COLLECTIVE BARGAINING AND WAGE DETERMINATION IN PAKISTAN

Union wage effects is one of the most frequently investigated topics in empirical economics. The purpose of this thesis is to examine that through collective bargaining process wages could be determined which have their impact on productivity. The impact of the union/collective bargaining on productivity may be positive or negative depends on environment within which industrial relations system operates.\ud \ud During the past decade, few research works discussing issues related to industrial relations in Pakistan have been done. However they deal with only one or two specific topics such as wage determination, collective bargaining, trade unionism or profile of the Pakistani worker (see Aslam, Sarwar, Irfan, etc., PIDE). But this thesis covers the important one of wage determination through collective bargaining and productivity growth. The impact of the union/collective bargaining on productivity may be positive or negative depends on environment within which industrial relations system operates. This research work is done for students who need to know the basic issues in employment / industrial relations in Pakistan. Human resources managers, trade unionists, trainers and public administrators will also find it a useful reference.\ud \ud Chapter 1, (1.00 to 1.02), discusses the definition, concept, and models for examine employment/ industrial relations.\ud \ud (1.1.1 to 1.1.8.5) elaborates on historical development and evolution of a tripartitc system in Pakistan and looks at the main participants in the tripartite system, employer, union, and government. The subtopics of this chapter discuss about, The Tripartite Gum Model, Role of The Employers, their true representative body, Employers' Federation Of Pakistan, its Profile, Unions, The Role of Unions, Purpose and Functions of a Trade Union, Types of Union , Labour Union in a Modem Capitalist Societies, Role of The Government,\ud \ud Government and Employment Relations, and The Laws administered by The Ministry of Labour, Manpower and Overseas Pakistanis.\ud \ud (1.1.9.1 to 1.1.9.6)deals with the environment within which Industrial Relations system operates, Industrial Relations System in Pakistan, Evolution of The Industrial Relations System in Pakistan , Industrial Relations Scenario in Pakistan and Scope of Collective Bargaining in Pakistan.\ud \ud (1.1.10 to 1.1.14) has presented the Labor Policies and discussed in detail the Labour Policy, 1999 which is approved in 2002 , The concept of Good Employment Relations, Phases of developing Good Employment Relations, Benefits from Good Employment Relations and Structure to maintain Good Employment Relations.\ud \ud (1.2.0 to 1.2.5) briefly discussed about Labour Force, Employment and Unemployment, Economic Growth and Employment and Characteristics of Labour Force in Pakistan. (1.3.00 to1.3.2.15 ) summarizes the main employment labor laws with which the participants must comply. Important ones are: West Pakistan Industrial and Commercial Employment, Factories Act,1934, Industrial Relations Ordinance, 1969, Minimum Wages Ordinance, 1961 , Payment of Wages Act, 1936, Provincial Employees' Social Security Oridinance,1965, Employees' Old-Age-Benefits Act,1976, and Companies Profits(Workers') Participation Act,1968. Chapter 2, reviews different models, explaining how to estimate Unions' effect on Workers' Productivity. These are: Models of Brown and Medoff, Clark, Naheed Aslam , Ehrenberg and William Boal.\ud \ud Chapter 3, presented data of different listed companies on value added, fixed assets , man hours, and dummy variable for unionization.\ud \ud Chapter 4, has discussed about the Structure and Description of The Basic Features of The Unionization Model for Pakistan. Four equations, have estimated the union's effect on workers' Productivity and then results of these four equations for pooled as well as for cross-section data have been presented and analysed.\ud \ud Chapter 5, has presented the Conclusion and then following chapter 6 has discussed the suggestions