What would make a society so immeasurably callous as to allow its 73.8 million workers to be hugely underpaid, exploited, made to work for long hours, kept out of the social security net and be prevented from receiving old-age benefits? Of Pakistan’s 73.8 million workers, only eight million are registered with the Employees Old-age Benefit Institution (EOBI), less than three million with the four provincial Employees’ Social Security institutions and about 40 million are paid less than the minimum legal wage.
About two years back, some concerned citizens, supported by Advocate Faisal Siddiqui, approached the Sindh High Court (SHC) against less than legal minimum wages paid to about 1,000 contracted janitors of the Cantonment Board Clifton (CBC). After a protracted legal battle, on March 10, 2021, the SHC directed the CBC to comply with the minimum wage requirements. A still more important aspect of this judgment is its succinct clarification of the Principal Employer’s responsibility towards those employees who work through contractors, are often paid less and almost never included in the EOBI or Social Security schemes.
The SHC judgment clarified that where an employer retains control over the means by which the work of a contractor is done or where the contractor is directly engaged in performing a company’s work, or if the task is overseen by supervisors of the company, it may be said that a relationship of employer and employee exists between the principal employer and employees of the contractor. Thus, the laws of minimum wage, EOBI and Social Security are equally applicable to the contractor’s employees.
How is it that despite the existence of numerous labour departments, Minimum Wage Boards, EOBI and Social Security institutions, Pakistan fails to provide either to even a small percentage of its workforce? Clearly this suggests a major professional and ethical crisis. Pakistan has no option but to shut down, restructure and digitise these dysfunctional departments.
Pakistan ought to introduce the following 10 fundamental policy changes for its workforce; 1) the salary of every employee, regardless of the nature of work or employer must be paid through banking channels; 2) wages, EOBI and SS be linked to NADRA records for all workers; 3) the organisational registration be replaced by direct registration of individuals; 4) every citizen be entitled to voluntarily register with EOBI and SS and make direct self payments; 5) NADRA website must display the EOBI and SS registration number and payment status for all workers; 6) every employer (in formal and informal sector) must be required to contribute towards EOBI and SS, even if only one person has been employed; 7) the minimum wage, EOBI and SS requirements must be applicable to every kind of work; 8) there must be severe punishments for an employer dodging minimum wages, EOBI or SS; 9) government should be able to digitally monitor, intervene and ensure the minimum wage, EOBI and SS of every Pakistani; 10) EOBI contribution, calculated at different rates in different provinces ought to be made consistent for workers across Pakistan.
How many Pakistanis know that every guard of every security company in Pakistan works for 12 hours a day, for 30 continuous days a month and for wages grossly less than the defined minimum wage? How come the idea that the poor should have some leisure and life is so unacceptable and shocking to the rich? How have the state and society colluded in creating such a slave-like work environment, specially for those employed through labour contractors? Should the privileged class not break its unholy silence and speak for the rights of 73.8 million exploited workers?
Published in The Express Tribune, March 17th, 2021.
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