Labour versus capital

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Marx famously posited that labour and capital are locked in an antagonist relationship. Although many authoritarian states and populist leaders claim to represent the interests of the working classes, we have not really seen any successful example of a state led by the working classes. This does not, however, mean that there is no way to curb the unfair excesses of capitalism. Some mixed economies have rolled out impressive welfare policies to help secure a decent lifestyle for a majority of their populace. In most other countries, however, the gap between the owners of capital and the labouring masses keeps growing.

The state can play an important role in safeguarding labour. Yet, powerful vested interests readily hijack the state and then use state power to further their own selfish agendas. Trade unions can push back against capitalistic exploitation. However, trade unions too can be repressed, corrupted or subverted, which then undermines their ability to shield workers from abuse.

This year's Global Rights Index, published by the International Trade Unions Confederation, indicates a worsening global crisis for not only workers but also trade unions. Labour rights have deteriorated sharply in the global south as well as in Europe and the US. Only seven out of 151 countries surveyed for this annual index were seen upholding worker rights. Elsewhere, the right to collective bargaining is being severely compromised.

Populist leaders readily dismiss trade unions as "foreign agents", the labour's right to strike is being countered using force, and even registering a trade union has become difficult across different parts of the world.

The labour rights situation in Pakistan is hardly encouraging, with an overall score lower than the regional average observed across South Asia as a whole. The situation in India is much better. As against Pakistan's 53.5, India has scored 65 points, using 97 indicators derived from ILO conventions. Despite the right of association being enshrined in the Constitution of Pakistan, this right has been strictly regulated by consecutive governments within our post-colonial state.

Although Pakistan has ratified over three dozen ILO Conventions, including those that require allowing workers to engage in collective bargaining, these rights remain largely ignored. Less than 2% of Pakistan's workforce is estimated to be unionised today.

Trade unions are restricted in many sectors, and they are completely prohibited in export promotion zones. Employees of state administration, government services and state enterprises do not have the right to strike. A trade union office-bearer can be disqualified for violation of Labour Court orders to stop a strike. Based on the 1999 Anti-Terrorist Ordinance, illegal strikes, go-slow actions and picketing are considered acts of 'civil commotion', which can trigger fines and long prison sentences.

Informal workers, such as agricultural workers, sharecroppers and artisanal miners, remain unorganised, and they are subjected to ruthless exploitation. Beyond the purview of regulatory requirements, employers making decent profits in the informal sector can easily avoid paying minimum wages or ensuring basic workplace safety. They can even employ children.

Increasingly, prominent industries and companies are using temporary contracts to deny workers basic facilities, employment stability and the right to organise or negotiate collectively. Non-exporting firms, which have no fear of losing international business due to worker rights violations, often view compliance with labour regulations as an unnecessary hassle that undermines competitiveness and profitability.

Labour laws on paper may require employers to hire disabled individuals or adhere to gender equity requirements, but in practice these regulations are easily violated when there are no labour unions to hold employers accountable. Pakistan's labour departments lack sufficient resources, training and motivation to protect workers. Exploitative employers thus rarely face consequences.

Given this scenario, Pakistan's dismal ranking on the Global Labour Index seems well deserved.