Effect given to the recommendations of the committee and the Governing Body - Report No 338, November 2005

Effect given to the recommendations of the Committee and the Governing Body

1. 264. The Committee last examined this case at its June 2005 meeting when it urged, once again, the Government to ensure that the ban on trade union activities at Karachi Electric Supply Corporation (KESC) is lifted immediately and the rights of the KESC Democratic Mazdoor Union, as collective bargaining agent, are restored as soon as possible. It further requested the Government to continue to keep it informed of the developments in the process of privatization, in particular as regards the preservation of workers’ rights [337th Report, paras. 102-104].
2. 265. In its communication of 24 June 2005, the Government indicated that, during the process of privatization, the KESC management was taking all possible measures to improve the working environment, and that lifting a ban on the CBA would give a wrong signal and would be likely to have an adverse effect on the interests of local as well as foreign investors. Therefore, a close liaison was being ensured between the employees of the KESC, the Ministry of Finance, the Privatization Commission and the Ministry of Labour, Manpower and Overseas Pakistanis, to address labour issues. The Government further informed that, during a meeting of privatization of the KESC, the following package had been agreed with the new owner in respect of the KESC employees: 20 per cent salary increase, maintenance of all existing benefits and facilities enjoyed by the employees, employment security for a period of one year, training programmes for KESC employees, grant of 10 per cent shares to KESC employees. However, the same package included an understanding that trade union activities would commence on expiry of the six-month period after the take over of the company by a new investor.
3. 266. The Committee notes the information provided by the Government. It recalls that, already in its January communication, the Government had indicated that the trade union rights at the KESC would remain suspended for six months after privatization of the corporation. The Committee regrets that the Government, invoking economic interests, continues to violate the trade union rights of KESC workers. It recalls in this respect that the solution to the social and economic problems of any country cannot possibly lie in the suspension of trade union rights [see Digest of decisions and principles of the Freedom of Association Committee, 4th edition, 1996, para. 31]. The Committee therefore reiterates its previous request to lift immediately the ban on trade union activities at KESC and to restore without delay the rights of the KESC Democratic Mazdoor Union and to keep it informed in this respect.