ETV at H-

9 Islamabad (appendices A- 8 and B-8)

5119 Description of respondents of SNGPL

In Sui Northern Gas Pipe Line Limited (SNGPL) for unionrsquos opinion General

Secretary of the union and for managementrsquos views manager HR and among workers

randomly picked 50 permanent workers and 10 temporary or contract workers were

interviewed in General Manager office I-9 Islamabad in different departments such as

construction department billing department connection department meter reading

department sales department recovery department administration department and

marketing department and in revenue offices of Saddar Rawalpindi and Satellite Town

Rawalpindi and workers in the fields (appendices A- 9 and B-9)

51110 Description of respondents of ZTBL

In Zarhi Tarraqqiatti Bank Limited (ZTBL) for unionrsquos opinion general

secretary of the union and for managementrsquos view point Senior Vice President

administration and HR and among workers randomly picked 50 permanent workers

and 10 temporary or contract workers were interviewed in head office Zero Point

Islamabad at zonal office G-7 Islamabad and in some branches (appendices A- 10 amp

B-10)

51111 Workers responses of the questions about essentiality inter unions relations and unions status as compared to past

To find out whether unions are essential in the organizations or not what are

inter union relationships of unions where if unions are more than one in the

organization and what happened with the strength of unions with the passage of time

110

workers of the organizations were asked questions 18 19 and 20 respectively

Responses of workers are presented in table in appendix F-11 Three organizations

ARL PCP and ZTBL have single union so in analysis of question 18 their respondents

will not be considered in sample

51112 Unionsrsquo office bearersrsquo responses of the questions about work council charter of demand and unionistsrsquo training

These responses are tabulated in table in appendix F-12 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

51113 Management responses about work council charter of demand and wage cut

These responses are tabulated in table in appendix F-13 Column 1 is about

organizations names column 2 is about responses of question 18 column 3 is about

responses of question 19 and column 4 is about responses of question 20 of unionsrsquo

representatives

52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA

Here data tabulated in appendices F-1 to F-10 have been analyzed Tables have

been constructed for this purpose Tables 1 to 10 are meant for variables pertaining to

workers Where unions are claimer workers are certifier as actual party and

management is witness Every table comprise 7 columns first column contains

variables column 2 to 6 contain workersrsquo responses with satisfaction level valued

from 5 for very satisfied (VS) to 1 very un-satisfied (VUS) about any effort and

column 7 contains total number of respondents for any variable Total of all the

columns has been multiplied by its value to obtain valued total and valued totals of all

columns from 2 to 6 added (such as in table-1 total of column two ie 32 multiplied by

its value ie 5 so valued total came 160 and valued total of column three that is 944

valued total of column four that is 402 and valued total of column five that is 96 and

their grand valued total is 1602 ) and divided by number of all the responses (450

111

which is product of number of respondents ie 30 multiplied by number of variables

ie 15) to get organizationrsquos mean that is 356 It is measure of satisfaction of workers

on efforts of union of the organization for their benefits

Tables from 11 to 20 are meant for calculating arithmetic means of responses of

variables pertaining to employer and contain 3 columns Column one is for variable

name column 2 contains responses of employer and column 3 contains values of these

responses Values in the column 3 have been added and their total has been divided by

number of variables ie 2 to calculate mean of responses of employer It is really

measure of satisfaction of employer on efforts of union of one organization for

employerrsquos interest

521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES

Organization wise arithmetic means and percentages of all the organizations on

the basis of the variables pertaining to workers have been calculated below in tables 1

to table 10

112

Table-1 Responses of Workers of ARL Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 2 20 8 - - 30

Fbft 8 16 4 2 - 30

Jsec 8 18 4 - - 30

Td 16 14 - - 30

Linc 24 6 - - 30

Ot 20 10 - - 30

Wcon 4 22 4 - - 30

Hfac 20 6 4 30

Ced 2 14 10 4 30

Prb - 2 14 14 30

Rfac 2 10 8 10 30

Top 18 8 4 30

We 12 14 4 30

Wdf 6 8 12 4 30

Ir 16 12 2 30

Total = f 32 236 134 48 450

fXi 160 944 402 96 1602 Organizational Mean (ARL) = Σ fXi450= 1602450 = 356

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 356 which is more than 3 (Indifferent level) showing union of ARL is

exerting efforts for exacting benefits for workers

Union of ARL claimed for exertion of efforts for securing all benefits for workers and

management confirmed it (see column 9 and 10 of appendix F-1)

113

Table 2 Responses of Workers of CDA (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris 40 14 16 70

Fbft 62 6 2 70

Jsec 48 18 4 70

Td 36 32 2 - 70

Linc 35 33 2 70

Ot 30 32 8 70

Wcon 30 28 12 70

Hfac 40 14 16 70

Ced 13 48 9 70

Prb 14 50 6 0 70

Rfac 58 12 70

Top 10 20 40 70

We 28 34 8 70

Wdf 28 28 14 70

Ir 54 10 6 70

Total = f 14 504 381 151 1050

fXi 70 2016 1143 302 3531 Organizational Mean (CDA) = Σ fXi1050 =35311050 = 336

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 336 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts for exacting benefits for workers

Union of CDA claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for time decrease leaves increase

recreation facilities and workersrsquo education (see column 9 and 10 of appendix F-2)

114

Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris - 26 22 22 - 70

Fbft 2 12 56 - 70

Jsec 7 40 13 10 - 70

Td - 40 23 7 - 70

Linc - 40 25 5 - 70

Ot 36 20 14 - 70

Wcon 50 10 10 - 70

Hfac 26 24 20 - 70

Ced 9 44 17 - 70

Prb 4 46 20 - 70

Rfac 47 23 70

Top 22 34 14 - 70

We 36 24 10 70

Wdf - 2 37 31 - 70

Ir - 49 10 11 - 70

Total = f 7 382 391 270 1050

fXi 35 1528 1173 540 3276 Organizational Mean (IESCO) = Σ fXi1050 = 32761050 = 312

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 312 which is more than 3 (Indifferent level) showing union of IESCO is

exerting efforts for exacting benefits for workers

Union of IESCO claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for fringe benefits leaves increase

workersrsquo education and reduction of officers workers salary difference (see column 9

and 10 of appendix F-3)

115

Table 4 Responses of Workers of KTM (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row

Total Value (Xi) 5 4 3 2 1

Variables No

Wris - 10 4 21 35

Fbft - 17 17 1 35

Jsec - 15 10 10 35

Td - 13 13 9 35

Linc - 10 16 9 35

Ot - 12 15 8 35

Wcon - 30 5 - 35

Hfac 6 25 4 - 35

Ced 4 20 11 - 35

Prb - 17 10 8 35

Rfac - 16 10 9 35

Top 22 13 35

We 12 17 6 35

Wdf 2 7 26 35

Ir 20 12 3 35

Total = f 10 219 173 123 525

fXi 50 876 519 246 1691 Organizational Mean (KTM) = Σ fXi525= 1691525 = 322

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 322 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts for exacting benefits for workers

Union of KTM claimed for exertion of efforts for securing all benefits for

workers and management confirmed it except for wage rise time decrease leave

increase overtime payment recreation facilities training opportunities and reduction

of officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

116

Table 5 Responses of Workers of OGDCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris - 35 15 - - 50

Fbft 2 34 10 4 - 50

Jsec - 45 5 - - 50

Td - 40 10 - - 50

Linc - 40 10 - - 50

Ot - 22 16 12 - 50

Wcon 4 33 10 3 - 50

Hfac 17 28 5 - - 50

Ced - 8 36 06 - 50

Prb - 27 13 10 - 50

Rfac 18 14 14 04 - 50

Top 4 19 20 7 - 50

We 21 19 10 - 50

Wdf 5 26 14 5 - 50

Ir - 34 12 4 - 50

Total = f 50 426 209 65 750

fXi 250 1704 627 130 2711

Organizational Mean (OGDC) = Σ fXi750 = 2711750 = 361

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 361 which is more than 3 (Indifferent level) showing that union of

OGDC is exerting efforts for exacting benefits for workers

Union of OGDC claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-5)

117

Table 6 Responses of workers of PCP (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 37 4 9 50

Fbft 33 8 9 50

Jsec 4 40 4 2 50

Td 40 4 6 50

Linc 38 7 5 50

Ot 37 9 4 50

Wcon 39 6 5 50

Hfac 40 5 5 50

Ced 11 16 23 50

Prb 5 30 15 50

Rfac 30 20 50

Top 24 26 50

We 30 20 50

Wdf 5 37 8 50

Ir 20 21 9 50

Total = f 4 375 225 146 750

fXi 20 1500 675 292 2487 Organizational Mean (PCP) = Σ fXi750 = 2487750 = 332

Weighted Arithmetic Mean of Satisfaction Level of the responses of workers

for all the variables is 332 which is more than 3 (Indifferent level) showing union of

PCP is exerting efforts for exacting benefits for workers

Union of PCP claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities

recreation facilities training opportunities workersrsquo education and reduction of

officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)

118

Table 7 Responses of workers of PTCL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 28 18 24 - 70

Fbft 14 16 40 70

Jsec 2 39 15 14 - 70

Td 40 20 10 - 70

Linc 36 24 10 - 70

OT 10 38 22 - 70

Wcon 36 24 10 - 70

Hfac 44 16 10 - 70

Ced 11 32 27 - 70

Prb 4 44 22 - 70

Rfac 40 30 - 70

Top 16 40 14 - 70

We 19 39 12 70

Wdf 32 38 - 70

Ir 18 34 18 70

Total = f 2 315 432 301 1050

fXi 10 1260 1296 602 3168 Organizational Mean (PTCL) = Σ fXi1050 = 31681050 = 302

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 302 which is very marginally bigger than 3 (Indifferent level) showing

that union of PTCL is exerting efforts for exacting benefits for workers but the

situation is hardly satisfactory and union is approximately at tolerance level Thus

PTCL union has much to do for workers

Union of PTCL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for children education facilities post

retirement benefits recreation facilities (see column 9 and 10 of appendix F-7)

119

Table 8 Responses of workers of PTV (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables X1 X2 X3 X4 X5 N

Wris 6 26 14 4 50

Fbft - 36 12 2 50

Jsec 7 39 3 1 50

Td 37 10 3 50

Linc 38 9 3 50

Ot 41 6 3 50

Wcon 39 11 50

Hfac 37 5 8 50

Ced 13 20 17 50

Prb 21 24 5 50

Rfac 10 34 6 50

Top 16 24 10 50

We 33 8 9 50

Wdf 23 14 13 50

Ir 30 10 10 50

Total = f 13 439 204 94 750

fXi 65 1756 612 188 2621 Organizational Mean (PTV) = Σ fXi750 = 2621 750=350

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 350 which is more than 3 (Indifferent level) showing that union of PTV

is exerting efforts for exacting benefits for workers

Union of PTV claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for recreation facilities (see column 9

and 10 of appendix F-8)

120

Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables No

Wris 7 30 10 3 50

Fbft 5 30 12 3 50

Jsec 5 34 11 50

Td 34 16 50

Linc 32 18 50

Ot 3 21 23 3 50

Wcon 3 40 4 3 50

Hfac 4 34 10 2 50

Ced 6 22 22 50

Prb 37 8 5 50

Rfac 16 30 2 2 50

Top 10 34 6 50

We 15 25 10 50

Wdf - 17 28 5 50

Ir 25 14 11 50

Total = f 43 395 237 75 750

fXi 215 1580 711 150 2656 Organizational Mean (SNGPL) = Σ fXi750 = 2656750 = 354

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 354 which is more than 3 (Indifferent level) showing that union of

SNGPL is exerting efforts for exacting benefits for workers

Union of SNGPL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it except for time decrease and leaves increase

(see column 9 and 10 of appendix F-9)

121

Table 10 Responses of workers of ZTBL (Organizational Mean Calculation)

Satisfaction Level VS S IND US VUS Row Total

Value (Xi) 5 4 3 2 1

Variables

Wris - 32 14 4 - 50

Fbft 28 14 8 - 50

Jsec 26 20 4 - - 50

Td 28 16 6 - 50

Linc 28 14 8 50

Ot 16 12 22 - 50

Wcon 32 14 4 - - 50

Hfac 1 38 4 7 - 50

Ced 22 22 6 - 50

Prb 2 18 30 - 50

Rfac 28 22 - 50

Top 26 20 4 - 50

We 28 18 4 50

Wdf 2 20 22 6 - 50

Ir 4 34 7 5 - 50

Total = f 65 336 217 132 750

fXi 325 1344 651 264 2584 Organizational Mean (ZTBL) = Σ fXi750 = 2584750= 345

Arithmetic Mean of Satisfaction Level of the responses of workers for all the

variables is 345 which is more than 3 (Indifferent level) showing that union of ZTBL

is exerting efforts for exacting benefits for workers

Union of ZTBL claimed for exertion of efforts for procuring all benefits for

workers and management confirmed it (see column 9 and 10 of appendix F-10)

122

522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES

Organization wise arithmetic means of all the organizations on the basis of the

two variables pertaining to management have been calculated below in tables 11 to

table 20

Table 11 Responses of Management of ARL

Management Responses

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (ZTBL) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing that union of

ARL is exerting efforts in exhorting workers to work for the interest of employer

Therefore union is successful

123

Table 12 Responses of Management of CDA

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (CDA) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is

exerting efforts in exhorting workers to work for the interest of employer

124

Table 13 Responses of Management of IESCO

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph FS 5

Total 9

Mean 92 = 45

Organizational Mean (IESCO) = Σ Xi2 = 92 = 45

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 45 which is more than 3 (Indifferent level) showing union of IESCO

is exerting efforts in exhorting workers to work for the interest of employer

125

Table 14 Responses of Management of KTM

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 84 = 400

Organizational Mean (KTM) = Σ Xi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is

exerting efforts in exhorting workers to work for the interest of employer

126

Table 15 Responses of Management of OGDC

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 3 5

Organizational Mean (OGDC) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL

is exerting efforts in exhorting workers to work for the interest of employer

127

Table 16 Responses of Management of PCP

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PCP) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is

exerting efforts in exhorting workers to work for the interest of employer

128

Table 17 Responses of Management of PTCL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph ND 3

Total 6

Mean 62 = 30

Organizational Mean (PTCL) = Σ Xi2 = 62 = 30

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 3 which is equivalent to Indifferent level showing employer of PTCL

is at indifferent level and union is tolerable for employer Here again unionsrsquo

performance needs much improvement

129

Table 18 Responses of Management of PTV

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (PTV) = Σ Xi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of PTV is

exerting efforts in exhorting workers to work for the interest of employer

130

Table 19 Responses of Management of SNGPL

Management Response

Variable Satisfaction Level Value

Pin IND 3

Wph S 4

Total 7

Mean 72 = 35

Organizational Mean (SNGPL) = ΣXi2 = 72 = 35

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL

is exerting efforts in exhorting workers to work for the interest of employer

131

Table 20 Responses of Management of ZTBL

Management Response

Variable Satisfaction Level Value

Pin S 4

Wph S 4

Total 8

Mean 82 = 400

Organizational Mean (ZTBL) = Σ fXi2 = 82 = 400

Arithmetic Mean of Satisfaction Level of the responses of management for all

the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is

exerting efforts in exhorting workers to work for the interest of employer

132

53 VARIABLE-WISE ANALYSIS

In this section performance of unions has been estimated by measuring

satisfaction level of respondents ie workers and employers in the lights of their

responses for every variable by applying arithmetic mean and Chi squire

Mean of satisfaction level of workers of all the sample for all 15 variables has

been calculated individually in tables from table 21 to table 35 and then combine mean

of satisfaction level of all variable has been calculated in lsquotable 36rsquo by adding these

individual variable means and dividing it on 15 which is total number of variable

In tables 21 to 35 totals of columns 3 to 7 have been multiplied by their

respective value (given in top row stubbed lsquoValuersquo) to obtain valued total and these

valued totals of all columns have been added and divided by lsquoNrsquo which is total of

respondents (total of sample) and equal to 525 the outcome is lsquovariable meanrsquo for

concerned variable This mean measures the satisfaction level of all the sampled

workers on the efforts of unions exerted for that single benefit

Chi square test has been applied on 15 variables in tables 37 to 51 on totals of

columns fetched from tables 21 to 35 respective variable at significance level of 005

and degree of freedom according to data of variable Calculated values of Chi square

have been compared with table value at 005 significance level and respective degree

of freedom In case calculated value is greater than table value the hypothesis for that

variable is to be rejected and alternative view is to be accepted

133

531 MEAN CALCULATION OF VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERSrsquo BENEFITS

Variables that are measuring unionsrsquo efforts for securing benefits for workers

are fifteen These have been analyzed by constructing tables and calculating their

arithmetic mean

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 21 Mean calculations-wage rise (Wris)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 20 8 - -

CDA 70 40 14 16

IESCO 70 - 26 22 22 -

KTM 35 - 10 4 21

OGDCL 50 - 35 15 - -

PCP 50 37 4 9

PTCL 70 28 18 24 -

PTV 50 6 26 14 4

SNGPL 50 7 30 10 3

ZTBL 50 - 32 14 4 -

Total (f) 525 15 284 123 103 -

fXi 75 1136 369 206 - 1786

Variable Mean = Σ fXi 525 =1786 525 = 340

134

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization (ten organizations) for Wage rise of workers

is 340 which is bigger than 3 (Indifferent Level) showing unions as a whole have

exerted effective efforts for rise in wages of worker

Efforts of unions for wage rise can be estimated from this fact that at time of

survey (December 2006) minimum wage was Rupees 4000 but 324952 workers

were earning wages between Rupees 5000 and 10000 and 4952 between 10000

and 20000 and 118 percent were getting wages even more than rupees 20000

(Appendix C-3) Rise in wages was 15 to 35 except of KTM (see Appendix C-1)

This is really an achievement at the part of labor unions proving their success

Out of 525 respondents 15 were very satisfied 284 satisfied 123 indifferent

and only 103 were unsatisfied (see Table 21 and Figure2)

Management of all the organizations Except KTM also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

So Hypothesis 1 that unions did not exert efforts for wage rise of workers is

rejected and alternate view is established

Figure-2 - Satisfaction Level of Workers on Wage Rise

Very Satisfied 15

3

Satisfied 284 54

Indifferent 123 23

un-Satisfied 103 20 Very Satisfied

SatisfiedIndifferentun-Satisfied

135

Hypothesis 2 (H2) Unions did not exert efforts for financial benefits like bonus of Workers

Table 22 Mean Calculations - Bonus (Financial Benefits) (Fbft)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 16 4 2 -

CDA 70 62 6 2

IESCO 70 2 12 56 -

KTM 35 - 17 17 1

OGDCL 50 2 34 10 4 -

PCP 50 33 8 9

PTC) 70 14 16 40

PTV 50 - 36 12 2

SNGPL 50 5 30 12 3

ZTBL 50 28 14 8 -

Total (f) 525 15 272 111 127

fXi 75 1088 333 254 1750

Variable Mean = Σ fXi 525 =1750 525 = 333

136

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Fringe Benefits (Bonus) of workers is

333 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for obtaining bonuses for worker So Hypothesis 2 that

unions did not exert efforts for financial benefits like bonus of workers is rejected and

alternate view is established

Except PCP workers of all other organizations are getting bonuses and in some

organizations bonuses are two or more ARL paid 5 and KTM has paid 4 bonuses in

previous charter (Appendix C-1) ARL KTM and OGDCL pay 5 percent of their

profit to workers and KTM besides this also makes payment to social security and 5

percent equivalent of workersrsquo salary to Employees Old Age Benefit department

(Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Out of 525 respondents 15 were very satisfied 272 satisfied 111 indifferent

and only 127 were unsatisfied (see Table 22 and Figure-3)

Management of all the organizations except IESCO also confirmed that unions

have been negotiating with them for exacting this benefit for workers (see tables in

appendices F-1 to F-10 column management responses)

Figure-3 - Satisfaction Level of Workers on Financial Benefits

Very Satisfied 15

3

Satisfied 272 52Indifferent

111 21

un-Satisfied 127 24 Very Satisfied

SatisfiedIndifferentun-Satisfied

137

Hypothesis 3 (H3) Unions did not exert efforts for Job Security of workers

Table 23 Mean Calculations Job Security (J-sec)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 8 18 4 - -

CDA 70 48 18 4

IESCO 70 7 40 13 10 -

KTM 35 - 15 10 10

OGDCL 50 - 45 5 - -

PCP 50 4 40 4 2

PTC) 70 2 39 15 14 -

PTV 50 7 39 3 1

SNGPL 50 5 34 11

ZTBL 50 26 20 4 - -

Total (f) 525 59 338 87 41 0

fXi 295 1352 261 82 1990

Variable Mean = Σ fXi 525 =1990 525 = 379

138

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Job Security of workers is 379which is

bigger than 3 (Indifferent Level) showing unions as a whole have exerted effective

efforts for Job Security of worker

Out of 525 respondents 59 were very satisfied 338 satisfied 87 indifferent and

only 41 were unsatisfied (see Table 23 and Figure-4)

Employees of all the organizations under study are enjoying job security due to

unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts of

unions for job security only 41 workers were unsatisfied (Table23)

Management of all the organizations also confirmed that unions have been

exerting efforts for workers job security (see tables in appendices F-1 to F-10 column

management responses)

So hypothesis 3 that unions did not exert efforts for Job Security of workers is

rejected and alternative view is established

Figure-4 - Satisfaction Level of Workers on Job Security

Very Satisfied 59

11

Satisfied 338 64

Indifferent 87 17

un-Satisfied 41 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

139

Hypothesis 4 (H4) Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 24 Mean Calculations Time Reduction (Td)

Satisfaction Level No VS S IND US VUS Σ fXi

values (Xi) 5 4 3 2 1

Organization

ARL 30 16 14 - -

CDA 70 36 32 2 -

IESCO 70 - 40 23 7 -

KTM 35 - 13 13 9

OGDCL 50 - 40 10 - -

PCP 50 40 4 6

PTCL 70 40 20 10 -

PTV 50 37 10 3

SNGPL 50 34 16

ZTBL 50 28 16 6 -

Total (f) 525 - 324 158 43

fXi 1296 474 86 1856

Variable Mean = Σ fXi 525 = 1856525 = 354

140

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Reduction in daily duty hours or

resistance offered for increase of time duration of workers is 354 which is bigger

than 3 (Indifferent Level) showing that unions as a whole have exerted effective

efforts for timings of worker

Only one organization KTM has 48 working hours per week at the rate of 8

hours per day Two organizations ARL and PCP have 40 working hours per week and

other seven organizations have weekly working hours less than 40 (Appendix C-2)

This time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation Out of 525 respondents 324 were

satisfied 158 indifferent and only 43 were unsatisfied (see Table 24 and Figure-5)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except management of

CDA PTV and SNGPL (see tables in appendices F-1 to F-10 column management

responses)

So the hypothesis 4 that unions did not exert efforts for time decrease or

offered resistance against time increase of workers is rejected and alternative view is

established

Figure-5 - Satisfaction Level of Workers on Time Reduction

Very Satisfied 0

0

Satisfied 324 62

Indifferent 158 30

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

141

Hypothesis 5 (H5) Unions did not exert efforts for health facilities Table 25 Mean Calculations - Health Facilities (Hfac)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 6 4

CDA 70 40 14 16

IESCO 70 26 24 20 -

KTM 35 6 25 4 -

OGDCL 50 17 28 5 - -

PCP 50 40 5 5

PTCL 70 44 16 10 -

PTV 50 37 5 8

SNGPL 50 4 34 10 2

ZTBL 50 1 38 4 7 -

Total (f) 525 28 332 93 72 -

fXi 140 1328 279 144 1891

Variable Mean = Σ fXi 525 = 1891525 = 360

142

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Health Facilities of workers is 360

which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted effective efforts for Health Facilities of worker

All the organizations are providing medical treatment facilities to their workers

(Appendix C-2) and out of 525 responding workers 28 were very satisfied 332

workers were satisfied 93 indifferent and 72 were un-satisfied (Table-25 amp figure-6 )

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 5 that unions did not exert efforts for health facilities is

rejected and alternative view is established

Figure-6 - Satisfaction Level of Workers on Health Facilities

Very Satisfied 28

5

Satisfied 332 63

Indifferent 93 18

un-Satisfied 72 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

143

Hypothesis 6 (H6) Unions did not exert efforts for workersrsquo children education facility

Table 26 Mean calculations- Children Education (Ced)

Variable Mean = Σ fXi 525 = 1583525 = 302

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 2 14 10 4

CDA 70 13 48 9

IESCO 70 9 44 17 -

KTM 35 4 20 11 -

OGDCL 50 - 8 36 06 -

PCP 50 11 16 23

PTCL 70 11 32 27 -

PTV 50 13 20 17

SNGPL 50 6 22 22

ZTBL 50 22 22 6 -

Total (f) 525 6 127 261 131

fXi 30 508 783 262 1583

144

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Children Education Facilities for

workers is 302 which is very slightly bigger than 3 (Indifferent Level) showing that

unions as a whole have exerted efforts for Education Facilities for children of workers

The satisfied workers 133 (6+127) and unsatisfied workers 131 are almost

equal with 261 indifferent workers on this facility which shows that unions need to put

more efforts for this facility (Table-26 amp Figure -7)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

PCP (see tables in appendices F-1 to F-10 column management responses)

So the hypothesis 6 that unions did not exert efforts for workersrsquo children

education facility is rejected and alternate view is established

Figure-7 - Satisfaction Level of Workers on Children Education Facilities

Very Satisfied 6

1Satisfied

127 24

Indifferent261 50

Un-Satisfied 131 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

145

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 27 Mean Calculations - Over Time Payment (Ot)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 20 10 - -

CDA 70 30 32 8

IESCO 70 36 20 14 -

KTM 35 - 12 15 8

OGDCL 50 - 22 16 12 -

PCP 50 37 9 4

PTCL 70 10 38 22 -

PTV 50 41 6 3

SNGPL 50 3 21 23 3

ZTBL 50 16 12 22 -

Total (f) 525 3 245 181 96

fXi 15 980 543 192 1730

Variable Mean = = Σ fXi 525 1730525 = 330

146

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Over Time Payment of workers is 330

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for Over Time Payment to worker

On unionsrsquo efforts 3 workers were very satisfied 245 were satisfied and 96

workers un-satisfied while 181 workers were indifferent (Table-27 amp figure 8)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 8 that unions did not exert efforts for overtime payment for

over working is rejected and alternate view is established

Figure-8 - Satisfaction Level of Workers on Over Time Payment

Very Satisfied 3

1Satisfied 245 47

Indifferent 181 34

un-Satisfied 96 18

Very SatisfiedSatisfiedIndifferentun-Satisfied

147

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions Table 28 Mean Calculations - working conditions (Wcon) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 4 22 4 - -

CDA 70 30 28 12

IESCO 70 50 10 10 -

KTM 35 - 30 5 -

OGDCL 50 4 33 10 3 -

PCP 50 39 6 5

PTCL 70 36 24 10 -

PTV 50 39 11

SNGPL 50 3 40 4 3

ZTBL 50 32 14 4 - -

Total (f) 525 43 333 106 43

fXi 215 1332 318 86 1951

Variable Mean = Σ fXi 525 = 1951525 = 372

148

Analysis

The overall mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Working Conditions of workers is 372

which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted

efforts for arrangements of better working conditions for workers

On unionsrsquo efforts 43 workers were very satisfied 333 workers were satisfied

as compared to 43 un-satisfied workers while 106 were indifferent (Table-28 amp Figure

9) It means unions have really exerted efforts for working conditions

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers tables (see tables in

appendices F-1 to F-10 column management responses)

So the hypothesis 8 that the unions did not exert efforts for better working

conditions is rejected and alternate view is established

Figure-9 - Satisfaction Level of Workers on Working Conditions

Very Satisfied 43

8

Satisfied 333 64

Indifferent 106 20

un-Satisfied 43 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

149

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 29 Mean Calculations- leaves facility (Linc) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 24 6 - -

CDA 70 35 33 2

IESCO 70 - 40 25 5 -

KTM 35 - 10 16 9 -

OGDCL 50 40 10 - -

PCP 50 38 7 5

PTCL 70 36 24 10

PTV 50 38 9 3

SNGPL 50 32 18 -

ZTBL 50 28 14 8 -

Total (f) 525 0 321 162 42

fXi 1284 486 84 1854

Variable Mean = Σ fXi 525 = 1854525 = 353

150

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for increasing annual leaves of workers or

offering resistance against decrease of leaves is 353 which is bigger than 3

(Indifferent Level) showing that unions as a whole have exerted effective efforts for

increase of Leaves of worker

Annual paid leaves for seven organizations are 68 and for IESCO are 73 where

as only for two organizations are 40 This is a reasonable time for rest and enjoyment

On unionsrsquo efforts 321 workers were satisfied as compared to 42 un-satisfied workers

which shows that unions have really exerted efforts for exacting this facility (Table-

29 amp Figure 10)

Management of all the organizations also confirmed that unions have depicted

their intention to resist the decrease of leaves (see tables in appendices F-1 to F-10

column management responses)

So the hypothesis 9 that unions did not exert efforts for leaves increase or

resist against leaves decrease is rejected and alternate view is established

Figure-10 - Satisfaction Level of Workers on Leave Facilities

Very Satisfied 0

0

Satisfied 321 61

Indifferent 162 31

un-Satisfied 42 8

Very SatisfiedSatisfiedIndifferentun-Satisfied

151

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 - 2 14 14 78

CDA 70 14 50 6 0 - 288

IESCO 70 - 4 46 20 - 194

KTM 35 - 17 10 8 - 114

OGDCL 50 - 27 13 10 - 167

PCP 50 - 5 30 15 - 140

PTCL 70 4 44 22 192

PTV 50 21 24 5 166

SNGPL 50 - 37 8 5 - 182

ZTBL 50 2 18 30 - 122

Total = (f) 525 14 169 213 129

fXi 70 676 639 258 0 1643

Variable Mean = Σ fXi 525 =1643 525 = 313

152

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Post Retirement Benefits (Like pension)

of workers is 313 which is greater than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for post retirement benefits of worker

The satisfied workers are 183 (14 + 169) but unsatisfied workers 129 are also

not less while 213 workers are indifferent which shows that unions need to put more

efforts for this facility (Table-30 amp Figure-11)

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers (see tables in appendices F-

1 to F-10 column management responses)

However the hypothesis 10 that the unions did not exert efforts for

postretirement benefits like pension of workers is rejected and alternate view is

established

Figure-11 - Satisfaction Level of Workers on Post Retirement Benefits

Very Satisfied 14

3

Satisfied 169 32

Indifferent 213 40

un-Satisfied 129 25 Very Satisfied

SatisfiedIndifferentun-Satisfied

153

Hypothesis 11 (H11) Unions did not exert efforts for arranging recreation

facilities

Table 31 Mean Calculations -Recreation facilities (Rfac) Satisfaction Level No VS S IND US VUS Σ fXi

Value (Xi) 5 4 3 2 1

Organization

ARL 30 2 10 8 10

CDA 70 58 12

IESCO 70 47 23 -

KTM 35 - 16 10 9

OGDCL 50 18 14 14 04 -

PCP 50 - - 30 20 -

PTCL 70 40 30

PTV 50 10 34 6

SNGPL 50 16 30 2 2 -

ZTBL 50 28 22 -

Total (f) 525 36 80 271 138 -

fXi 180 320 813 276 1589

Variable Mean = = Σ fXi 525 1589525 = 303

154

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for Recreational Facilities of workers is

303Which is slightly greater than 3 (Indifferent Level) showing that unions as a

whole have some exerted efforts for Health Facilities of worker

The satisfied workers are 116 (36 + 80 ) but unsatisfied workers 138 while

271 workers are indifferent which shows that unions need to put more efforts for this

facility (Table-31 amp Figure 12) The mean being more than 3 is due to the fact that 36

workers were very satisfied which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except in CDA KTM

PCP and PTCL (see tables in appendices F-1 to F-10 column management responses)

However the hypothesis 11 that the unions did not exert efforts for arranging

recreation facilities is rejected and alternate view is established

Figure-12 - Satisfaction Level of Workers on Recreational Facilities

Very Satisfied 36

7

Satisfied 80 15

Indifferent 271 52

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

155

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 32 Mean Calculations - training opportunities (Top) Satisfaction Level No VS S IND US VUS Σ fXi Values (Xi) 5 4 3 2 1 Organization ARL 30 18 8 4 CDA 70 10 20 40 IESCO 70 22 34 14 - KTM 35 22 13 OGDCL 50 4 19 20 7 - PCP 50 - - 24 26 - PTCL 70 16 40 14 PTV 50 16 24 10 SNGPL 50 - 10 34 6 - ZTBL 50 26 20 4 - Total (f) 525 4 137 246 138 fXi 20 548 738 276 1582

Variable Mean = Σ fXi 525 = 1582525 = 301

156

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for Training Opportunities of workers is 301

which is very marginally bigger than 3 (Indifferent Level) showing that unions as a

whole have exerted some efforts for training opportunities of worker but need to exert

more efforts

The satisfied workers 141 (4 + 137) and unsatisfied workers 138 are almost

equal with 246 indifferent workers showing that unions need to put more efforts for

this facility (Table-32 amp figure 13) The mean being more than 3 is due to the fact that

246 workers were indifferent which put more weight in satisfaction side

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except KTM (see tables in

appendices F-1 to F-10 column management responses)

However the as hypothesis 12 that unions did not exert efforts for arranging

training opportunities for workers is rejected and alternate view is established

Figure-13 - Satisfaction Level of Workers on Training Opportunities

Very Satisfied 4

1 Satisfied 137 26

Indifferent 246 47

un-Satisfied 138 26 Very Satisfied

SatisfiedIndifferentun-Satisfied

157

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers

wagessalary difference

Table 33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 6 8 12 4

CDA 70 28 28 14

IESCO 70 - 2 37 31 -

KTM 35 2 7 26

OGDCL 50 5 26 14 5 -

PCP 50 5 37 8

PTCL 70 32 38

PTV 50 23 14 13

SNGPL 50 - 17 28 5

ZTBL 50 2 20 22 6 -

Total (f) 525 13 131 231 150

fXi 65 524 693 300 1582

Variable Mean = Σ fXi 525 =1582 525 = 301

158

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organization for decreasing workers officers wage salary

gap is 301 which is very marginally greater than 3 (Indifferent Level) showing that

unions as a whole have exerted some efforts for decreasing gap of remunerations

between officers and worker

The satisfied workers 144 (13 + 131) are slightly less than 150 unsatisfied

workers with 231 workers indifferent (Table-33 amp Figure 14) The mean touching to

indifferent level is due to the fact that 13 responses are of very satisfied This demands

that unions need to put more efforts for exacting this facility

Management of all the organizations also confirmed that unions have been

negotiating with them for exacting this benefit for workers except the management of

IESCO KTM and PCP (see tables in appendices F-1 to F-10 column management

responses)

However the hypothesis 13 that unions did not exert efforts for decreasing

workersofficers wagessalary difference is rejected and alternate view is established

Figure-14 - Satisfaction Level of Workers on Decreasin Wage Difference

Very Satisfied 13

2

Satisfied 131 25

Indifferent 231 44

un-Satisfied 150 29

Very SatisfiedSatisfiedIndifferentun-Satisfied

159

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 34 Mean calculations - informing about rights (Ir) Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

(ARL) 30 16 12 2

(CDA) 70 54 10 6

(IESCO) 70 49 10 11

KTM 35 20 12 3

(OGDCL) 50 34 12 4

(PCP) 50 20 21 9

(PTCL) 70 18 34 18

PTV 50 30 10 10

(SNGPL) 50 25 14 11

(ZTBL) 50 4 34 7 5

Total (f) 525 4 300 142 79

fXi 20 1200 426 158 1804

Variable Mean = Σ fXi 525 =1804525 = 344

160

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations giving awareness to workers for their rights

is 344 which is bigger than 3 (Indifferent Level) showing that unions as a whole have

exerted efforts for informing worker about their rights as worker

On unionsrsquo efforts 304 (4 + 300) workers were satisfied as compared to 79 un-

satisfied workers which shows that unions have really exerted efforts for exacting this

facility (Table-34 amp Figure 15)

So the hypothesis 14 that unions did not exert efforts for informing workers

about their rights is rejected and alternate view is established

Figure-15 - Satisfaction Level of Workers on Informing About Rights

Very Satisfied 4

1

Satisfied 300 57

Indifferent 142 27

un-Satisfied 79 15

Very SatisfiedSatisfiedIndifferentun-Satisfied

161

Hypothesis 15 (H15) Unions did not exert efforts for workersrsquo education Table 35 Mean calculations - workersrsquo education (We)

Satisfaction Level No VS S IND US VUS Σ fXi

Values (Xi) 5 4 3 2 1

Organization

ARL 30 12 14 4

CDA 70 28 34 8

IESCO 70 - 36 24 10 -

KTM 35 12 17 6

OGDCL 50 - 21 19 10 -

PCP 50 - 30 20 -

PTCL 70 19 39 12

PTV 50 33 8 9

SNGPL 50 15 25 10

ZTBL 50 28 18 4

Total (f) 525 234 218 73

fXi 936 654 146 1736

Variable Mean = Σ fXi 525 = 1736525 = 331

162

Analysis

The variable mean of satisfaction level of responses of workers for efforts

exerted by unions of all the organizations for workersrsquo education is 331 which is

bigger than 3 (Indifferent Level) showing that unions as a whole have exerted efforts

for workersrsquo education facilities

On unionsrsquo efforts 234 workers were satisfied as compared to 73 un-satisfied

workers with 218 indifferent responses which shows that unions have really exerted

efforts for exacting this facility (Table-35 amp Figure-16) though there is need of more

efforts

Management of all the organizations also confirmed that unions have been

requesting for making arrangements for workers education (see tables in appendices F-

1 to F-10 column management responses)

So the hypothesis 15 that unions did not exert efforts for workers education

facilities is rejected and alternate view is established

Figure-16 - Satisfaction Level of Workers on Workers Education

Very Satisfied 0

0Satisfied 234 44

Indifferent 218 42

Un-Satisfied 73 14

Very SatisfiedSatisfiedIndifferentun-Satisfied

163

5311 Combined Mean of All Workers Variables = (Sw)

By using means of the individual variables calculated in tables 21 to 41

Combine Mean has been calculated by arranging this data in Table 42 and using the

Equation

Table 36 Summary of means of workers variables and calculation of combined mean

Variables (to measurement of unionrsquos efforts for workers)

Means of Satisfaction Level of Workers ( i)

Wris 340

Fbft 333

Jsec 379

Td 354

Linc 353

Ot 330

Wcon 372

Hfac 360

Ced 302

Prb 313

Rfac 303

Top 301

We 331

Wdf 301

Ir 344

Total = Σ i 5016

Combined Mean (Sw) = (Workers Satisfaction) 50615 = 334

164

Data from Tables 21 to 35

By putting values of the total second column in the equation

Combine Mean = Σ i N

SW = (Wris + Fbft +Jsec + Td + Hfac + Ced + Ot +Wcon +

+ Linc + Prb + Rfac + Top + Wdf + Ir + We)15

Sw = 501615 = 334 (approximately)

As the Combine Mean is 334 which is greater than 3 the lsquoindifferent levelrsquo so

it is accepted that workers are satisfied with the unionsrsquo efforts and unions are

successful in securing benefits for workers

165

Figure 17a Diagrammatic Presentation of Means of Workers Variables (Bar

Diagram)

(Height of bars indicates mean of variable)

0

1

2

3

4

5

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

Figure 17b Diagrammatic Presentation of Means of Workers Variables (Line Graph)

012345

Wris Fbft Jse

c TdLinc Ot

Wco

nHfac Ced Prb

Rfac Top We

Wdf Ir

(Sw)

166

532 CHI SQUARE TEST APLICATION

For testing the correctness of Hypotheses H1 to H15 Chi square has also been

applied in tables 37 to 51 on the data of respective variable Expected values (fe) have

been subtracted from (fo) observed values and squared and then divided by expected

values added to each other to obtain calculated value of chi square Then calculated

value is compared with table value If it is greater than table value then it is significant

so hypothesis of respective variable is to be rejected and opposite view is to be

established Observed values for chi square application have been fetched from row

stubbed lsquoTotal (f)rsquo in tables 21 to 35

167

Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers

Table 37 Chi square calculations Wage rise (Wris)

Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-( χ2)

(fo) 15 284 123 103 - 525

(fe) 13125 13125 13125 13125 - 525

(fo-fe)2 131514 2333256 6806 79806 -

χ2cal =

(fo-fe)2 fe 10296 17777 055 608 28686 28686

(Figures used in this table fetched from row stubbed Total (f) in table 21)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 28686 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

1 that unions did not exert efforts for wage rise of workers is rejected and the

alternate view that unions have exerted efforts for wage rise of workers is established

168

Hypothesis 2 (H2) Unions did not exert efforts for fringe benefits like bonus of workers Table 38 Chi square calculations - Bonus (financial benefits) (f-bft)

Satisfaction Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 15 272 111 127 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1339781 1981056 41006 18062

χ2cal =

(fo-fe)2 fe 10296 15093 312 013 25714 25714

(Figures used in this table fetched from row stubbed Total in table 22)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 25714 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis2 is

rejected and the alternate view that unions did exert efforts for exacting fringe

benefits like bonuses for the workers is established

169

Hypothesis 3(H3) Unions did not exert efforts for Job Security of workers

Table 39 Chi square calculations ndash Job security (Jsec)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 59 338 87 41 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 522006 4274556 195806 814506

χ2cal =

(fo-e)2 fe 3977 32630 1491 6214 44312 44312

(Figures used in this table fetched from row stubbed Total in table 23)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 44312 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis3 that unions did not exert efforts for job security of the workers is reject

and the alternate view that unions did exert efforts for job security of the workers is

established

170

Hypothesis 4 Unions did not exert efforts for Time decrease or offered resistance against time increase of workers

Table 40 Chi square calculation - Time reduction (Td) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) - 324 158 43 - 525

(fe) 175 175 175 525

(fo-fe)2 22201 289 17424

χ2cal =

(fo-fe)2 fe

12686 165 9956 22807 22807

(Figures used in this table fetched from row stubbed Total in table 24)

Significant df = 2 χ2tab at 005 = 599

The calculated value of Chi Square test 22807 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

4 is rejected and the alternate view that unions did exert efforts for decreasing

working hours of the workers is established

171

Hypothesis 5 (H5) Unions did not exert efforts for health facilities

Table 41 Chi square calculations - Health facilities (Hfac)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 28 332 93 72 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1066056 4030056 146306 351056

χ2cal =

(fo-fe)2 fe 8122 30705 1114 2674 42615 42615

(Figures used in this table fetched from row stubbed Total in table 25)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 42615 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

5 that unions did not exert efforts for exacting health facilities for the workers is

rejected and the alternate view is established

172

Hypothesis 6 (H) Unions did not exert efforts for workersrsquo children education facility

Table 42 Chi square calculations - Children education (Ced)

Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 6 127 261 131 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1568756 18062 1683506 0625

χ2cal =

(fo-fe)2 fe 11952 137 12826 0004 24791 24791

(Figures used in this table fetched from row stubbed Total in table 26)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 24791 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis 6 is

rejected and the alternate view that unions did exert efforts for exacting children

education facilities for the workers is established

173

Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working

Table 43 Chi square calculations - Over time payment (Ot) Satisfaction

Level

VS S IND US VUS Total Chi Sq- χ2

(fo) 3 245 181 96 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1644806 1293906 247506 124256

χ2cal =

(fo-fe)2 fe 12531 9858 1885 946 2522 2522

(Figures used in this table fetched from row stubbed Total in table 27)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 2522 is greater than table value of Chi

square 782 at 005 significance level and 3 degree of freedom so the Hypothesis 7

that unions did not exert efforts for overtime payment for over working is rejected and

alternate view is established

174

Hypothesis 8 (H8) Unions did not exert efforts for better working conditions

Table 44 Chi square calculations - working conditions (Wcon)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 43 333 106 43 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 778806 4070306 63756 778806

χ2cal =

(fo-fe)2 fe 5933 31011 485 5933 43362 43362

(Figures used in this table fetched from row stubbed Total in table 28)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi square test 43362 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

8 that unions did not exert efforts for better working conditions is rejected and

alternate view is established

175

Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease

Table 45 Chi square calculations - Leaves facility (Linc) Satisfaction

Level VS S IND US VUS Total Chi Sq-χ2

(fo) 321 162 42 525

(fe) 175 175 175 525

(Fo-fe)2 21316 169 17689

χ2cal =

(fo-fe)2 fe

12180 096 18108 22384 22384

(Figures used in this table fetched from row stubbed Total in table 32)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 22384 is greater than table value of

Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis

9 that unions did not exert efforts for leaves increase or resist against leaves decrease

is rejected and alternate view is established

176

Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension

Table 46 Chi square calculations - post retirement benefits facility (Prb)

Satisfaction

Level VS S IND US VUS Total Chi Sq- χ2

(fo) 14 169 213 129 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1374756 142506 668306 506

χ2cal =

(fo-fe)2 fe 10474 1085 5091 003 16653 16653

(Figures used in this table fetched from row stubbed Total in table 33)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 16653 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the

Hypothesis10 that the unions did not exert efforts for postretirement benefits like

pension of workers is rejected and alternate view is established

177

Hypothesis 11(H11) Unions did not exert efforts for arranging recreation facilities Table 47 Chi square calculations - Recreation facilities (Rfac) Satisfaction

Level VS S IND US VUS TOTAL Chi Sq-χ2

(fo) 36 80 271 138 - 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 907256 262656 1953006 4556

χ2cal =

(fo-fe)2 fe 6912 2001 1488 0347 23827 8663

(Figures used in this table fetched from row stubbed Total in table 34)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 23827 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

11 that the unions did not exert efforts for arranging recreation facilities is rejected

and alternate view is established

178

Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers

Table 48 Chi square calculations - Training facilities (Top) Satisfaction

Level

VS

S

IND

US

VUS

Total Chi Sq-

χ2

fo 4 137 246 138 525

fe 13125 13125 13125 13125 525

(fo-fe)2 161925 33062 1316756 4556

χ2cal =

(fo-fe)2 fe 12337 251 10032 347 22428 22428

(Figures used in this table fetched from row stubbed Total in table 35)

Significant df = 3 χ2tab at 005 = 782

The calculated value of Chi Square test 22428 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

12 that unions did not exert efforts for arranging training opportunities for workers is

rejected and alternate view is established

179

Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers wagessalary difference Table 49 Chi square calculationsndashDecreasing workers officers wage salary gap (Wdf)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 13 131 231 150 525

(fe) 13125 13125 13125 13125 525

(Fo-fe)2 1398306 0625 995006 35156

χ2cal =

(fo-fe)2 fe 10653 0004 7581 267 18501 18501

(Figures used in this table fetched from row stubbed Total in table 36)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 18501 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

13 that unions did not exert efforts for decreasing workersofficers wagessalary

difference is rejected and alternate view is established

180

Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights

Table 50 Chi square calculations - Informing about rights (Ir)

Satisfaction

Level

VS S IND US VUS TOTAL Chi Sq- χ2

(fo) 4 300 142 79 525

(fe) 13125 13125 13125 13125 525

(fo-fe)2 1619256 2847656 11556 273006

χ2cal =

(fo-fe)2 fe 12337 21696 088 2080 36201 36201

(Figures used in this table fetched from row stubbed Total in table 37)

Significant df = 3 χ2 tab at 005 = 782

The calculated value of Chi Square test 36201 is greater than table value of

Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis

14 that unions did not exert efforts for informing workers about their rights is rejected

and alternate view is established

181

Hypothesis 15 (H15) Unions did not exert efforts for arranging education facilities for workers

Table 51 Chi square calculations - workersrsquo education (We)

Satisfaction

Level

VS

S

IND

US

VUS

TOTAL Chi Sq- χ2

(fo) 234 218 73 525

(fe) 175 175 175 525

(Fo-fe)2 3481 1849 10404

χ2cal =

(fo-fe)2 fe

1989 1056 5945 899 899

(Figures used in this table fetched from row stubbed Total in table 38)

Significant df = 2 χ2 tab at 005 = 599

The calculated value of Chi Square test 8989 is greater than table value of Chi

square 599 at 005 significance level and 2 degree of freedom so the Hypothesis 15

that unions did not exert efforts for arranging education facilities for workers is

rejected and alternate view that the unions exerted efforts for arranging education

facilities for workers is established

182

533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS

Efforts of unions for benefits and interest of employers have been measured by

Two variables These variables are Productivity or Efficiency increase (Pin)

Enhancement of workplace harmony (Wph) Three tables (table 52 to 54) have been

constructed In table 52 and 53 Means of individual variables are calculated and in

third table combine mean is calculated

First column contains the name of organizations column two contains

response of employersrsquo representative on the variable in the form of satisfaction level

and column three contains the value of the response In the last row all these values of

third columns are added and divided by number of respondents ie 10 to calculate the

variable mean If mean is equal to 3 then aggregately all the respondents are

indifferent and if variables mean is greater than indifferent level ie 3 then employers

are satisfied on unionsrsquo efforts and unions are successful to the extent of this variable

If mean of variable is less then 3 then unions are failed to the extent of this variable

Combined mean of two variables has been calculated in third table 54

Combine mean more than 3 shows satisfaction of management with unionsrsquo

performance and value of combine mean less than 3 indicates that unionsrsquo have not

exerted efforts for employers benefits so unions are not beneficial and value of

combine mean equal to 3 shows that employers is indifferent and unionsrsquo presence is

neither beneficial nor harmful

183

Hypothesis 16 (H16) Unions exerted no efforts for motivating workers to increase productivityefficiency

Table 52 Calculation of mean of management responses for unionsrsquo

efforts for productivity efficiency increase) (Pin)

Organization Name Management Responses

Value of Responses (Xi)

ARL IND 3

CDA IND 3

IESCO S 4

KTM S 4

OGDCL IND 3

PCP IND 3

PTCL IND 3

PTV IND 3

SNGPL IND 3

ZTBL S 4

Total 33

Variable Mean 3210 = 33

Variable Mean = Σ Xi N = 3210 = 33

184

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for increase of productivity or efficiency (by working in better way

with minimum loss and of good quality in minimum possible time) is 33 which is

slightly more than 3 (indifferent level) indicating that unions are exerting slight

efforts

Therefore the hypothesis 16 that unions exerted no efforts for motivating

workers to increase productivity is rejected and alternative view unions exerted efforts

for motivating workers to increase productivity is established

On viewing individually employers of only three organizations are satisfied

and of seven organizations are indifferent So these unions need to put more efforts in

motivating workers for increasing productivity efficiency

Figure-18 - Satisfaction Level of Employers on ProductivityEfficienc Increase

Indifferent 7 70

Satisfied 330

un-Satisfied 0 0

Very Satisfied 0

0Very SatisfiedSatisfiedIndifferentun-Satisfied

185

Hypothesis 17 Unions exerted no efforts for workplace harmony Table 53 Calculation of mean of management responses for workplace harmony

(Wph) Organization Name

Management Response

Values of Responses (Xi)

ARL S 4

CDA S 4

IESCO FS 5

KTM S 4

OGDCL S 4

PCP S 4

PTCL IND 3

PTV S 4

SNGPL S 4

ZTBL S 4

Total 40

Variable Mean = Σ Xi N = 4010 = 4

186

Analysis

The value of variable mean of responses of management on unionsrsquo efforts for

exhorting workers for creating harmony at workplace is 4 which is more than 3

(indifferent level) Therefore the hypothesis 17 that unions exerted no efforts for

workplace peace and harmony is rejected and alternative view unions exerted efforts

for workplace peace and harmony is established

Viewing individually employer of one organization ie IESCO is fully

satisfied and of eight organizations are satisfied Management of only one

organization ie PTCL is indifferent So union of PTCL needs to put more efforts in

creating peace and harmony at workplace Otherwise over all performance of unions is

satisfactory

Figure-19 - Satisfaction Level of Employers on Work Place Harmony

Satisfied 8 80

Indifferent 1 10

un-Satisfied 0 0

Very Satisfied 1

10

Very SatisfiedSatisfiedIndifferentun-Satisfied

187

Table 54 Calculation of Combined Mean of Management Responses (Se)

Variables (for measurement of

unionsrsquo efforts for Employers)

Means of Satisfaction Level of

Employer ( i)

Organization

Pin 33

Wph 4

Total of Means 73

(Data from calculations of tables 52 amp 53

By putting the values of means of columns in the equation

Combine Mean = Σ i N = Se = (Pin + Wph)2

Se = (33 + 40)2 = 732

Se = 732 = 365

In this analysis PTCL management has lowest level of satisfaction on unionsrsquo

role because union recently called an unsuccessful strike lasting for 13 days against

the government of Pakistanrsquos decision of privatization of the company Performance

of unions of other organizations is satisfied with mean greater than indifferent level

ie 3

As the combined mean of all the variable measuring unions efforts for

developing human resources for the benefit of employer is 365 that is greater than 3

the indifferent level so it is established that unions are working for interest of

employers and they are satisfied with them and unions are successful in satisfying

employers

188

Figure 20a Diagrammatic Presentation of Means of Employers Variables

(Bar Diagram)

012345

Pin Wph Se

(Height of bars indicates mean of variable)

Figure20b Diagrammatic Presentation of Means of Employers Variables

(Line Graph)

0

1

2

3

4

5

Pin Wph Se

189

No Success

Partial Success

Partial Success

Success S e = 365 Sw = 334

Figure 4 Diagrammatic Presentation of success of unions (Success Matrix)

5 1 5 2 5 3 5 4 Sw = 5 Se = 5

Sw = 5 Se = 1

Sw = 4 Se = 1

Sw = 3 Se = 1 Tolerable

Sw = 2 Se = 1

Sw = 1 Se = 1

11 12 13 14 Sw = 1 Se = 5 In the success matrix of diagram 4 satisfaction of workers is represented vertically

and satisfaction of employers is represented horizontally The dark grey portion of the

matrix shows no success or failure zone In this cage both Sw and Se are less than 3

(these are 11 21 31 22 32 or 12 13 ) Two light grey portions are areas of partial

success The upper light grey cage where Sw is greater than 3 showing workers are

satisfied but Se is less than 3 showing employers are unsatisfied While the Lower

light grey portion where Se is greater than 3 showing employers are satisfied but Sw is

less than 3 showing workers are unsatisfied also indicates partial success Joining

point of all four cages is tolerable point where both Sw and Se are 3 White cage

where both Sw and Se are more than 3 is success zone Values of both Sw (334) and

Se (365) are lying in success cage

190

54 COMPARISON OF UNIONIZED AND NON-UNIONIZED WORKERS

To assess the unions role in securing the benefits for workers comparison of

facilities availed by permanent workers and temporary workers working in the same

organization has been made It is to determine whether facilities availed by unions

members are really due to unionsrsquo efforts or just because of government blessings For

this comparison of facilities ie Wage rise Job Security Daily working hours

Working conditions Facilities for children education Health care or medical treatment

facilities Fringe benefits like bonus Other of financial benefits and Yearly paid leaves

for both categories of workers has been made in the tables 55 and 56 Table 55 is for

facilities availed by Temporary workers and table 56 is for facilities by permanent

workers

Table 55 Facilities of temporary workers (Not Union Members)

Org Name

Wris Jsec Weekly Hours

Wcon Child education

Health facilities

Fringebft Bonus

Misc-All

Yearly Leaves

ARL Little No 46 Right No No No No 32

CDA Little No 39 Right No Yes Yes Yes 48

IESCO Little No 375 Right No No No No 22

KTM Little No 48 Right No Yes No No 18

OGDCL Little No 385 Right No Yes Yes No 40

PCP - - - - - - - - -

PTCL Little No 41 Right No No No No 36

PTV Little No 365 Right No Yes Yes No 21

SNGPL Little No 39 Right No No No No No

ZTBL Little No 39 Right No No No No No

No temporary worker in the organization

191

Table 56 Facilities of Permanent Workers (Union Members)

Org Name

Wris

Jsec Weekly Hours

Wcon Child educati

on

Health facilities

Fringebft

Bonus

Misc-All

Yearly Leaves

ARL 18 Yes 40 Right Little Yes 4+ Yes 29-40

CDA 20 Yes 39 Right Little Yes 2 Yes 68

IESCO 15 Yes 375 Right Little Yes No Yes 73

KTM - Yes 48 Right Little Yes 1 Yes 40

OGDCL 20 Yes 385 Right Little Yes 2+ Yes 68

PCP 15 Yes 40 Right Little Yes No Yes 68

PTCL 35 Yes 41 Right Little Yes 1 Yes 68

PTV 25 Yes 365 Right Little Yes 1 Yes 68

SNGPL 15 Yes 39 Right Little Yes 2 Yes 68

ZTBL 15 Yes 39 Right Little Yes 2 Yes 68

Wage Rise Permanent unionized workers are availing increase in wages in every

charter of demand that is from 15 to 35 percent whereas temporary non unionized

workers receive very little wage rise Wage rise sometimes received by permanent

workers announced by government in annual budget is besides this Where as

temporary workers are also deprived from this blessing as mater of right

Job Security Temporary workers do not have job security while permanent workers

have full job security and when 750 staff members ZTBL were forcefully retired in

December 2005 their union went on strike which lasted for 33 days and management

had to reinstate them

Daily Working Hours Working hours are same for both categories of workers as

usually time is fixed by government and not demanded in charter of demand

192

Working Conditions Working conditions are same for both categories of workers

because both work in the same premises

Children Education Facilities Temporary workers have no employerrsquos provided

facility at all for children education whereas permanent workers are having it though

condition for them is not very satisfactory

Health Facilities All the permanent workers are enjoying health facilities usually

for self and for family but temporary workers in four organizations avail it for self

only

Financial Benefits Permanent workers of 8 organizations are enjoying bonus

facilities whereas temporary workers only in three organizations are enjoying it and

workers commented that this is also because of unions efforts

Miscellaneous Allowances Permanent workers of all the organizations are enjoying

any of small financial allowance or facility but temporary workers of only one

organization CDA are enjoying it

Yearly Paid Leaves Permanent workers of all the organizations are enjoying yearly

leaves facility much more than their temporary colleagues In majority of

organizations leaves facilities are 68 (20 casual leaves and 48 privileged earn leaves)

Privilege leaves are encashable at the time of retirement Temporary workers in some

organizations have no leave facility and if they go on leave it is treated as with out

pay As in SNGPL and ZTBL and situation in other organizations is also poor

It is revealed from comparison of both the tables that these facilities are

enjoyed by majority of unionized workers while non-unionized workers are not

availing these facilities if these facilities are enjoyed by non-unionized workers in any

organization beneficiaries admitted that this is because of unionsrsquo efforts

193

56 WORKERS RESPONSES FOR QUESTIONS ABOUT ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS STATUS AS COMPARED TO PAST

These all points have been assessed by asking questions given in the table 57

and calculating percentage of the responses

Table 57 Essentiality inter union relations and unions status as compared to past

QNO18 Is union Essential in your organization

QNO 19 Are inter union relations good in your organization

QNO 20 Are unions of today weaker than unions in the past

Number of Number of

Responses

Number of

Responses

Number of

Responses

Org Name Res Unions in Org

Yes No Yes No Yes No

ARL 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

AGE 100 96 4 14 86 81 19

194

Ninety six percent workers are favoring the need of unions for workers in the

organizations and commented that unions provide job security and exert efforts for

financial benefits and also provide courage and lessens the fear of employers

However they stressed on the need of exertion of more efforts by unions for exacting

benefits for workers Few workers also groused for unionsrsquo partiality and inter union

rivalry Only 4 percent replied that unionsrsquo existence or non-existence makes no

benefit or harm to the workers

Eighty six percent workers replied that unions remain in conflict with each

other where unions in the organization are more than one This inter union rivalry

weakened their power and damaged their efforts for securing benefits for workers

Eighty one percent workers commented that unions of present day are

comparatively weaker than unions of a decade before and during interview

commented that unions in the democratic regime work well while in non-democratic

regime they become weak and less effective

CHAPTER 6

DISCUSSION CONCLUSION AND RECOMMENDATIONS

61 DISCUSSION

In the light of analysis of data made in chapter four the role of labor unions in

working for benefits of workers and employers is discussed here for arriving at a

conclusion This role is discussed in two ways ie organization-wise performance of

every union and variable-wise collective performance of all unions

611 Organization-Wise Performance of Unions

Analysis of unionsrsquo performance in context of efforts for securing benefits for

workers and protecting their interest has been made in tables 1 to 10 and of unionsrsquo

performance in context of efforts for protecting interest of employer has been made in

tables 11 to 20 Employerrsquos endorsement on unionsrsquo performance is revealed in

columns of employer responses by Y or N in tables in appendices F-1 to F-10

Performance of the unions is discussed below in the light of data analysis of

previous chapter

6111 ARL Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level organizational mean 356 more than 3 It means

majority of workers are satisfied and union is successful Employer has also confirmed

their efforts

In employerrsquos context the performance of union is satisfactory for establishing

work place peace and harmony but at indifferent level in productivity or performance

increase However as a whole performance of ARL union is satisfactory with 35 value

196

of mean of satisfaction level of all the variables of employer Majority of workers

confirmed exertion of unionrsquos efforts for employer Its means union is successful

6112 CDA Union

In workers context the performance of union is satisfactory with satisfaction

level mean 336 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for Time Decrease

Leave increase Recreation facilities and workers education facilities

In employerrsquos context the performance of union is satisfactory for establishing

work place harmony while at indifferent level in Productivity or performance increase

but as a whole performance of CDA union is satisfactory with 35 value of mean of

satisfaction level of all the employerrsquos variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

6113 IESCO Union

In workers context the performance of union is satisfactory with satisfaction

level mean 312 more than 3 As the score of union is hardly above the indifferent

level and union needs to put more efforts Employer has also confirmed their efforts

except for financial benefits workersrsquo officersrsquo wage difference leave increase and

Workersrsquo education

In employerrsquos context the performance of union is satisfactory for

improvement of Efficiency of workers and establishing work place harmony as a

whole performance of IESCO union is satisfactory with 450 value of mean of

satisfaction level of all the variables Majority of workers confirmed exertion of

unionrsquos efforts for employer It means employer is satisfied and union is successful

6114 KTM Union

In workers context the performance of union in securing benefits for workers is

satisfactory with satisfaction level weighted mean 322 more than 3 Employer has

197

also confirmed their efforts except for wage rise workers officers wage difference

time decrease leave increase overtime payment recreation facilities and training

opportunities Wages in textile sector are fixed by Wage Board where union union has

no representation so wages are not fixed properly Unionrsquos efforts in social services

health facilities were acknowledged by workers

In employerrsquos context the performance of union is satisfactory for every

variable with 400 value of mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6115 OGDC Union

In workers context the performance of union is satisfactory with satisfaction

level weighted mean 361 more than 3 It means majority of workers are satisfied and

union is successful Employer has also confirmed their efforts

In employersrsquo context the performance of union is satisfactory as a whole with

350 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

6116 PCP Union

In workers context the performance of union is satisfactory with satisfaction

level mean 332 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for workers officers wage

difference education of workers children recreation facilities training opportunities

and workersrsquo education

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

198

6117 PTCL Union

In workers context the performance of union in exerting efforts for securing

benefits for workers is hardly satisfactory with satisfaction level mean 302 which is

negligibly more than 3 It means satisfactory and unsatisfactory workers are almost

equal and union is marginally successful and needs improvement in efforts Employer

has confirmed their efforts except for children education post retirement benefits and

recreation facilities

In employerrsquos context the performance of union is 3 only equivalent to

indifference level as value of weighted mean of satisfaction level of all the variables

A marginal majority of workers confirmed exertion of unionrsquos efforts for employer It

means employer is indifference with unionrsquos performance and PTCL union needs

much improvement in this area

6118 PTV Union

In workers context the performance of union is satisfactory with satisfaction

level mean 350 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts except for recreation facilities

In employerrsquos context the performance of union is satisfactory as a whole with

350 value of weighted mean of satisfaction level of all the variables Majority of

workers confirmed exertion of unionrsquos efforts for employer It means employer is

satisfied and union is successful

6119 SNGPL Union

In workers context the performance of union for securing benefits for workers

is satisfactory with satisfaction level mean 354 more than 3 It means majority of

workers are satisfied and union is successful Employer has also confirmed their

efforts except for time decrease and leaves increase

In employerrsquos context the performance of union is satisfactory as a whole with

35 value of mean of satisfaction level of all the variables Majority of workers

199

confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and

union is successful

61110 ZTBL Union

In workers context the performance of union is satisfactory with satisfaction

level mean 345 more than 3 It means majority of workers are satisfied and union is

successful Employer has also confirmed their efforts

In employerrsquos context the performance of union is satisfactory for all the

variables and as a whole performance of ZTBL union is satisfactory with 400 value of

weighted mean of satisfaction level of all the variables Majority of workers confirmed

exertion of unionrsquos efforts for employer It means employer is satisfied and union is

successful

612 Variable-Wise Performance of Unions

How unions have been exerting efforts for workers benefits has been enquired

from workers and responses of workers analyzed by obtaining their weighted

lsquoarithmetic meanrsquo in tables 21 to 35 and by applying lsquochi squarersquo in tables 37 to 51

Because one point of the lsquoExisting Problemrsquo was that unionsrsquo membership is declining

and it was assumed that this might be because unions are not exerting efforts for

securing benefits or protecting interest of workers

Similarly how unions have been exerting efforts for employerrsquos interest have

been enquired from employers and analyzed their responses by obtaining their

arithmetic mean in tables 52 and 53 Because other point of the lsquoExisting Problemrsquo

was that unions only talk about workers rights and ignore their obligations are

responsible for low productivity and it was assumed that it might be because unions

are not exerting efforts for exhorting workers for taking care of employersrsquo interest

200

6121 Workers relating variables

Wage Rise Over all sample mean of the satisfaction level of workersrsquo responses is

340 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for wage rise

Efforts of unions for wage rise can be estimated from this fact that at time of survey

(December 2006) minimum wage was Rupees 4000 but more than 324952

workers were earning wages between Rupees 5000 and 10000 and more than 4952

between 10000 and 20000 and 118 percent were getting wages even more than rupees

20000 (Appendix C-3) Rise in wages was 15 to 35 except of KTM (see

Appendix C-1) This is really an achievement at the part of labor unions

Fringe Benefits Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 333 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

securing fringe benefits of workers Except PCP workers of all other organizations are

getting bonuses and in some organizations bonuses are two or more ARL paid 5 and

KTM has paid 4 bonuses in previous charter (Appendix C-1) ARL KTM and

OGDCL pay 5 percent of their profit to workers and KTM besides this also make

payment to social security and 5 percent of workers salary to Employees Old Age

Benefit department (Appendix C-1) All these benefits are fruit of unionsrsquo efforts

Job Security Over all sample Mean of the Satisfaction Level of workersrsquo responses is

379 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for Job Security

of workers Employees of all the organizations under study are enjoying job security

due to unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts

of unions for job security only 41 workers were unsatisfied (Table23)

Time Reduction Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 354 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

reduction in daily duty hours or resisting the increase of working hours by employer

201

Only one organization KTM has 48 working hours per week at the rate of 8 hours per

day Two organizations ARL and PCP have 40 working hours per week and other

seven organizations have weekly working hours less than 40 (Appendix C-2) This

time reduction of time less than 40 hours is really efforts of unions to comfort the

workers and causing increase of their motivation On unionsrsquo efforts for time decrease

324 respondents expressed satisfaction and only 43 workers expresses un-satisfaction

(Table-24)

Health Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 360 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

Health facilities for workers All the organizations are providing medical treatment

facilities to their workers (Appendix C-2) and 360 workers expressed their satisfaction

as compared to 72 un-satisfied workers (Table-25)

Children Education Over all sample Mean of the Satisfaction Level of workersrsquo

response is 302 which is minutely more than indifferent level (ie 3) Chi square test

for this is significant resulting that unions as a whole have been exerting efforts for

children education facilities for workers but performance of unions of five

organizations is not satisfactory and they need to improve their efforts in this regard

The satisfied workers 133 and unsatisfied workers 131 are almost equal with 261

indifferent workers on this facility which shows that unions need to put more efforts

for this facility (Table-26)

Over Time Payment Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 330 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for

payment of overtime if workers work more than duty hours On unionsrsquo efforts 248

were satisfied as compared to 96 workers while 181 workers were indifferent (Table-

27)

Working Conditions Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 372 which is more than indifferent level (ie 3) Chi square test for this

is also significant resulting that unions as a whole have been exerting efforts for better

202

working conditions On unionsrsquo efforts 376 workers were satisfied as compared to 43

un-satisfied workers (Table-28) It means unions have really exerted efforts for

working conditions

Leave Facility Over all sample Mean of the Satisfaction Level of workersrsquo responses

is 353 which is more than indifferent level (ie 3) Chi square test for this is also

significant resulting that unions as a whole have been exerting efforts for increasing

yearly leaves or resisting against the decrease of yearly leaves of workers Annual paid

leaves for seven organizations are 68 and for IESCO are 73 where as only for two

organizations are 40 This is a reasonable time for rest and enjoyment On unionsrsquo

efforts 321 workers were satisfied as compared to 42 un-satisfied workers which

shows that unions have really exerted efforts for exacting this facility (Table-29)

Post Retirement benefits (Pension) Over all sample Mean of the Satisfaction Level

of workersrsquo responses is 313 which is more than indifferent level (ie 3) Chi square

test for this is also significant resulting that unions as a whole have been exerting

efforts for Post retirement benefits for workers The Mean of satisfaction level of

workers for unionsrsquo efforts for this variable is hardly more than 3 so unions need to

improve their efforts in this regard The satisfied workers are 183 but unsatisfied

workers 129 are also not less while 213 workers are indifferent which shows that

unions need to put more efforts for this facility (Table-30)

Recreational Facilities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 303 which is hardly more than indifferent level (ie 3) Chi square test

for this is also significant resulting that unions as a whole have been exerting efforts

for recreational facilities The Mean of satisfaction level of workers for unionsrsquo efforts

for this variable is hardly more than 3 so unions need to improve their efforts in this

regard The satisfied workers are 116 but unsatisfied workers 138 while 271 workers

are indifferent which shows that unions need to put more efforts for this facility

(Table-31) The mean being more than 3 is due to the fact that 36 workers were very

satisfied which put more weight in satisfaction side

Training Opportunities Over all sample Mean of the Satisfaction Level of workersrsquo

responses is 301 which is hardly more than indifferent level (ie 3) Chi square test

203

for this is resulting that unions as a whole have been exerting efforts for training

opportunities for workers The Mean of satisfaction level of workers for unionsrsquo

efforts for this variable is hardly more than 3 so unions need to improve their efforts in

this regard The satisfied workers 141 and unsatisfied workers 138 are almost equal

with 246 indifferent workers showing that unions need to put more efforts for this

facility (Table-32) The mean being more than 3 is due to the fact that 246 workers

were indifferent which put more weight in satisfaction side

Decreasing Workers Officers Wage gap Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 301 which is hardly more than indifferent level (ie

3) Chi square test for this is also significant resulting that unions as a whole have

been exerting efforts for decreasing gap of workers and officersrsquo wages The Mean of

satisfaction level of workers for unionsrsquo efforts for this variable is hardly more than 3

so unions need to improve their efforts in this regard The satisfied workers 144 are

slightly less than 150 unsatisfied workers with 231 workers indifferent (Table-33)

The mean touching to indifferent level is due to the fact that 13 responses are of very

satisfied This demands that unions need to put more efforts for exacting this facility

Information (Awareness) about Rights Over all sample Mean of the Satisfaction

Level of workersrsquo responses is 344 which is more than indifferent level (ie 3) Chi

square test for this is also significant proving that unions as a whole have been

exerting efforts for awareness of workers about their rights On unionsrsquo efforts 304

workers were satisfied as compared to 79 un-satisfied workers which shows that

unions have really exerted efforts for exacting this facility (Table-34)

Workersrsquo Education Collective Mean of the Satisfaction Level of workers

responsesrsquo is 331 which is more than indifferent level (ie 3) Chi Square test for this

is also significant proving that unions as a whole have been exerting efforts for

arranging workers education On unionsrsquo efforts 234 workers were satisfied as

compared to 73 un-satisfied workers with 218 indifferent responses which shows that

unions have really exerted efforts for exacting this facility (Table-35) though there is

need of more efforts

204

The Combined Mean of satisfaction level of workers on efforts of unions for

securing benefits for them or protecting their rights is 334 (SW = 334) and Chi square

tests for all variables are also significant acknowledging the exertion of unionsrsquo efforts

for workersrsquo benefits

Hypotheses from H1 to H15 for all the variables have been rejected and

alternate view has been established This proves that unions as a whole have satisfied

their workers and they are successful in this respect

6122 Employer relating variables

Productivity Increase or Efficiency Improvement Over all sample Mean of the

Satisfaction Level of employersrsquo responses is 330 which is more than indifferent level

(ie 3) proving that unions as a whole have been exerting efforts by exhorting

workers for productivity increase performance or efficiency improvement of the

workers of the organizations Except employer of IESCO KTM and ZTBL employers

of other organizations are indifferent with union performance So these unions need to

improve the efforts in this respect

Work Place Harmony Over all sample Mean of the Satisfaction Level of employersrsquo

responses is 400 which is more than indifferent level (ie 3) proving that unions as a

whole have been exerting efforts for improvement of workplace peace and harmony of

the organization Only the management of PTCL was indifferent with union

performance So this union needs to improve the efforts in this respect

The Combined Mean of satisfaction level of employers on efforts of unions for

securing benefits for them is 365 (Se = 365 More than 50 percent workers also

confirmed that unions have been exerting efforts by exhorting and motivating them for

improving performance (increase of productivity and efficiency) and workplace

harmony It has also been confirmed by workers (see YES responses of respective

variables in column 2 of table in appendices F-1 to F10) The Hypotheses 16 and 17

have been rejected This proves that unions as a whole have satisfied the employers

and this is success of unions

205

613 Comparison with Non-Unionized Workers

All the benefits secured by unions for their workers were not enjoyed by

temporary workers (comparison of facilities in tables 55 amp 56) and if they are availing

a facility or favor they admitted that it is because of unions struggle for them such as

medical treatment or bonus facility in some organizations

Besides this ninety six percent of workers replied that unions are necessary for

organizations for watching the interest of workers and obtaining benefits for them

(Question 18 of the questionnaire 2 and table 57)

However unions have some weakness at their parts and unions could not play a

beneficial role in obtaining some facilities such as

1 Education facilities for the children of workers in the form of Education

allowance Scholarships or establishment of quality schools Mean of

satisfaction of workers on unionsrsquo struggle for this facility is 302 which is

marginally above the required level and unions need much to do in this regard

2 Post retirement benefits amp Pension Mean of satisfaction of workers on unionsrsquo

struggle for this facility is 313 which is slightly above the required level

showing that satisfaction level mean is not good and unions need to put more

efforts in this respect

3 Recreation facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility is 303 which is marginally above the required level and unions are

required to exert more efforts for this

4 Training facility Mean of satisfaction of workers on unionsrsquo struggle for this

facility was 301 which is poorly above the required level Training is of vital

importance for HRD so unions need to put more efforts for this

5 In struggle for decreasing officers workers wage gap the Mean of satisfaction

of workers on unionsrsquo struggle for this facility is 301 which is marginally

above the required level and requires more struggle

206

Unions no doubt as a whole were marginally successful in arranging four out

of fifteen facilities ie Education facilities for children of workers Recreation

facilities Training opportunities and Decreasing gap between officers salaries and

workers wages even though few unions were successful in securing these facilities as

well but unions collectively remained very successful in wining other eleven facilities

and as a whole the mean of all fifteen facilities is 334 Values of Chi Squires of all the

variables were significant compelling to accept alternate hypothesis which is other

name of significant unionsrsquo role for exerting efforts to secure workers benefits and

playing a positive role in HRD It means unions did arrange many facilities for

workers and when it is compared with temporary workers who were not getting these

facilities and benefits and if they could avail some benefits even these are because of

unionsrsquo efforts or unionsrsquo Therefore Declining in membership is not because of

unionsrsquo failure so causes of unionsrsquo membership decline are to be sought somewhere

else

Unionsrsquo role for serving the purpose of employers is also very significant as

the combine mean of all variable showing employers interest is 365 above the union

tolerable level of 300 So unions are playing a positive role for workers benefits as

well as for employers benefit and have built positive industrial relations

Ninety six percent workers commented that unions are necessary for them it is

to be admitted that unions are necessary for organizations However 86 workers

expressed their unhappiness on inter union rivalry rendering them weak because 81

workers were of the opinion that present unions became weaker than unions in the past

decade so they should get rid of this weakening vice

As a consequence of information obtained as responses from workers and

management of the sampled organizations and above detailed discussion the opinion

that was developed in chapter one (in the paragraph of Existing Problem) ie cause of

membership decline might be unions are not exerting efforts for securing facilities

and benefits for workers and the allegation that unions only talk about workers rights

and ignore responsibilities and largely responsible for low productivity now has

changed to new opinion that unions

207

1 Exert efforts for securing benefit for their workers

2 Do talk about workersrsquo rights but do not ignore their obligations

3 Motivate the workers for increase of productivity efficiency as acknowledged

by management with satisfaction level mean 32

4 Do struggle to improve work place harmony (managementsrsquo mean of

satisfaction level is 40) As they try to motivate workers to improve work

place harmony so they do not interfere in the administration and smooth

working at the workplace

Analysis of data and discussion also gave answers of research questions

62 ANSWERS OF RESEARCH QUESTIONS

1 To much extent the unions in Pakistan are effective in securing benefits and

facilities for workers like

i- Rise in wages salaries ranging from15 to 35 with satisfaction level

mean 34

ii- Fringe benefits such as bonus with satisfaction level mean 33

iii- Providing job security with satisfaction level mean 379

iv- Relief in working hours if not successful in time reduction but successful

in resisting increase of working hours with satisfaction level mean 354

v- Successful in procuring health facilities for workers with satisfaction

level mean of 360

vi- played marginal role in procuring educational facilities for children of

workers and the mean value of workers satisfaction on their struggle is

302 Unions need to improve their efforts in this respect

208

vii- Successful in procuring overtime facility with satisfaction level mean

330

viii- Successful in arranging good working conditions with workers

satisfaction level mean 372

ix- If not successful in Leaves increase but successful in resisting decrease of

leaves The satisfaction level of workers is 353

x- As whole slightly successful in procuring post retirement benefits for

their workers with workers satisfaction level mean of 313 and need to

put more efforts

xi- As a whole marginally successful in procuring recreational facilities for

their workers with workers satisfaction level mean of 303 Unions need

to exert more efforts

xii- As a whole marginally successful in procuring training opportunities for

their workers with workers satisfaction level mean of 301 Unions need

to exert more efforts

xiii- As whole were marginally successful in decreasing gap of workersrsquo

wages and officersrsquo salaries and workers satisfaction level mean is 301

Unions need to exert more efforts

xiv- Playing satisfactory role in giving the workers awareness about their

rights with workers satisfaction level mean of 344

xv- Unions also played satisfactory role in affording education facilities for

workers with satisfaction level mean 331

2- To much extent the unions in Pakistan are effective in protecting employersrsquo

interests by

i) Increasing productivity or improving efficiency of workers with

employersrsquo satisfaction level mean of 330

209

ii) Improving harmony at workplace with employersrsquo satisfaction level

mean of 400

63 CONCLUSION

By viewing results of data analysis and detailed discussions it is found that

unions under study have been proved successful in securing benefits for workers

which is apparent from satisfaction level of the workers with numeric value 334 at 5

point Likert scale Similarly it is also found that unions under study have exerted

efforts in protecting interest of employers which is apparent from satisfaction level of

the employers with numeric value of 365 at the same scale Though the performance

might have been very satisfactory if these averages were either 5 (which is ideal and

highest level of satisfaction) or near to five These are overall average result because

performance of some unions for some variables is not satisfactory Particularly

performance of unions in securing benefits like lsquochildren educationrsquo lsquorecreation

facilitiesrsquo lsquotraining opportunitiesrsquo and decreasing difference of remunerations (wages

and salaries) of workers and officers is not very appreciable and needs more efforts to

be done by unions As the scale for success is means of satisfaction levels more than

3 and both these combine means are greater than 3 so unionsrsquo overall performance is

satisfactory It has further been found that workers deem that presence of unions in the

organization is necessary which they expressed with 96 percent majority and inter

unions relations are needed to be improved because 86 percent workers opined that

inter union relations are not good Further more according to IRO 2002 work council

comprising representatives of both management and workers is necessary but

presently out of ten organizations studied work council exists only in three

organizations which is 30 percent of sample and unions are required to exert efforts to

establish work council in rest of 70 percent organizations

In the light of above lines it is concluded that Null Hypothesis is rejected and

alternate hypothesis is proved right that the unions are beneficial bodies for

organizations and ultimately for Human Resource Development Although there is

210

room for improvement in exerting efforts for securing benefits for workers as well as

for protecting employersrsquo interest and improvement of their inter unions relations

64 SUGGESTIONS AND RECOMMENDATIONS

Unions no doubt are playing a positive role in industrial relations for HRD

being successful in exacting benefits and facilities from employers for their workers

and are also protecting interests of employers by stressing workers to increase

productivity improve discipline enhancing workplace peace and harmony and

keeping good attitude with employer or management But still there are weak areas

where more efforts are needed so they should

1- Exert efforts to exact better facilities for education of workersrsquo children

2- Exert efforts to arrange training opportunities for workers to build their

skill which will make them more productive workers for the

organization and also cause to increase their remuneration

3- Exert efforts to arrange recreational facilities for workers Where these

facilities are available need improvement and where these are not

available are needed to be demanded by respective unions and arranged

by managementemployers in the form of Recreation allowances

Entertainment allowance Sports clubs Picnic parties etc

4- Unions should arrange training for office bearers from some agency to

have better know how of handling labor affairs and workersrsquo problems

5- When overall performance of unions is viewed unions claim the exertion

of efforts for every benefit (appendices F-1 to F-10 column 9) whereas

mean value of satisfaction level of workers is 34 So unions should

improve by exerting more efforts so that workers may be more satisfied

6- When overall performance of unions is viewed unions claim for exerting

efforts for benefits of employers (column 9 of tables in appendices F-1 to

F-10) whereas mean value of satisfaction level of employers is 365

211

Unions should improve by exerting more efforts so that satisfaction level

of employers may be very satisfied

7- Eighty six percent workers commented that intra organizational unions

are rivals to each other So unions should cooperate to each other if

unions are more than one in the organization Their rivalry harms them

and also to workers cause

8- Unions of today are weaker than unions a decade ago No doubt one

reason as workers told during interviews for this is non-democratic

regime but inter unions rivalry is also a reason for this so unions should

co-operate to each other in struggle for workers cause

9- Office bearers of four unions were not trained by any agency as unionists

to handle unionsrsquo matters Therefore Ministry of Labor amp man Power

should arrange training through any agency like (ILO NILAT) so that

they may be proved better unionist

10- There are Work Councils in only three organizations where as it is a legal

obligation according to section 24 of IRO 2002 Therefore unions should

demand and Government of Pakistan should arrange to form Work

Councils for prompt solution of workers problems

11- Unions sign charter of demand but intervals are different either 2 or

3years and of CDA union are not regular Unions and Employers should

sign charter of demand with regular intervals and this interval should be

two years

212

65 SUGGESTIONS FOR FURTHER RESEARCH

It is neither necessary nor easy that a research can determine causes of all the

problems or can explore all the aspects of a problem or can seek the solutions of a

problem for ever So any research can not be a final or comprehensive and there is

always need to explore better solutions of a problem or other facets of any discovery

Therefore researcher feels and admits that much work is to be done in presently

researched area In this regard for further researchers it is suggested to

1- Determine the causes of declining membership of labor unions in Pakistan

particularly in private sector after privatization

2- Determine the role of labor unions in politics of the country and in

movement of freedom of Pakistan

3- Explore the role of legislation and labor judiciary in providing relief to

labor unions or employers in the matter of conflicts

4- Enquire the social role of labor unions in solving social problems of

workers beyond collective bargaining

5- Estimate the role of labor unions in smaller industries or establishments in

solving the problems of workers by securing financial and non financial

benefits for workers

6- Search the affects of privatizations on the strength and activities of unions

in Pakistan

7- Explore the affects of globalization on the unionization unionsrsquo activities

and workers

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Fernie S and Metcalf D (1995) Participation Contingent Pay Representation and

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Freeman R B (2007) Do Workers Still Want Unions More Than Everrdquo EPI Briefing

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Ghayur S (1996-b) Trade Unions Democracy and Development in Pakistan Pakistan

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Gregg P S Stephen J M and David M (1993) Signals and Cycles Productivity

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Guisinger and Irfan M (1975) Inter-Industry Diferentials in Wages and Earnings in

pakistanrsquos Manufacturing Sector The Pakistan Development Review Autumn

1975

220

Hirsch B T (1997) Unionization and Economic Performance Evidence on

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Hirsch B T (2003) Reconsidering Union Wage Effects Surveying New Evidence on

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ftprepecizaorgRePEcDiscussionpaperdp795pdf

Hirsch B T and Schumacher E J (2000) Private Sector Union Density and the

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httpwwwecuedueconwp00ecu0015pdf

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Horowitz C F (1999) Union Corruption Why it Happens How to Combat it

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Retrieved February 19 2006 from httpwwwhrworgreports98asialbr

221

Hyman R (1999) An Emerging Agenda for Trade Unionsrdquo International Institute for

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ILO (2005) The role of trade unions in the global economy and the fight against

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ilo2005105B09_267_englpdf

Inoue S (1999) Japanese trade unions and their future Opportunities and challenges

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222

Kang Changhui (2003) ldquoUnion Wage Effect New Evidence from Matched Employee

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Katz Harry C Kuruvilla Sarosh and Turner Lowell (1993) Trade Unions and

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htm

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happyschoolorkrsub_01paper_downloadDo20Unions20Inhibit~PDF

223

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Mills D Q (1994) Labor Management Relationsrdquo 5th Edition McGraw-Hill Inc

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224

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htm

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227

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Yates M D (2001) The ldquoNewrdquo Economy and the Labor Movementrdquo Monthly

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Zutavern J (2005) Whats left for unions to trade Sources of labour union influence

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wwwcevipofmsh-parisfrrencontres colloq palier cleggYR_papers

zutavern pdf

229

APPINDICES

Appendix A-1

Workers by Designation of ARL

Designation Number Of Workers Interviewed

Supervisor 1

Driver 4

Photographer 1

Personal Assistant 1

Petrol Pump Operator 2

Sign Board Writer 1

Senior Fitter 3

Senior Gas Fitter 2

Fitter 4

Pump Operator 4

Plant Operator 7

Total 30

230

Appendix A-2

Workers by Designation of CDA

Designation No of Workers Interviewed

Helper 10

Firemen 10

Cook 2

Work Supervisor 1

Beldar 8

Mali (Gardner) 3

Guage Reader 1

Frash (Sweepers) 5

Security Guard 5

Mate 4

Electrician 2

UpperLower Div Clerk 8

Assistant 2

Forest Guard 4

Driver 2

Telephone Operator 1

Sub Engineer 1

Draftsman 1

Total 70

231

Appendix A-3

Workers by Designation of IESCO

Designation No of Workers

Interviewed

Assistant Sub Station Attendant 8

Security Guard 2

Assistant Line Man amp Line Man 19

Computer Operator 2

Meter Reader 4

Driver 2

Line Superintendent 4

Assistant Foreman 2

Sub Station Operator 8

Guard 2

Commercial Assistant 4

Upper Division Clerk 2

Naib Qasid 8

Draftsman 1

Safety Inspector 2

Total 70

232

Appendix A-4

Workers by Designation KTM

Designation No of Workers

Interviewed

Assistant Operator 2

Checker 2

Assistant Fitter 2

4-C- Sider 2

Pifcer 2

8-C-Sider 4

Electritian 2

Power House Operator 1

Ring Operator 10

Plant Operator 2

Helper 6

Total 35

233

Appendix A-5

Workers by Designation of OGDCL

Designation No of Workers Interviewed

Helper 15

Driver 4

Lower Division Clerk 4

Lift Operator 2

Engine Driver 4

Auto Electrician 1

Dispatcher 4

Supervisor 2

Store Assistant 2

Admin Assistant 4

Procurement Assistant 4

Naib Qasid 4

Total 50

234

Appendix A-6

Workers by Designation of PCP

Designation No of Workers Interviewed

Assistant 2

Store Keeper 2

Computer Operator 6

Proof Reader 3

Copy Holder 4

Steno Grapher 2

Typist 4

Machine Man 7

Lower Division Clerk 5

Upper Division Clerk 5

Security Guard 4

Naib Qasid 6

Total 50

235

Appendix A-7

Workers by Designation PTCL

Designation No of Workers Interviewed

Technician 14

Accounts Clerk 8

UDCLDC 8

Wireman 2

Lineman 15

Key Punch Operator (KPO) 8

Assistant 3

Naib Qasid 6

Walk Messenger 2

Plumber 2

Teleprinter Printer 2

Total 70

236

Appendix A-8

Workers by Designation PTV

Designation No of Workers Interviewed

Store Assistant 4

Driver 4

Electrician 5

Admin Assistant 4

Accounts Assistant 4

Producer 3

Publishing Machine Operator 2

Typist 4

Dispatch Rider 4

Stenographer 2

Camera Man 4

Sanitary Worker 4

Naib Qasid 6

Total 50

237

Appendix A-9

Workers by Designation of SNGPL

Designation No of Workers Interviewed

Associate Engineer 2

Supervisor Admin Cash Billing Revision

Sales Fittier

12

Typist 3

Record Keeper 3

Drivers 4

Meter Mechanic 4

Fitter 4

UDC LDC 4

Meter Readers 6

Helpers 6

Tracers 2

Total 50

238

Appendix A-10

Workers by Designation of ZTBL

Designation No of Workers Interviewed

Naib Qasid 14

Assistant 18

Cashier 4

Typist 6

StenographersSecretary 6

TelephoneOperator 2

Total 50

239

Appendix A-11

Representatives of Unions and Employers Interviewed

Organization Employersrsquo

Representative

Unionsrsquo

Representative

ARL Manager Human Resource General Secretary

CDA Deputy Director

Administration amp Labor

President

IESCO Manager Human Resource General Secretary

KTM Manager Human Resource General Secretary

OGDCL Manager Human Resource General Secretary

PCP Manager Human Resource President

PTCL General Manager Human

Resource

General Secretary

PTV Controller Administration

amp personnel

President

SNGPL Manager Human Resource General Secretary

ZTBL SVP amp Head H R amp

Operations Division

General Secretary

240

Appendix - B-1

Workers by EstablishmentPlace of Posting Interviewed ARL

Name Of Office Site Or Establishment Number Of Persons

Administrative Offices 4

Main Factory 20

Parking and petrol pump 6

Total 30

241

Appendix B-2

Workers by EstablishmentPlace of Posting Interviewed CDA

Name Of Office Site Or Establishment Number Of Persons

Environment Directorate 14

Sanitation Directorate 14

Administration Directorate 14

Enforcement Directorate 14

Revenue Directorate 14

Total 70

242

Appendix B-3

Workers by EstablishmentPlace of Posting Interviewed IESCO

Name Of Office Site Or Establishment Number Of Persons

Head Office Islamabad 6

Executive Engineer Office G-7 Islamabad 4

Executive Engineer Office Rawalpindi

Cantt

5

SDO Office Islamabad 10

SDO Office Rawalpindi Cantt 10

Grid Station Chishtia Abad Rawalpindi 5

Grid Station Zero Point Islamabad 5

Grid Station I-9 Islamabad 5

Grid Station H-11 Islamabad 5

Customer Service Centre Islamabad 5

Complaint Office Islamabad 5

Executive Engineer Office I-9 Islamabad 5

Total 70

243

Appendix - B-4

Workers by EstablishmentPlace of Posting Interviewed KTM

Establishment Place Number of Workers

Main Factory 32

Power House 3

Total 35

244

Appendix B-5

Workers by EstablishmentPlace of Posting Interviewed OGDCL

Name of Office Site or Establishment Number of Persons

Procurement Deptt 4

Administration Deptt 4

Engineering Deptt 4

Survey Deptt 4

Marketing Deptt 4

Stores ndashI9 Deptt 3

Training (OGTI) 1

Jand Oil Field 4

Loti Oil Field 4

Rahim Yar Khan Oil Field 4

Chaknaurang Oil Field 4

Lkot Satang Oil Field 4

Einkasar Oilfield 4

Service Station 2

Total 50

245

Appendix B-6

Workers by EstablishmentPlace of Posting Interviewed PCP

Name of Office Site or Establishment Number of Persons

Head Quarter PCP Islamabad 21

PCP Press Islamabad 29

Total 50

246

Appendix B-7

Workers by EstablishmentPlace of Posting Interviewed PTCL

Name of Office Site or Establishment Number of Persons

PTCL Head Quarter G-8 Islamabad 10

DE Office F-8 Islamabad 7

DE Office Westridge Rawalpindi 7

DE Office Cantt Rawalpindi 7

Telephone Exchange Westridge Rawalpindi 6

Telephone Exchange Cantt Rawalpindi 7

DE Office Satellite Town Rawalpindi 2

Revenue Office Rawalpindi 7

Civil Maintenance Office Rawalpindi 2

Customer Services Centre Rawalpindi 2

Customer Services Centre G-9 Islamabad 2

Customer Services Centre Zero Point Islamabad 5

Telephone Exchange F-8 Islamabad 6

Total 70

247

Appendix B-8

Workers by EstablishmentPlace of Posting Interviewed PTV

Name of Office Site or Establishment Number of Persons

Head Quarter Administration Offices 11

Ptv Head Qurter Telecasting 30

Ptv-1 Etv 9

Total 50

248

Appendix B-9

Workers by EstablishmentPlace of Posting Interviewed SNGPL

Name of Office Site or Establishment Number of Persons

Construction Department 7

Connection Department 7

Meter Reading Department 7

Billing Department 8

Sales Department 7

Recovery Department 7

Administration Department 7

Total 50

249

Appendix B-10

Workers by EstablishmentPlace of Posting Interviewed ZTBL

Name of Office Site or Establishment Number of Persons

Credit Division 6

Law Division 6

Recovery Division 6

General Services Division 6

Human Resource Division 6

Audit Division 6

Zonal Office 4

Zero Point Branch 4

G- 7 Branch 4

Sensa Branch 2

Total 50

250

Appendix C-1

Financial Benefits of Workers (by Unionsrsquo Efforts)

W-rise Percentage Number of

Bonuses

Other Allowances

Org

Name

Previous

Charter

Present

Charter

Previous

Charter

Present

Charter

ARL 22 18 5 41 5 of profit also paid to workers

CDA 20 20 2 22 Talwar All Dress All Washing All

IESCO 15 15 - - Hardship All and free electricity2

KTM - - 4 13 -5 of profit paid to workers

-Employer contributes Equivalent to

5 of salary to Employees Old Age

Benefit Institute

- Employer contributes Equivalent to

5 of salary to Social Security

OGDCL 191

20 2 24 Field Allowance for field staff amp 5

of profit to workers

PCP 15 15 - - Tea Allowance Capital Allowance

Night Allowance

PTCL - 35 1 15

PTV 25 25 1 1 Technical Allowance Heavy Duty

Allowance etc

SNGPL 15 15 2 2 Recreation All Half basic

ZTBL 15 15 2 2 Interest free loans

251

1- 4 four bonuses are compulsorily paid but more than are depending on profit

2- Tow bonuses are paid every year on Eid occasion and every bonus is of Rs

2000 only

3- In KTM profit decreased because of crisis in textile sector so bonus reduced to

one

4- Two bonuses are compulsory and if there is discovery in the year then

discovery bonus is also paid and called Discovery Award

5- In PTCL one Bonus is paid every year In 2005 bonus amount was Rs 16000

but in 2006 it reduced to Rs 9000 only and union filed a suit in NIRC for this

reduction

252

Appendix C-2

Non Financial Facilities of Workers (by Union Efforts)

OrganizAtion

Name

J-sec Hours

week

Annual Leaves Others

ARL Yes 40 40 Cheapest canteen

Medical Treatment

CDA Yes 39 68 Plots

Medical Treatment

IESCO Yes 375 73 Free Electricity

Medical Treatment

KTM Yes 48 40 Free House Free Gas

Free Electricity

Medical Treatment

OGDCL Yes 385 68 Recreation Clubs

Medical Treatment

PCP Yes 40 68 Medical Treatment

PTCL Yes 41 68 Call of 200 units free

Medical Treatment

PTV Yes 365 68 Medical Treatment

SNGPL Yes 39 68 Medical Treatment

ZTBL Yes 39 68 Medical Treatment

253

Appendix C-3

Monthly Wages of Workers (on December 31 2006)

Name of Org

Less Than Rs

4000-

Rs4000- to Rs 5000-

5000- To

10000

10001 to

15000-

15001 to

20000-

20001 to

25000

Above Rs

25000-

Total

ARL - - - 25 3 2 - 30

CDA - 6 52 12 - - - 70

IESCO - 2 36 28 4 - - 70

KTM - 20 13 2 - - - 35

OGDC - - 15 14 5 14 2 50

PCP - 2 36 12 - - - 50

PTCL - - 8 32 28 2 - 70

PTV - - 5 7 15 5 18 50

SNGPL - - - 19 18 9 4 50

ZTBL - - 8 20 16 4 2 50

Total - 30 173 171 89 36 26 525

Percentag

e

0 571 3296 3257 1695 686 495 100

Up to Rs 10000- 3867

From 10000 to 20000- 4952

Above Rs 20000 1181

254

Appendix D-1

Nature of Sampled Organizations

S

No

Name of

Organization

Organization

ActivityBusiness

Nature

Legal Status

Owned Controled

by

1 Attock Refinery Ltd

(ARL)

Oil Refining Public Limited Private

2 Capital Development

Authority (CDA)

Town Planning

City Municipal

Services

Government

Autonomous Body

Government of

Pakistan

3 Islamabad Electric

Supply Company

(IESCO)

Electric Power

Supply

Government

Autonomous Body

Government of

Pakistan

4 Koh-i-Noor Textile

Mills Ltd

Textile

Manufacturing

Public Limited Private

5 Oil amp Gas

Development

Corporation Ltd

(OGDCL)

Oil amp Gas

Exploration and

extraction

Semi Government

Autonomous Body

Government of

Pakistan

6 Printing Corporation

of Pakistan (PCP)

Printing and

Publication

Government

Autonomous Body

Government of

Pakistan

7 Pakistan

Telecommunication

Corporation Ltd

(PTCL)

Telephone Services Public Limited Private

8 Pakistan Television

Corporation

Telecasting

Information

Government

Autonomous Body

Government of

Pakistan

9 Sui Northern Gas Pipe

Line Ltd (SNGPL)

Natural Gas Supply Semi Government

Autonomous Body

Government of

Pakistan

10 Zari Tarraqiati Bank

Ltd (ZTBL)

Banking Government

Autonomous Body

Government of

Pakistan

255

Appendix D-2

Sampling Detail

S No

Name of

Organization

Total

Unions

Total

Permanent

Workers

Permanent

Workers

Sampled

Total

Temporary

Workers

Temporary

Workers

Sampled

1 (ARL) 1 438

30 157 10

2 (CDA) 3 14000

70 1300 10

3 (IESCO) 2 12700

70 854 10

4 (KTM) 2 1940

35 1655 10

5 (OGDCL) 2 9338

50 752 10

6 (PCP) 1 545

50 - -

7 (PTCL) 4 59700

70 2430 10

8 (PTV) 2 870

50 365 10

9 (SNGPL) 2 7600

50 610 10

10 (ZTBL) 1 2520

50 325 10

Total 20 109661

525 8448 90

256

Appendix E-1

Abbreviations for Words Used in Analysis Tables

Abbreviation Explanation

FREQ or Freq Frequency

IND Indifferent

ORG Organization

RES Respondents

S Satisfied

US Un-satisfied

UN Union

VAR Variables

VS Very Satisfied

VUS Very Un-satisfied

WT or Wt Weight or weighted

Y YES

N NO

Σ Sum Total

257

Appendix E- 2

List and Codes of Variables Used

Name of Variable Code of

Variable

Type of

Variable

Variable

Pertaining to

Success of Union Su Dependent Union

Satisfaction of Workers Sw Mediating Workers

EmployersManagement Satisfaction Se Mediating Employers

Management

Wag-Rise Wris Independent Workers

Financial Benefits (bonus) Fbft Independent Workers

WorkerOfficer Wage Salary Difference

Reduction

Wdf Independent Workers

Job Security Jsec Independent Workers

Time Reduction Td Independent Workers

Leaves Increase Linc Independent Workers

Over Time Ot Independent Workers

Working Conditions Wcon Independent Workers

Health Facility Hfac Independent Workers

Children Education Ced Independent Workers

Post retirement Benefits Pension Prb Independent Workers

Recreation Rfac Independent Workers

Training opportunities Top Independent Workers

Workers Education We Independent Workers

Workersrsquo Productivity Efficiency

performance improvement

Pin Independent Management

Work Place Harmony Wph Independent Management

Informing workers about Rights Ir Independent Workers

and mediating variables because act as independent as unionrsquos success depends

on them but they are further dependent on independent variables comprising

workersrsquo and employersrsquo responses respectively

258

Appendix ndash F-1

Responses of Union Workers and Management of ARL

(Attock Refinery Limited)

Respon dents

Workers Union

Manage-ment

VAR

YES NO VS

S

IND

US

VUS

UN RES

MGT RES

WT

Wris 30 - 2 20 8 - - Y Y -

Fbft 28 2 8 16 4 2 - Y Y -

Jsec 30 - 8 18 4 - - Y Y -

Td 4 26 16 14 - - Y Y -

Linc 26 4 24 6 - - Y Y -

Ot 26 4 20 10 - - Y Y -

Wcon 30 4 22 4 - - Y Y -

Hfac 30 - 20 6 4 Y Y -

Ced 22 8 2 14 10 4 Y Y -

Prb 8 22 - 2 14 14 Y Y -

Rfac 12 18 2 10 8 10 Y Y -

Top 10 20 18 8 4 Y Y -

We 16 14 12 14 4 Y Y -

Wdf 18 12 6 8 12 4 Y Y -

Ir 24 6 16 12 2 Y - -

Pin 26 4 Y IND 3

Wph 28 2 Y S 4

259

Appendix ndash F-2

Responses of Union Workers and Management of CDA

(Capital Development Authority)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGE RES

WT

Wris 44 26 40 14 16 Y Y -

Fbft 70 62 6 2 Y Y -

Jsec 54 16 48 18 4 Y Y -

Td 23 47 36 32 2 - Y N -

Linc 23 47 35 33 2 Y N -

Ot 36 34 30 32 8 Y Y -

Wcon 46 24 30 28 12 Y Y -

Hfac 44 26 40 14 16 Y Y -

Ced 18 52 13 48 09 Y Y -

Prb 64 6 14 50 6 0 Y Y -

Rfac 4 66 58 12 Y N -

Top 12 58 10 20 40 Y Y -

We 44 26 28 34 8 Y N -

Wdf 28 42 28 28 14 Y Y -

Ir 56 14 54 10 6 Y - -

Pin 36 34 Y IND 3

Wph 55 15 Y S 4

260

Appendix ndash F-3

Responses of Union Workers and Management of IESCO (Islamabad Electric Supply Company)

RESPON DENTS

WORKERS UNION MANAGE-MENT

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 53 17 - 26 22 22 - Y Y -

Fbft 8 62 2 12 56 - Y N -

Jsec 59 11 7 40 13 10 - Y Y -

Td 52 18 - 40 23 7 - Y Y -

Linc 50 20 - 40 25 5 - Y N -

Ot 54 16 36 20 14 - Y Y

Wcon 56 14 50 10 10 - Y Y -

Hfac 52 18 26 24 20 - Y Y -

Ced 29 41 9 44 17 - Y Y -

Prb 16 54 4 46 20 - Y Y -

Rfac 17 53 47 23 - Y Y -

Top 27 43 22 34 14 - Y Y

We 43 27 - 36 24 10 - Y N -

Wdf 18 52 - 2 37 31 - Y N -

Ir 54 16 - 49 10 11 - Y - -

Pin 50 20 - Y S 4

Wph 57 13 - Y FS 5

261

Appendix ndash F-4

Responses of Union Workers and Management of KTM (Koh-i-Noor Textile Mills Limited)

Respondents

Workers Union Manage-ment

VAR YES NO VS S IND US

VUS

UN RES

MGT RES

WT

Wris 10 25 - 10 4 21 Y N -

Fbft 27 8 - 17 17 1 Y Y -

Jsec 20 15 - 15 10 10 Y Y -

Td - 35 - 13 13 9 Y N -

Linc - 35 - 10 16 9 Y N -

Ot 16 19 - 12 15 8 Y N -

Wcon 30 5 - 30 5 - Y Y -

Hfac 31 4 6 25 4 - Y Y -

Ced 35 4 20 11 - Y Y -

Prb 22 13 - 17 10 8 Y - -

Rfac 19 16 - 16 10 9 Y N -

Top 35 22 13 Y N -

We 17 18 12 17 6 Y Y -

Wdf 2 33 2 7 26 Y N -

Ir 25 10 20 12 3 Y -- -

Pin 19 16 Y S 4

Wph 29 6 Y S 4

262

Appendix ndash F-5

Responses of Union Workers and Managementof OGDC (Oil and Gas Development Company Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 35 15 - - Y Y -

Fbft 46 4 2 34 10 4 - Y Y -

Jsec 50 - - 45 5 - - Y Y -

Td 50 - - 40 10 - - Y Y -

Linc 45 5 - 40 10 - - Y Y -

Ot 28 22 - 22 16 12 - Y Y -

Wcon 43 7 4 33 10 3 - Y Y -

Hfac 50 - 17 28 5 - - Y Y -

Ced 22 28 - 8 36 06 - Y Y -

Prb 29 21 - 27 13 10 - Y Y- -

Rfac 37 13 18 14 14 4 - Y Y -

Top 27 23 4 19 20 7 - Y Y -

We 30 20 - 21 19 10 - Y N -

Wdf 34 16 5 26 14 5 - Y Y -

Ir 46 4 - 34 12 4 - Y - -

Pin 39 11 - Y IND 3

Wph 45 5 - Y S 4

263

Appendix ndash F-6

Responses of Union Workers and Management of PCP (Printing Corporation of Pakistan)

Respon

dents

Workers Union Manage-

ment

VAR YES NO VS S IND US V

US

UN

RES

Mgt

Res

Valu

e

Wris 44 6 37 4 9 Y Y -

Fbft 44 6 33 8 9 Y Y -

Jsec 47 3 4 40 4 2 Y Y -

Td 50 40 4 6 Y Y -

Linc 50 38 7 5 Y Y -

Ot 45 5 37 9 4 Y Y -

Wcon 41 9 39 6 5 Y Y -

Hfac 42 8 40 5 5 Y Y -

Ced 11 39 11 16 23 Y N -

Prb 33 17 5 30 15 Y Y -

Rfac - 50 30 20 Y N -

Top - 50 24 26 Y N -

We 26 24 30 20 Y N -

Wdf 5 45 5 37 8 Y N -

Ir 38 12 20 21 9 Y - -

Pin 41 9 Y IND 3

Wph 44 6 Y S 4

264

Appendix ndash F-7

Responses of Union Workers and Management of PTCL

(Pakistan Telecommunication Corporation Limited)

Respon dents

Workers Union Manage-ments

VAR YES NO

VS S IND US VUS

UN RES

MGT RES

WT

Wris 56 14 28 18 24 - Y Y -

Fbft 42 28 14 16 40 Y Y -

Jsec 50 20 2 39 15 14 - Y Y -

Td 42 28 40 20 10 - Y Y -

Linc 40 30 36 24 10 - Y Y -

Ot 18 52 10 38 22 - Y Y -

Wcon 51 19 36 24 10 - Y Y -

Hfac 50 20 44 16 10 - Y Y -

Ced 34 36 11 32 27 - Y N -

Prb 24 46 4 44 22 - Y N -

Rfac 70 40 30 - Y N -

Top 26 44 16 40 14 - Y Y -

We 22 48 19 39 12 - Y N -

Wdf 14 56 32 38 - Y Y -

Ir 36 34 18 34 18 Y - -

Pin 34 36 - Y IND 3

Wph 40 30 - Y IND 3

265

Appendix ndash F-8

Responses of Union Workers and Management of PTV (Pakistan Television Corporation)

Respon dents

Workers Union Manage-ments

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 45 5 6 26 14 4 Y Y -

Fbft 40 10 - 36 12 2 Y Y -

Jsec 48 2 7 39 3 1 Y Y -

Td 42 8 37 10 3 Y Y -

Linc 40 10 38 9 3 Y Y -

Ot 43 7 41 6 3 Y Y -

Wcon 44 6 39 11 Y Y -

Hfac 39 11 37 5 8 Y Y -

Ced 32 18 13 20 17 Y Y -

Prb 37 13 21 24 5 Y Y -

Rfac 12 38 10 34 6 Y N -

Top 16 34 16 24 10 Y Y -

We 39 11 33 8 9 Y Y -

Wdf 32 18 23 14 13 Y Y -

Ir 99 11 - 30 10 10 Y -

Pin 43 7 Y IND 3

Wph 47 3 Y YS 4

266

Appendix ndash F-9

Responses of Union Workers and Management of SNGPL (Sui Northern Gas Pipe Line Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS S IND US VUS UN RES

MGT RES

WT

Wris 47 3 7 30 10 3 Y Y -

Fbft 47 3 5 30 12 3 Y Y -

Jsec 48 2 5 34 11 Y Y -

Td 44 6 34 16 Y N -

Linc 40 10 32 18 Y N -

Ot 44 6 3 21 23 3 Y Y -

Wcon 45 5 3 40 4 3 Y Y -

Hfac 39 11 4 34 10 2 Y Y -

Ced 11 39 6 22 22 Y Y -

Prb 46 4 37 8 5 Y Y -

Rfac 47 23 16 30 2 2 Y Y -

Top 15 35 10 34 6 Y Y -

We 22 28 15 25 10 Y Y -

Wdf 32 18 - 17 28 5 Y Y -

Ir 37 13 25 14 11 Y - -

Pin 39 11 Y IND 3

Wph 47 3 Y S 4

267

Appendix ndash F-10

Responses of Union Workers and Management of ZTBL (Zarhi Tarraqiatti Bank Limited)

Respon dents

Workers Union Manage-ment

VAR YES NO VS

S IND US VUS UN RES

MGT RES

WT

Wris 50 - - 32 14 4 - Y Y -

Fbft 42 8 28 14 8 - Y Y -

Jsec 50 - 26 20 4 - - Y Y -

Td 50 28 16 6 - Y Y -

Linc 50 28 14 8 Y Y -

Ot 36 14 16 12 22 - Y Y -

Wcon 45 5 32 14 4 - - Y Y -

Hfac 40 10 1 38 4 7 - Y Y -

Ced 28 22 22 22 6 - Y Y -

Prb 12 38 2 18 30 - Y Y -

Rfac 8 42 28 22 - Y Y -

Top 30 20 26 20 4 - Y Y -

We 32 18 28 18 4 - Y Y -

Wdf 30 20 2 20 22 6 - Y Y -

Ir 42 8 4 34 7 5 - Y - -

Pin 31 19 - Y S 4

Wph 40 10 - Y S 4

268

Appendix ndash F-11

Essentiality of Unions Inter Unions Relations and Unions Status as Compared to Past

(Workers Responses)

Questions

QNo 18 Is Union Essential in yourganization

QNo 19 Are Inter Union Relations Good in Your Organization

QNo 20 Are Unions of Today Weaker Than Unions ofthe Past

Name of Number of Number of Responses

Number of Responses

Number of Responses

Org Respo ndents

Unions in Org

Yes No Yes No Yes No

ARL) 30 1 30 - - - 27 3

CDA 70 3 67 3 10 60 64 6

IESCO 70 2 66 4 10 60 70 -

KTM 35 2 32 3 3 32 33 2

OGDCL 50 2 50 - 5 45 45 5

PCP 50 1 48 2 - - 46 4

PTCL 70 4 61 9 2 68 69 1

PTV 50 2 50 - 16 34 26 24

SNGPL 50 2 50 - 10 40 41 9

ZTBL 50 1 50 - - - 6 44

Total 525 20 504 21 56 339 427 98

269

Appendix ndash F-12

(Questionnaire-1 Question 18amp 19) About Work Council and Unionistsrsquo Training

(Union Office Bearersrsquo Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does union sign Charter of Demand

Q- 20 Have you been imparted training as unionrsquos office bearer by any agency

ARL YES Yes-after every three years Once by ARL in NILAT

and Once by PWF

CDA YES Yes-(interval not regular) Yes Once by ILO amp once

by APFOL

IESCO YES Yes-after every three years Yes- by our union

KTM NO Yes-after every three years Never

GDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Yes by WTO

PTCL NO Yes-after every three years Yes ndash by ILO

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Yes by NILAT

270

Appendix ndash F-13

About Charter of Demand and Wage Cut

(Management Responses)

Name of Org

Q-18 Is there work council in your organization

Q-19 Does Union Sign Charter of Demand

Q- 20 Did Union Accept Wage cut any Time

ARL YES Yes-after every three years Never

CDA YES Yes-(interval not regular) Never

IESCO YES Yes-after every three years Never

KTM NO Yes-after every three years Never

OGDCL NO Yes-after every three years Never

PCP NO Yes-after every two years Never

PTCL NO Yes-after every three years Never

PTV NO Yes-after every three years Never

SNGPL NO Yes-after every two years Never

ZTBL NO Yes-after every two years Never

271

Appendix G-1

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR UNION OFFICE BEARERS-1

PERSONAL INFORMATION

Name of Company Institution ----------------------------Public Private

Name of office bearer----------------------------------------------------------

Designation---------------------

Nature of Duty------------------------------------------------------------------------------------

No of unions in organization--------------------Is Your Union ldquoCBArdquo---------- ------

Union registered with -----------Registrar------------NIRC------------

Name of your Union---------------------------------------Status in Union-----------------

Experience of union office in years-------------------Years of present status----------

UNION INFORMATION

1- Did Union exert efforts to Increase workers Wages ------ Yes-------- No------

If yes how much increased---------------------- In percentage---------------------------

Increase how many times-------------------After how long interval--------------------------

--

2- Did union exert efforts for Fringe Benefit of workers like Bonus Yes-- No----

272

If yes how much amount-------------------------- How many times a year-------------------

3 Did union exert efforts for workers Job Security ------ Yes-- No--

If yes then how----------------------------------------------------------------------------------

4- What are workersrsquo Duty Timings

Arrival time------------------------------Break--------------------- Leaving time --------------

Total Daily hours ------------ Weekly hours----------------- Weekly working days------

Did union exert efforts for reduction in workers duty hours------Yes-----No----------

If yes then how much time reduced--------per day----------------per week------------------

5- Did union exert efforts to increase workers Leaves--Yes No------

How---------------------------------------------------------------------------------------

6- Did union exert efforts for payment of Overtime for workers --- Yes No --

If yes then with these efforts are you

7 Did union exert efforts to improve Working Conditions and provide facilities

Yes------NO--------------

8- Did union exert efforts for Health care of workers ---- Yes No ---------

i- Arranged to establish Hospital-------------------------------------------------

ii- Arranged medical Allowance--------------------------------------------------

iii- Treatment Arrangements for family-------------------------------------------

iv- Treatment Arrangements for parents ----------------------------------------

v- Any other-------------------------------------------------------------------------

273

9- Did union exert efforts for Education of workersrsquo Children Yes--- No ---

i- Established School------------------------------------

ii- Arranged Scholarship--------------------------------

iii- Arranged Transport of School------------------------

iv- Provides education Allowance-----------------------

v- Any other Arrangement------------------------------

10- Did union exert efforts for Post Retirement Benefits of Workers Yes No----

i- Arranged pension facility-------------------------------

ii- Increase of pension amount-----------------------

iii- Any other----------------------------------------

If yes then with these efforts are you

11- Did union struggle to arrange Recreational Facilities for workers Yes No --

How Details -----------------------------------------------------------------------

With this are you

12- Did union struggle to arrange any Training for workers --- Yes No ----

If yes then how --------------------------------------------------------------------

13 Did union try to decrease workers officers Wagesalary differenceYes-- No--

14- Did union inform the workers about their Rights as worker --- Yes---- No --

If yes then how

15 Did union struggle to arrange Education Facility for workers --- Yes---- No --

----------------------------------------------------------------------------------------------------------

274

16- Did union exert efforts to Increase workers Productivity Performance

Yes-----No----------

17- Did union exert efforts to Increase workplace Peace Harmony --- YesNo

How-------------------------------------------------------------------------------------

18 Is there Work Council in the Organization to solve problems with negotiation

Yes-----No----------

How-------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20- Have you been imparted training as office bearers to conduct unionrsquos matters by

Any agency------------Yes------- No------Tell details---------------------------------

Was this training arranged by union------Yes No

275

Appendix G-2

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR WORKERS-2

Personal Data

Name of Company Institution ------------------------------------ Public ----Private----

Designation----------------- Service Length------- Age----------Education----------

Experience in present institution-------------------Total Experience---------------

Nature of Duty------------------------------------------------

Number of Unions in Institution-------- Are You Union member ----------

Since how many years ----------

Name of your Union------------------------------ Is Your Union ldquoCBArdquo ----------

Your Present Wage------------------------------------------------------------------------------

Basic Pay---------------------Allowances---------------------Total------------------------------

Union Data

1- Is There any Increase in Your Wage Due to Union ------ Yes--- No----

If Yes How Much----------------------------- In Percentage----------------------------

Increase How Many Times-------------------After How Long Interval---------------

With this Increase are you

276

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied-

2- Did Union Exert Efforts for any Fringe Benefit Like Bonus For Workers

Yes----No----

If Yes Amount------------------- -----------------How Many Times a Year------------

With these efforts are you

Fully Satisfied Satisfied Indifferent Unsatisfied Fully Unsatisfied

3- Did Your Union Exert Efforts for Workers Job Security -----Yes ---No------

If yes then with these efforts are you

Fully Satisfied------Satisfied-------Indifferent-------Unsatisfied-------Fully Unsatisfied-----

4- What are Your Duty Timingshours

Arrival Time---------------------------Break------------------------ Leaving Time --------------------

Daily Hours --- --------- -----Weekly Hours -------------- Weekly Working Days-----------

Did Union Exert Efforts for Reduction in Working Hours----------Yes---------No--------

If Yes Then How Much Time Reduced---------Per Day-------------------Per Week-----------

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

5- Did Union Exert Efforts To Increase Workersrsquo Leaves

Yes ------No-----

If Yes then how many leaves Increased--------------------------------------------

With these efforts are you

277

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

6- Did union exert efforts for payment of overtime for worker Yes ------No-----

If yes then how-------------------------------------------------------------------------------

With these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

7 Did Union Exert Efforts To Improve Working Conditions --Yes ------No-----

With these efforts what is you over all satisfaction level

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied-----

8 Did Union Exert Efforts For Health of Workers ---------Yes ----No-----

vi- Arranged to Establish a Hospital-------------------------------------------------

vii- Arranged Medical Allowance------------------------------------------------------

viii- How Much is Medical Allowance-------------------------------------------------

ix- Treatment Arrangements for Family---------------------------------------------

x- Treatment Arrangements for Parents -------------------------------------------

With These Efforts Are You

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

9- Did Union Exert Efforts for Education of Workers Children YesNo-----

vi- Established School---------------------------------------------- Yes ----No-----

vii- Arranged Scholarship------------------------------------------- Yes ----No----

278

viii- Arranged Transport Of School-------------------------------- Yes ----No-----

ix- Provides Education Allowance-------------------------------- Yes ----No-----

x- School Bus Arrangement--------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

10- Did Union Exert Efforts for Post Retirement Benefits of Workers ----YesNo

iv- Arranged Pension Facility------------------------------------- Yes ----No----

v- Increase of Pension Amount---------------------------------- Yes ----No----

vi- Any Other-------------------------------------------------------- Yes ----No----

With these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

11- Did Your Union Arrange Any Recreational Facilities -----Yes -----No------

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

12- Did You Ever Receive Any Training ---- ------------------------- Yes No ------

What sort of training ---------------------------------------------------------------------

Was This Training Because of Efforts of Union-------------------------------------

If Yes Then How --------------------------------------------------------------------------

Are you satisfied with this

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied--

13- Did Union Try to Decrease Wage Salary Difference of Officers and Workers

YesmdashNo--

If yes then with these efforts are you

279

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied-------Fully Unsatisfied---

14- Did Your Union Inform You about Your Rights As Worker Yes ----No--

If Yes Then How --------------------------------------------------------------------------

15- Did Your Union Arrange Any Education Facilitiesfor you ---Yes -----No-----

If yes then with these efforts are you

Fully Satisfied------Satisfied--------Indifferent--------Unsatisfied--------Fully Unsatisfied

16 Did Union Exert Efforts to Increase Workers ProductivityEfficiency

Yes -----No-----

If yes then with these efforts are you

17- Did Union Exert Efforts to Increase Workplace Peace Harmony Yes---No----

18 Is union necessary for workers in the organization Yes--------No-------

19 Do unions remain in mutual conflict if more than one Yes--------No-------

20 Are unions weak with compared to past Yes--------No-------

280

Appendix G-3

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3

Name of Company Institution ------------------------------------ Public Private

Name of Official (optional) -----------------------------------------------------------------

Designation---------------------------Service Length ----------------------------------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

UNION INFORMATIOM

No of Unions in Institutionhelliphellip Do you deal with registered Union unions--------

1 Is there any workersrsquo Wage Increase due to Unionrsquos efforts Yes-------No----

If yes how much------------------------------- In percentage----------------------

Increased how many times-------------------------After how long interval------------

2- Did union exert efforts for any Frinde benefit of workers like bonus Yes--

-----No-------

If yes how much amount---------------------- How many times a year------------

3- Did union demand for workers Job security -------Yes-----------No---------

281

4- What are workers duty timings

Arrival time----------------------------------Break--------------------- Leaving time ----

Total hours --------- Daily -----------Weekly---------Weekly working days--------

Did union demand for reduction in workers job hours---------------------------

If yes then how much time reduced------per day-----------------per week-------------

5- Did union demands to increase workersrsquo Leave ---- Yes------- No-------

6- Did union exert efforts for payment of overtime for workers ndashYes ----No ---

7- Did union demand to improve working conditions ---Yes---- No-------

8- For health of workers did union demand Yes---- No-------

xi- Arranged to establish a hospital--------------------------------------------

xii- Arranged medical Allowance of Amount--------------------------------

xiii- Treatment arrangements for family-------------------------------------

xiv- Treatment arrangements for parents ---------------------------------------

xv- Any other--------------------------------------------------------------------------

9- For Education of Workers Children did union demand to ----------------

xi- Establish School -----------------------------------------------------------------

xii- Arrange scholarship---------------------------------------------------------------

xiii- Arrange transport for school----------------------------------------------------

xiv- Provide Education Allowance---------------------------------------------------

xv- Any other Arrangement--------------------------------------------------------

Yes---- No-------

10- Did union demand for Post Retirement Benefits of Workers----------------

vii- Arranged pension facility---------------------------------------------------------

282

viii- Increase of pension amount--------------------------------------------------------

ix- Any other-----------------------------------------------------------------------------

Yes---- No-------

11- Did union demand to arrange any recreational facilities for workers---------

Yes---- No-------

12 Did union demand for any training of workers ------------------------------

Any Comment

13- Did union try to decrease Wagesalary difference of officers and workers----

Yes -----No -----

14- 15- Did union inform the workers about Rights as worker Yes-------No-------

15- Did union Demand for workers Education Facility Yes-------No--------

-----------------------------------------------------------------------------------------------------

16- Did union exert efforts to increase workers productivityefficiency

Yes-------No--------

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

Any Comment-

17- Did union exert efforts to improve workplace Peace Harmony

Yes-------No--------

How-------------------------------------------------------------------------------------

283

If yes then with these efforts are you

Fully satisfied------satisfied--------indifferent--------unsatisfied--------fully unsatisfied

18 Is there work council in the organization Yes-------No----

----------------------------------------------------------------------------------------------------------

19 - Does union sign charter of demand Yes-------No--------

After how many years--------- When last was singed-----------------

20 Did Union CBA accept any time wage cut for Firm benefit Yes -----No-----

Any comment

------------------------------------------------------------------------------------------------------------

284

Appendix G-4

DATA COLLECTION FOR ROLE OF LABOR UNIONS

QUESTIONNAIRE FOR TEMPORARY WORKERS-4

Name of Company Institution ------------------------------------ Public Private

Designation---------------------------Service Length -------Age-----------Education--------

Experience in present institution------------------------Total Service Experience-------

Nature of Duty------------------------------------

Question- 1 Does your Wage Increase regularly YES---No--

If increase how much -----------in percentage ---------------

Question- 2 Do you have Job Security YES----No--

Question- 3 What are your Daily Working Hours -----------

Question- 4 Are your Working Conditions ndashwell ----- YES----No--

Question- 5 Do you avail Children Education facility YES----No--

Question- 6 Do you avail HealthTreatment facility YES----No--

Question- 7 Do you have Financial Benefit like bonus YES----No--

Question- 8 Do you have Miscellaneous Benefit (petty Allowance)

YES----No--

Question- 9 How many Yearly leaves Do you have ---------------

Question- 10 Is there any contribution of union in providing these

facilities to you YES----No--

285

Appendix H-1

GLOSSARY

DEFINITIONS OF TERMS OF RESEARCH TITLE

Terms used in research title are defined below

HUMAN RESOURCE DEVELOPMENT (HRD)

Rao (1995 p 26) extracted from UNDP following definition

ldquoHRD implies many facets of development of people including their physical

intellectual emotional political spiritual and all other forms of developmentrdquo

INDUSTRIAL RELATIONS

ldquoThe field of industrial relations looks at the relationship between management

and workers particularly groups of workers represented by a union Governments set

the framework for labor relations through legislation and regulationrdquo (Wikipedia-a)

LABOR UNIONS

According to lsquoWorld Labor Report 1997-1998rsquo of ILO The Australian Bureau of

Statistics has defined unions as

ldquoAn organization consisting predominantly of employees the principle activities of

which include the negotiation of pay and conditions of employment for its membersrdquo

httpwwwiloorgpublicenglishdialogueifpdialpublwlr97annexnoteshtm

ORGANIZATIONAL CLIMATE

Burton et al (2004) defined Organizational climate as

ldquoOrganizational climate is the attitude of the individuals concerning the

organizationmdashits degree of trust conflict morale rewards equity leader credibility

resistance to change and scapegoating as seen by the individualsrdquo

286

For this research it means with in the organization and not beyond organization on

social or political forums not being a subsidiary of any political party

PAKISTANrsquoS PERSPECTIVE

In Pakistanrsquos industrial relations system all the permanent workers may be member of

any CBA union or other unions or non members but permanent employees of the

organization are equally benefited from collective bargaining Further more in Pakistan there

is its own Perspective for Collective Bargaining Shafiq-ur-Rehman (2003) expressed that

collective bargaining in Pakistan instead of the issue of wage rise typically covers a much

wider range of issues including pecuniary terms of employment (such as non statutory

allowances and benefits) and non pecuniary conditions of employment including job security

and working conditions (such as safety of work place and methods of production)

  • 01 Titledoc
  • 02 Front Matterdoc
    • TABLE OF CONTENTS
    • Page
    • 1 INTRODUCTION 1
      • 2 LITERATURE REVIEW 7
        • 221 Emergence of Labor Unions 12
          • 223 Why Workers Join Unions 17
          • 23 UNIONS ROLE FOR WORKERS BENEFITS 19
          • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39
          • 241 Productivity Efficiency and Profitability 39
          • 242 Work Place Harmony and Cooperative Role 46
            • 25 STRATEGIES AND TACTICS OF UNIONS 50
              • 251 Source of Strength of Unions 50
                • 2511 Unionsrsquo Density and Their Strength to Effect 50
                • 252 Peaceful Means of Achieving Objectives 51
                  • 26 CORRUPTION OF UNIONS 53
                  • 261 Corruption and Selfishness of Officials 53
                    • 264 Bribes (Extortion and Pay-off) 58
                      • 31 HISTORY OF LEGISLATION 61
                        • 311 Laws Permitting Establishment of Unions 62
                          • 312 Laws for Settlement of Disputes 64
                          • 322 ILO Conventions 67
                            • 4 RESEARCH METHODOLOGY 84
                            • 42 POPULATION AND SAMPLING 91
                            • 321 Stage-lsquoIrsquo Sampling of Organizations 91
                              • 422 Stage-lsquoIIrsquo Sampling of Respondents 92
                              • 4221 Sampling of Union Office Bearers 92
                              • 4222 Sampling of Permanent (Unionized) workers 93
                              • 4223 Sampling of Management 93
                                • 43 DATA COLLECTION INSTRUMENTS 93
                                  • 431 Questionnaires and Their Structure 93
                                    • 44 PREPARATION OF SATISFACTION LEVEL SCALE 97
                                      • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103
                                        • BENEFITS
                                        • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105
                                        • 51 DATA PRESENTATION 106
                                          • 521 Organizational Means of Workersrsquo Variables 111
                                          • 522 Organizational Means of Managementrsquos Variables 122
                                            • 532 Chi Square Test Application 166
                                            • 533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182
                                              • 6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195
                                              • 63 CONCLUSIONS 209
                                              • 64 SUGGESTIONS AND RECOMMENDATIONS 210
                                              • 65 SUGGESTIONS FOR FURTHER RESEARCH 212
                                              • REFERENCES 213
                                              • APPENDICES 229
                                              • LIST OF TABLES
                                              • Table Page
                                              • 1 Responses of Workers of ARL Organizational Mean Calculation) 112
                                                • 2 Responses of Workers of CDA (Organizational Mean Calculation) 113
                                                  • 3 Responses of Workers of IESCO (Organizational Mean Calculation) 114
                                                    • 4 Responses of Workers of KTM (Organizational Mean Calculation) 115
                                                      • 7 Responses of workers of PTCL (Organizational Mean Calculation) 118
                                                      • 8 Responses of workers of PTV (Organizational Mean Calculation) 119
                                                      • 9 Responses of workers of SNGPL (Organizational Mean Calculation) 120
                                                      • 11 Responses of Management of ARL 122
                                                          • 12 Responses of Management of CDA 123
                                                            • 18 Responses of Management of PTV 129
                                                            • 39 Chi square calculations - Security (Jsec) 169
                                                              • 40 Chi square calculation - Time reduction (Td) 170
                                                                  • 56 Facilities of Permanent Workers (Union Members) 191
                                                                      • 03 CHAP-1doc
                                                                        • CHAPTER 1
                                                                        • INTRODUCTION
                                                                          • 04 CHAP-2doc
                                                                            • CHAPTER 2
                                                                              • LITERATURE REVIEW
                                                                                • One reason of these hardships in the words of George (2004) is that a majority of working people possess labor as their only resource to carry on with their lives
                                                                                  • 221 Emergence of Labor Unions
                                                                                    • Aidt and Tzannatos (2001) asserted that the desirability of unions depends on many factors including (a) what unions do (b) how collective bargaining is organized and (c) the effectiveness of dispute resolution mechanisms
                                                                                      • 23 UNIONS ROLE FOR WORKERS BENEFITS
                                                                                        • Klaff and Ehrenberg (2003) using the data source of survey conducted in USA by the Association of Higher Education Facilities Officers 1997-1998 investigated that union coverage affected staff salaries at 163 US colleges and universities and estimated a union salary premium of 9- 11
                                                                                          • Similarly Anyemedu (2002) found that in Ghana government considers wage restraint as a means of attracting foreign investment Hence the government and employers have succeeded in installing the capacity to pay of employers as virtually the only factor to be taken into account in wage determination
                                                                                            • Labor unions also exert efforts for increasing equality and reducing discrimination in wages of workers
                                                                                              • This time reduction was prevailing everywhere at large extent as Aidt amp Tzannatos 2001) wrote that hours worked is lower among unionized than non-unionized workers This is true for both total and normal hours
                                                                                                • Unionsrsquo role in securing health safety and welfare benefits for employees has been found in following studies
                                                                                                  • Stiglitz (2000) admitted that unions have played role in Health and safety standards and had played also role in improvement of working conditions for workers
                                                                                                    • Unions also have an eye on the life of workers after the end of service For this they exert efforts either in the form of arranging employer contribution or launch their own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is shown in the several researches where unionized workers receive better pension options and opportunities
                                                                                                      • 24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY
                                                                                                        • The co-operative role of unions towards state employer and society by exerting efforts to increase productivity and efficiency has been studied by several researchers as quoted in following lines
                                                                                                          • 241 Productivity Efficiency and Profitability
                                                                                                          • 242 Work Place Harmony and Cooperative Role
                                                                                                            • Song (1999) wrote that South Korean unionrsquos struggled to promote worker compliance and commitment to firms and brought the employees back from street rallies into the workplace
                                                                                                              • 25 STRATEGIES AND TACTICS OF UNIONS
                                                                                                              • For the achievement of objectives of securing benefits for the workers and solution of their problems unions adopt peaceful and violent means and succeed when they have strength or fail in their struggle if they have no strength Numerous researches have highlighted it
                                                                                                                • Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos view large and centralized unions are more functional and influential than fragmented unions
                                                                                                                  • 251 Source of Strength of Unions
                                                                                                                    • 2511 Unionsrsquo density and their strength to effect
                                                                                                                    • 252 Peaceful Means of Achieving Objectives
                                                                                                                      • 26 CORRUPTION OF UNIONS
                                                                                                                      • Though unions exerted efforts for securing benefits gaining respect and building a fearless atmosphere for their workers but unionsrsquo history is also plagued by corruption which has been brought to light by following researches
                                                                                                                      • 261 Corruption and Selfishness of Officials
                                                                                                                      • For unions in Pakistan Khan (1992) expressed that the numerical increase of trade unions leads to personal rivalry of union leaders competing for command over small unions The trade unions leaders fight among themselves instead of fighting against management or government and every leader is status seeker caring more for his own prestige and image than to cause of common worker or unionism
                                                                                                                        • 264 Bribes (Extortion and Pay-off)
                                                                                                                          • 05 CHAP-3doc
                                                                                                                            • CHAPTER 3
                                                                                                                              • 31 HISTORY OF LEGISLATION
                                                                                                                                • 311 Laws Permitting Establishment of Unions
                                                                                                                                • 312 Laws for Settlement of Disputes
                                                                                                                                • 322 ILO Conventions
                                                                                                                                  • 06 CHAP-4doc
                                                                                                                                    • CHAPTER 4
                                                                                                                                    • RESEARCH METHODOLOGY
                                                                                                                                    • 42 POPULATION AND SAMPLING
                                                                                                                                    • 421 Stage-lsquoIrsquo Sampling of Organizations
                                                                                                                                    • 422 Stage-lsquoIIrsquo Sampling of Respondents
                                                                                                                                    • 4221 Sampling of union office bearers
                                                                                                                                    • 4222 Sampling of permanent (Unionized) workers
                                                                                                                                    • 4223 Sampling of management
                                                                                                                                      • 43 DATA COLLECTION INSTRUMENTS
                                                                                                                                        • 431 Questionnaires and their Structure
                                                                                                                                          • 44 PREPARATION OF SATISFACTION LEVEL SCALE
                                                                                                                                            • 49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS
                                                                                                                                              • 491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits
                                                                                                                                                  • 07 CHAP-5doc
                                                                                                                                                    • 51 DATA PRESENTATION
                                                                                                                                                    • 521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES
                                                                                                                                                    • Organization wise arithmetic means and percentages of all the organizations on the basis of the variables pertaining to workers have been calculated below in tables 1 to table 10
                                                                                                                                                    • Table-1 Responses of Workers of ARL Organizational Mean Calculation)
                                                                                                                                                      • Ced
                                                                                                                                                      • We
                                                                                                                                                        • Table 2 Responses of Workers of CDA (Organizational Mean Calculation)
                                                                                                                                                          • We
                                                                                                                                                          • Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)
                                                                                                                                                            • Linc
                                                                                                                                                              • We
                                                                                                                                                                • Table 4 Responses of Workers of KTM (Organizational Mean Calculation)
                                                                                                                                                                  • Jsec
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 7 Responses of workers of PTCL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 8 Responses of workers of PTV (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)
                                                                                                                                                                    • We
                                                                                                                                                                    • We
                                                                                                                                                                    • 522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES
                                                                                                                                                                    • Organization wise arithmetic means of all the organizations on the basis of the two variables pertaining to management have been calculated below in tables 11 to table 20
                                                                                                                                                                    • Table 11 Responses of Management of ARL
                                                                                                                                                                      • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing that union of ARL is exerting efforts in exhorting workers to work for the interest of employer Therefore union is successful
                                                                                                                                                                          • Table 12 Responses of Management of CDA
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (KTM) = Σ Xi2 = 82 = 400
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Organizational Mean (OGDC) = Σ Xi2 = 72 = 35
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                            • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                              • Table 18 Responses of Management of PTV
                                                                                                                                                                                • Organizational Mean (SNGPL) = ΣXi2 = 72 = 35
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                • Arithmetic Mean of Satisfaction Level of the responses of management for all the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is exerting efforts in exhorting workers to work for the interest of employer
                                                                                                                                                                                  • Variable Mean = Σ fXi 525 = 1856525 = 354
                                                                                                                                                                                  • Variable Mean = = Σ fXi 525 1730525 = 330
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 =1643 525 = 313
                                                                                                                                                                                    • Variable Mean = Σ fXi 525 = 1582525 = 301
                                                                                                                                                                                      • We
                                                                                                                                                                                      • 331
                                                                                                                                                                                        • 532 CHI SQUARE TEST APLICATION
                                                                                                                                                                                            • Table 39 Chi square calculations ndash Job security (Jsec)
                                                                                                                                                                                              • Table 40 Chi square calculation - Time reduction (Td)
                                                                                                                                                                                                • 533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS
                                                                                                                                                                                                  • Variable Mean
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 3210 = 33
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Variable Mean = Σ Xi N = 4010 = 4
                                                                                                                                                                                                  • Analysis
                                                                                                                                                                                                  • Total of Means
                                                                                                                                                                                                    • (Data from calculations of tables 52 amp 53
                                                                                                                                                                                                      • By putting the values of means of columns in the equation
                                                                                                                                                                                                      • Combine Mean = Σ i N = Se = (Pin + Wph)2
                                                                                                                                                                                                      • Se = (33 + 40)2 = 732
                                                                                                                                                                                                          • Table 56 Facilities of Permanent Workers (Union Members)
                                                                                                                                                                                                            • ARL
                                                                                                                                                                                                              • 08 CHAP-6doc
                                                                                                                                                                                                                • DISCUSSION CONCLUSION AND RECOMMENDATIONS
                                                                                                                                                                                                                • 64 SUGGESTIONS AND RECOMMENDATIONS
                                                                                                                                                                                                                • 65 SUGGESTIONS FOR FURTHER RESEARCH
                                                                                                                                                                                                                  • 09 Reference amp Appendicesdoc
                                                                                                                                                                                                                    • Appendix A-1
                                                                                                                                                                                                                    • Appendix A-3
                                                                                                                                                                                                                    • Workers by Designation of IESCO
                                                                                                                                                                                                                    • Appendix A-4
                                                                                                                                                                                                                    • Workers by Designation PTV
                                                                                                                                                                                                                    • Appendix A-9
                                                                                                                                                                                                                    • Workers by Designation of SNGPL
                                                                                                                                                                                                                    • Workers by Designation of ZTBL
                                                                                                                                                                                                                    • Appendix A-11
                                                                                                                                                                                                                    • Representatives of Unions and Employers Interviewed
                                                                                                                                                                                                                    • Appendix - B-1
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed ARL
                                                                                                                                                                                                                    • Workers by EstablishmentPlace of Posting Interviewed CDA
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed IESCO
                                                                                                                                                                                                                      • Appendix - B-4
                                                                                                                                                                                                                      • Workers by EstablishmentPlace of Posting Interviewed KTM
                                                                                                                                                                                                                      • Appendix B-5
                                                                                                                                                                                                                        • Workers by EstablishmentPlace of Posting Interviewed OGDCL
                                                                                                                                                                                                                          • Workers by EstablishmentPlace of Posting Interviewed PCP
                                                                                                                                                                                                                            • Workers by EstablishmentPlace of Posting Interviewed PTCL
                                                                                                                                                                                                                              • Workers by EstablishmentPlace of Posting Interviewed PTV
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed SNGPL
                                                                                                                                                                                                                                • Workers by EstablishmentPlace of Posting Interviewed ZTBL
                                                                                                                                                                                                                                  • Financial Benefits of Workers (by Unionsrsquo Efforts)
                                                                                                                                                                                                                                  • Non Financial Facilities of Workers (by Union Efforts)
                                                                                                                                                                                                                                    • Abbreviation
                                                                                                                                                                                                                                      • Explanation
                                                                                                                                                                                                                                      • FREQ or Freq
                                                                                                                                                                                                                                      • Frequency
                                                                                                                                                                                                                                      • IND
                                                                                                                                                                                                                                      • Indifferent
                                                                                                                                                                                                                                      • ORG
                                                                                                                                                                                                                                      • Organization
                                                                                                                                                                                                                                      • RES
                                                                                                                                                                                                                                      • Respondents
                                                                                                                                                                                                                                      • S
                                                                                                                                                                                                                                      • Satisfied
                                                                                                                                                                                                                                      • US
                                                                                                                                                                                                                                      • Un-satisfied
                                                                                                                                                                                                                                      • UN
                                                                                                                                                                                                                                      • Union
                                                                                                                                                                                                                                      • VAR
                                                                                                                                                                                                                                      • Variables
                                                                                                                                                                                                                                      • VS
                                                                                                                                                                                                                                      • Very Satisfied
                                                                                                                                                                                                                                      • VUS
                                                                                                                                                                                                                                      • Very Un-satisfied
                                                                                                                                                                                                                                      • WT or Wt
                                                                                                                                                                                                                                      • Weight or weighted
                                                                                                                                                                                                                                      • Y
                                                                                                                                                                                                                                      • YES
                                                                                                                                                                                                                                      • N
                                                                                                                                                                                                                                      • NO
                                                                                                                                                                                                                                      • Σ
                                                                                                                                                                                                                                      • Sum Total
                                                                                                                                                                                                                                        • Name of Variable
                                                                                                                                                                                                                                          • Workers Education
                                                                                                                                                                                                                                          • We
                                                                                                                                                                                                                                          • Appendix ndash F-1
                                                                                                                                                                                                                                          • Responses of Union Workers and Management of ARL
                                                                                                                                                                                                                                              • Top
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Appendix ndash F-2
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of CDA
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                • Responses of Union Workers and Management of IESCO
                                                                                                                                                                                                                                                • We
                                                                                                                                                                                                                                                  • Responses of Union Workers and Management of KTM
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTCL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of PTV
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Responses of Union Workers and Management of SNGPL
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • We
                                                                                                                                                                                                                                                    • Essentiality of Unions Inter Unions Relations and
                                                                                                                                                                                                                                                    • (Questionnaire-1 Question 18amp 19)
                                                                                                                                                                                                                                                    • About Work Council and Unionistsrsquo Training
                                                                                                                                                                                                                                                    • About Charter of Demand and Wage Cut
                                                                                                                                                                                                                                                        • Appendix G-1
                                                                                                                                                                                                                                                        • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                        • PERSONAL INFORMATION
                                                                                                                                                                                                                                                          • If yes how much amount-------------------------- How many times a year-------------------
                                                                                                                                                                                                                                                          • How---------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • How-------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              • Appendix G-2
                                                                                                                                                                                                                                                              • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR WORKERS-2
                                                                                                                                                                                                                                                                  • Personal Data
                                                                                                                                                                                                                                                                    • If yes then how-------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                      • Appendix G-3
                                                                                                                                                                                                                                                                      • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                      • QUESTIONNAIRE FOR EMPLOYERMANAGEMENT-3
                                                                                                                                                                                                                                                                        • UNION INFORMATIOM
                                                                                                                                                                                                                                                                          • 3- Did union demand for workers Job security -------Yes-----------No---------
                                                                                                                                                                                                                                                                            • 18 Is there work council in the organization Yes-------No----
                                                                                                                                                                                                                                                                                • Appendix G-4
                                                                                                                                                                                                                                                                                • DATA COLLECTION FOR ROLE OF LABOR UNIONS
                                                                                                                                                                                                                                                                                • QUESTIONNAIRE FOR TEMPORARY WORKERS-4
                                                                                                                                                                                                                                                                                  • PAKISTANrsquoS PERSPECTIVE