INDUSTRIAL ECONOMICS

Industrial Structure
a structure designed to fulfill a specific function in industry or to support or house equipment, raw materials, or communication lines. In modern industrial construction, more than 25 percent of the total cost of construction and installation work is attributed to industrial structures. There are more than 100 different types of industrial structures. They are conventionally divided into the following major groups: (1) communication structures, including conduits and pipelines for electrical power networks and for transmitting raw materials, tunnels, power transmission line towers, communication line poles, illumination masts, and chimneys; (2) transportation structures, including overpasses, unloading and crane platforms, and tunnels for conveyors; (3) tanks for gaseous and liquid products and bulk materials and structures for ventilation, drainage, and water and gas supply systems, including bunkers, gasholders, oil storage tanks, silos, water towers and pressure reservoirs, spray ponds, cooling towers, settling reservoirs, water intake works, and sewage treatment plants; (4) structures to support and house production machinery, including foundations for equipment and machines, bases for installing industrial apparatus, caissons, and racks. Industrial structures are most characteristic of the chemical, metallurgical, and mining industries. Their use is steadily rising as a result of the increasing tendency to place industrial equipment in the open areas outside industrial premises and the increasing concentration of equipment in industrial plants. Most industrial structures are predominantly reinforced-concrete and steel structures, including supports, platforms, chimneys, silos, and tanks. In some cases, structures of bonded wood are suitable for platforms and ventilating towers. Increased efficiency in the construction of industrial structures is achieved by using prefabrications and by standardization of the entire structure or its separate elements. Standard designs have been developed for many industrial structures, which make possible the employment of advanced technical ideas and the most efficient use of existing production facilities in the construction industry.

industry structure
Definition
An explanation of the operations and relationships within a given industrial sector (such as mining or paper products).

The Location of Industry

Factors influencing industrial location
Many factors influence the location of industry. Initially, in the United Kingdom industry was fairly closely tied to where the raw materials were, in particular coal for power.

Nowadays, the change from heavy industry to light, footloose industry, has meant that industries can locate anywhere and so other factors, such as communications links and government policy, become far more important. Location factors are easily divided into two sections: Physical factors and socio-economic (human) factors. A general rule is that the physical factors were the primary influence over the location of the old industries in Britain,whilst the economic ones are increasingly important in industrial location now.

Physical factors
Accessibility: The site of the new factor needs to be accessible, so that importing of raw materials and exporting of finished products is easy. Early industry had to have good access to raw materials, usually though natural routes like rivers. Nowadays access is needed to transport routes. Climate: The climate could affect where an industry locates, as it needs to attract workers to the area. This is not a particularly important factor. Land: The site of an industry is very important. Usually, flat land is the most essential thing to find. Most industries alsotry to find areas where there is room to expand once production has become successful.

Victorian industries often located in the inner city areas of towns, which didn't allow much room for expansion, but was required because the work-force could live within walking distance of the factory. Today cars have allowed industry to move to out-of-town locations as the workers can drive to the factory. Power: Initially, industry had to locate right beside its power source. Water power was used at first, and then the burning of coal produced steam power. Both sources of energy restricted where industries could locate, as they had to be beside a suitable river or near the coal field.

Now, industries can gain their power from the National Grid and so power does not really influence location a great deal. Raw Materials: Old, heavy industry required large amounts of bulky raw materials, which were very costly to transport, and so the industry located close to them. Newer industries are described as being footloose, as they are not tied by being near raw materials, which are smaller and easier to transport.

Socio-economic factors
Capital: Very important to any industry. Companies cannot set up their chosen industry without investment of money. This may come from private sources or from the government. Communications: Probably the most important factor for new industries nowadays. Most need communications links not only to the rest of the country, but to the rest of Europe and the World. Transport routes such as the motorways, airports, railways and the ports are all things that will attract industrial location. Communications increasingly also includes access to the internet, fax and phones. All these allow industries to have a greater freedom of choice over their location. Government policy: Governments can greatly influence the location of industry, by giving tax incentives, cheap rent and other benefits to companies locating in certain areas of the country. Often these are places, which the government wants to develop economically. Government policy also lead to the closure of many of the heavy industries in the United Kingdom, such as numerous coal mines and ship building yards. Labour Supply: Very important to old, labour-intensive industries. This is why many of them located in the inner cities, so that there was a huge pool of potential workers close by. With the growth in car ownership, and industries becoming more mechanised labour supply is not such an important factor for most industries. However, some industries rely on it. Many of the quaternary industries in the UK are found near the university towns of Oxford and Cambridge, as they wants to attract skilled, knowledgeable graduates for their industry.

Markets: Access to markets is vital, and this ties in with the section on communications. In the last 19th Century the market for most industries would be fairly local. Into the 20th century the market widened with improved transport technology. Now, the market for many companies is a global one.

Choose Your Location & Equipment

ARTICLE

Tips for Choosing Your Business Location

Choosing a business location is perhaps the most important decision a small business owner or startup will make, so it requires precise planning and research. It involves looking at demographics, assessing your supply chain, scoping the competition, staying on budget, understanding state laws and taxes, and much more. Here are some tips to help you choose the right business location. Determine Your Needs Most businesses choose a location that provides exposure to customers. Additionally, there are less obvious factors and needs to consider, for example:

Brand Image Is the location consistent with the image you want to maintain? Competition Are the businesses around you complementary or competing? Local Labor Market Does the area have potential employees? What will their commute be like? Plan for Future Growth If you anticipate further growth, look for a building that has extra space should you need it. Proximity to Suppliers They need to be able to find you easily as well. Safety Consider the crime rate. Will employees feel safe alone in the building or walking to their vehicles? Zoning Regulations These determine whether you can conduct your type of business in certain properties or locations. You can find out how property is zoned by contacting your local planning agency.

Evaluate Your Finances Besides determining what you can afford, you will need to be aware of other financial considerations:

Hidden Costs Very few spaces are business ready. Include costs like renovation, decorating, IT system upgrades, and so on. Taxes What are the income and sales tax rates for your state? What about property taxes? Could you pay less in taxes by locating your business across a nearby state line? Minimum Wage While the federal minimum wage is $7.25 per hour, many states have a higher minimum. View the Department of Labors list of minimum wage rates by state. Government Economic Incentives Your business location can determine whether you qualify for government economic business programs, such as state-specific small business loans and other financial incentives.

Is the Area Business Friendly? Understanding laws and regulations imposed on businesses in a particular location is essential. As you look to grow your business, it can be advantageous to work with a small business specialist or counselor. Check what programs and support your state government and local community offer to small businesses. Many states offer online tools to help small business owners start up and succeed. Local community resources such asSBA Offices, Small Business Development Centers, Womens Business Centers, and other government-funded programs specifically support small businesses.

The Bottom Line Do your research. Talk to other business owners and potential co-tenants. Consult the small business community and utilize available resources, such as free government-provided demographic data, to help in your efforts.

Technical Efficiency Definition

Technical efficiency is the effectiveness with which a given set of inputs is used to produce an output. A firm is said to be technically efficient if a firm is producing the maximum output from the minimum quantity of inputs, such as labor, capital and technology. For example. a firm would be technically inefficient if a firm employed too many workers than was necessary or used outdated capital. The concept of technical efficiency is related to productive efficiency. Productive efficiency is concerned with producing at the lowest point on the short run average cost curve. Thus productive efficiency requires technical efficiency. The concept of technical efficiency is also related to X-inefficiency. X-inefficiency is said to occur when a firm fails to be technically efficient because of an absence of competitive pressures. e.g. a monopoly employs inefficient working practises because it has no incentive to cut costs. Technical efficiency is necessary for allocative efficiency to be achieved. However, allocative efficiency also requires the optimal allocation of resources

technical efficiency
Definition
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Situation where it is impossible for a firm to produce, with the given know how, (1) a larger output from the same inputs or (2) the same output with less of one or more inputs without increasing the amount of other inputs. See also technical inefficiency.
technical efficiency Definition: Getting the most production from available resources. This term needs to be contrasted with a similar term allocative efficiency. You might want to check out the more general term of efficiency while you're at it. Technical efficiency simple means that you do the best job possible of combining resources to make a good . You don't waste material inputs. You don't have workers standing idly around waiting for spare parts. In essence, you produce a good at the lower possible opportunity cost.

Allocative efficiency
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Allocative efficiency is a type of economic efficiency in which economy/producers produce only those types of goods and services that are more desirable in the society and also in high demand. According to the formula the point of allocative efficiency is a point where marginal benefit is equal to marginal cost (MB=MC).[1][2] At this point the social surplus is maximized with no deadweight loss, or the value society puts on that level of output produced minus the value of resources used to achieve that level, yet can be applied to other things such as level of pollution. Free markets under perfect competition generally are allocatively efficient, yet are not for the cases of monopoly, monopsony, externalities, and public goods which construe market failure, or price controls which construe government failure in addition to taxation. Allocative efficiency is the main tool of welfare analysis to measure the impact of markets and public policy upon society and subgroups being made better or worse off. Although there are different standards of evaluation for the concept of allocative efficiency, the basic principle asserts that in any economic system, choices in resource allocation produce both "winners" and "losers" relative to the choice being evaluated. The principles of rational choice, individual maximization, utilitarianism and market theory further suppose that the outcomes for winners and losers can be identified, compared and measured. Under these basic premises, the goal of maximizing allocative efficiency can be defined according to some neutral principle where some allocations are objectively better than others. For example, an economist might say that a change in policy increases allocative efficiency as long as those who benefit from the change (winners) gain more than the losers lose.

Conditions[edit]
It is possible to have Pareto efficiency without allocative efficiency. By shifting resources in the economy, a gain in benefit to one individual could be greater than the loss in benefit to another individual (see Kaldor-Hicks efficiency). Therefore, before such a shift, the market is not allocatively efficient, but might be Pareto efficient. When a market fails to allocate resources efficiently, there is said to be market failure. Market failure may occur because of imperfect knowledge, differentiated goods, concentrated market power (e.g., monopoly or oligopoly), or externalities.

Allocative Efficiency in Contract Theory[edit]

In contract theory, allocative efficiency reflects a contract in which the skill the offering party demands and the skill of the party that agrees to the contract are the same.

X-inefficiency
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X-inefficiency is the difference between efficient behavior of firms assumed or implied by economic theory and their observed behavior in practice. It occurs when technical-efficiency is not being achieved due to a lack of competitive pressure. The concepts of x-inefficiency were introduced by Harvey Leibenstein.[1][2]
Contents
[hide]

1 Overview 2 Examples

2.1Monopoly

3 See also 4 References

Overview[edit]
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Economic theory assumes that the management of firms act to maximize profit by minimizing the inputs used to produce a given level of output.

Competition energizes firms to seek productive efficiency gains and produce at lowest unit costs or risk losing sales to more efficient rivals. With market forms other than perfect competition, such as monopoly, productive inefficiency can persist, because the lack of competition makes it possible to use inefficient production techniques and still stay in business.[citation needed] In addition to monopoly, sociologists have identified a number of ways in which markets may be organizationally embedded, and thus may depart in behavior from economic theory.[citation needed] Organisational slack occurs when firms opt to employ more resources than are needed to produce a given level of output. Unused capacity results in X-inefficiency. Organisational slack can be explained by the agentprincipal problem. In companies ownership and management are separate. Shareholders (the principal) elect directors (the agent) to act on their behalf and maximize shareholder value. Managers may take decisions that maximize their own and not shareholder objectives e.g. hiring extra staff to reduce manager workloads. This increases unit costs. X-inefficiency only looks at the outputs that are produced with given inputs. It doesn't take account of whether the inputs are the best ones to be using, or whether the outputs are the best ones to be producing. For example, a firm that employs brain surgeons to dig ditches might still be x-efficient, even though reallocating the brain surgeons to curing the sick would be more efficient for society overall.

Examples[edit]
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Monopoly[edit]
A monopoly is a price maker in that its choice of output level affects the price paid by consumers. Consequently, a monopoly tends to price at a point where price is greater than long-run average costs. Xinefficiency, however tends to increase average costs causing further divergence from the economically efficient outcome. The sources of X-inefficiency have been ascribed to things such as overinvestment and empire building by managers, lack of motivation stemming from a lack of competition, and pressure bylabor unions to pay above-market wages

Industrial labour
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"Industrial worker" redirects here. For the magazine see Industrial Worker.

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Industrial labor is labor in industry, mostly understood as manufacturing, but can include related service workers, such as cleaners and cooks. Industrial labor usually requires skills in crafts or engineering.

Industrial labor movement[edit]

Labor unions are usually more present in industrial labor than other branches of labor. See also industrial unionism, industrial unrest and industrial action.

"Labour union" redirects here. For the Polish political party, see Labour Union (Poland). For the Canadian political party, see Union Labour.

A trade union (British English amalgamation is also used), labour union (Canadian English) or labor union (American English) is an organization of workers who have banded together to achieve common goals such as protecting the integrity of its trade, achieving higher pay, increasing the number of employees an employer hires, and better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labour contracts (collective bargaining) with employers. The most common purpose of these associations or unions [1] is "maintaining or improving the conditions of their employment". This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safetyand policies. Unions may organize a particular section of skilled workers (craft unionism ), a cross-section of workers [3] from various trades (general unionism ), or attempt to organize all workers within a particular industry [3] (industrial unionism ). The agreements negotiated by a union are binding on the rank and file members and the employer and in some cases on other non-member workers. Trade unions traditionally have a constitution which details the governance of their bargaining unit and also have governance at various levels of government depending on the industry that binds them legally to their negotiations and functioning. Originating in Europe, trade unions became popular in many countries during the Industrial Revolution, when the lack of skill necessary to perform most jobs shifted employment bargaining power almost completely to the employers' side, causing many workers to be mistreated and underpaid. Trade unions may
[2]

be composed of individual workers, professionals, past workers, students, apprentices and/or the unemployed.

Labour and skill shortages intensify

With unemployment standing at 4.6%, and the labour market continuing to tighten, the demand for labour and skills is exceeding supply across diverse sectors of the Irish economy in mid-2000. Many companies are finding it increasingly difficult to recruit and retain workers. The government and the social partners have developed a number of measures in an attempt to address the issue, although it is likely that additional action will be required in the future. Over recent years, the Irish socio-economic context has changed from "managing economic crisis" to "managing economic growth and rising expectations". While the Irish economy was burdened with mass unemployment and huge debt during the 1980s, there has since been strong economic growth. The expansion of the economy has resulted in continual employment growth and a substantial reduction in unemployment. While the unemployment rate stood at 12% in January 1996, by May 2000 it had fallen to 4.6%. An important consequence of the substantial increases in employment and reductions in unemployment - as well as of the structurally embedded nature of residual "core" long-term unemployment, the declining birth rate, and a levelling-off of the increase in labour force participation by women - is that the demand for workers is exceeding supply. The labour market has tightened considerably, and there is increased evidence of labour and skill shortages across many sectors of the Irish economy. Companies are finding it increasingly difficult to recruit and retain workers. There has been an increase in labour turnover, as well as problems with labour "poaching" and a certain degree of upward pressure on wages. In connection with this, employee expectations have risen substantially in the context of an economic boom and the promotion of the image of Ireland as the "Celtic Tiger" economy. These problems are more acute in some sectors than in others. They are particularly apparent in the information technology, construction, clerical, call-centre, retail, tourism and catering sectors. The information technology sector is particularly affected by a shortage of highly-skilled labour. However, low- and medium-skilled employees, such as clerical workers, sales assistants, and call-centre workers, are often as much in demand as high-skilled workers. For instance, labour retention problems are clearly evident in the call-centre industry, which has an annual employee turnover of 20%. As this industry is projected to expand in the future, the problem of retention is likely to loom large. Retention problems in low- and medium-skill sectors have been exacerbated by low wages. The government and the social partners have attempted to address the problems associated with labour and skill shortages by introducing a number of measures at national and enterprise level.

Action at national level

At national level, measures to tackle labour and skill shortages are contained in the current national agreement, the Programme for Prosperity and Fairness (PPF), ratified in March 2000 (IE0003149F). Many of the measures in the PPF outlined below coincide with measures contained within the National Development Plan (NDP) (IE9911146F), and the National Action Plan (NAP) on employment (in response to the EU Employment Guidelines) (IE9905137F).

Broadening access to the labour market

The PPF contains measures to improve access to the labour market for potential suppliers of labour such as women, long-term unemployed people, disabled people, and travellers. For instance, there is a commitment to process the recommendations of the report of the "working group on access by women to the labour market", which was established under the previous agreement, Partnership 2000 (P2000) (IE9702103F). In addition, the government and the social partners are increasingly looking outside Ireland to immigrants as a source of skilled labour. The Tanaiste (deputy Prime Minister) recently announced her intention to attract 200,000 skilled immigrants to Ireland over the next seven years to address labour shortages and achieve targets set out in the NDP.

Improving training, adaptability and employability

There are a number of initiatives contained in the PPF relating to training, adaptability and employability. The PPF incorporates a commitment to evaluating active labour market programmes (ALMP s) in order to increase the integration of groups such as women, long-term unemployed people, disabled people, and travellers into the labour market. A particular emphasis is placed on increasing training provision and resourcing. There is also a commitment to developing a raft of measures to promote "lifelong learning". This includes "all forms of learning, whether formal or informal, with the aim of improving knowledge, skills and promoting personal fulfilment". An important emphasis is placed on strengthening the link between the education system and the world of work. An important recent training innovation is the development of a government-funded enterprisebased training network called "Skillnets". Skillnets is an independent company whose board is comprised of government, employer and trade union representatives. The project involves collaboration amongst companies to develop training networks in different sectors. It also incorporates trade union involvement.

Improving the work-life balance

The PPF contains a number of measures to improve the work-life balance. In particular, it is stressed that "policies to support childcare and family life are a cornerstone of future social and economic progress". Objectives in the PPF include: increasing childcare places in both the private and community sectors; increasing out-of-school hours childcare services provided by community groups and school management; and further national fiscal and social policy measures to reconcile work and family life. This last objective involves the promotion of "family-friendly" policies at enterprise level, such as job-sharing, parental leave, flexitime, homeworking, and term-time working.

New forms of financial involvement

The government and the social partners have recognised that a greater emphasis needs to be placed on diffusing new forms of employee financial involvement at enterprise level, such as gainsharing and profit-sharing schemes. These schemes allow employees to share in productivity gains at the workplace. The PPF contains a "partnership clause" that builds upon the provisions

of P2000, and provides for the voluntary establishment and deepening of financial involvement schemes, as well as various other enterprise partnership issues.

Action at enterprise level

Some employers are adjusting to labour shortages by utilising measures such as increasing overtime and workloads among existing employees, and/or using temporary/contract/subcontracted labour (as reported in Industrial Relations News 23, 2000). There is also evidence, however, that some employers have been concerned with developing "innovative" recruitment and retention strategies that incorporate the various pay and non-pay incentives recommended in the PPF (Industrial Relations News 3, 2000). This is particularly evident where companies are competing to attract and retain the services of highly valued skilled workers, most notably in the pharmaceuticals, electronics and information technology sectors. Some of these "innovative" initiatives have been developed on a partnership basis with trade unions and employees.

New forms of financial involvement

Some employers have introduced a variety of new types of pay incentives outside the terms of basic pay, such as profit-sharing, gainsharing, and performance-related pay.

Non-pay incentives
Some employers are also offering a wide variety of non-pay incentives and "fringe benefits" such as training and educational assistance, career breaks, homeworking, "family-friendly" policies such as childcare facilities and parental leave, and so on.

Commentary
With unemployment continuing to fall and the labour market continuing to tighten, the demand for labour and skills is far exceeding supply across diverse sectors of the Irish economy. In this climate, many companies are finding it increasingly difficult to recruit and retain workers, and are experiencing problems with labour "poaching", high levels of labour turnover, and growing wage pressures. These problems are frequently interlinked, in that labour and skill shortages may persuade companies to "poach" labour from other companies by offering more attractive incentives to attract and retain employees whose expectations have risen in a booming economy. This, in turn, has promoted increased labour turnover and a degree of upward pressure on wages. With the economy continuing to grow, the problems associated with labour and skill shortages are unlikely to diminish for some time. Although the government and the social partners have developed some important initiatives, it is likely that additional interlinking measures will be required outside and inside the workplace. Measures will be required to diversify the labour force by extending labour market opportunities for women, older people, long-term unemployed people, disabled people, travellers and immigrants. Sustainable long-term improvements and investments in external and in-company training and skill development, and lifelong learning programmes, are required both for people who are already in the workforce and for those seeking to enter it. Furthermore, a crucial issue is that "traditional" forms of work may no longer be suitable for accommodating the variety of modern lifestyles. To this end, measures to improve the "worklife" balance, such as childcare facilities and various forms of "employee/family-friendly" flexible working such as job sharing and flexitime, will need to be examined further. As yet, forms of "employee-friendly" flexible working are not very common in Ireland. At present, the flexibility agenda is largely geared round employer interests. In addition to "employee-friendly forms of flexible working", Irish employers may increasingly find it necessary to introduce various other

pay and non-pay incentives in order to address skill and labour shortages and associated recruitment and retention problems. (Tony Dobbins, UCD)

Labour law
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Part of a series on

Organized labour

The labour movement[show]

Labour rights[show]

Trade unions[show]

Strike action[show]

Labour parties[show]

Academic disciplines[hide]

Industrial relations Labour economics Labour history

Labour law

Labour law (also spelled as "labor" law or called "employment law") mediates the relationship between workers, employers, trade unions and the government. Collective labour law relates to the tripartite relationship between employee, employer and union. Second, individual labour law concerns employees' rights at work and through the contract for work. The labour movement has been instrumental in the enacting of laws protecting labour rights in the 19th and 20th centuries. Labour rights have been integral to the social and economic development since theIndustrial Revolution. Employment standards are social norms (in some cases also technical standards) for the minimum socially acceptable conditions under which employees or contractors will work. Government agencies (such as the former U.S. Employment Standards Administration) enforce employment standards codified by labour law (legislative, regulatory, or judicial).
Contents
[hide]

1 Labour law history 2 Individual labour law

o o o o o o o o

2.1 Contract of employment 2.2 Minimum wage 2.3 Living wage 2.4 Working time 2.5 Health and safety 2.6 Anti-discrimination 2.7 Unfair dismissal 2.8 Child labour

3 Collective labour law

o o o o o

3.1 Trade unions 3.2 Strikes 3.3 Pickets 3.4 Workplace involvement 3.5 Co-determination

4 International labour law

o o o o

4.1 International Labour Organization 4.2 World Trade Organization 4.3 Workers in multiple countries 4.4 EU law

5 National labour laws

o o o o o o o o o o o

5.1 British labour law 5.2 Canadian labour law 5.3 Chinese labour law 5.4 French labour law 5.5 German labour law 5.6 Indian labour law 5.7 Iranian labour law 5.8 Japanese labour law 5.9 Mexican labour law 5.10 Swedish labour law 5.11 United States labor law

6 See also 7 Notes 8 Further reading 9 External links

Labour law history[edit]

Main article: History of labour law Labour law arose due to the demand for workers to have better conditions, the right to organize, or, alternatively, the right to work without joining a labour union, and the simultaneous demands of employers to restrict the powers of workers' many organizations and to keep labour costs low. Employers' costs can increase due to workers organizing to achieve higher wages, or by laws imposing costly requirements, such as health and safety or restrictions on their free choice of whom to hire. Workers' organizations, such astrade unions, can also transcend purely industrial disputes, and gain political power. The state of labour law at any one time is therefore both the product of, and a component of, struggles between different interests in society.

Individual labour law[edit]

Labour law partly concerns the inequality of bargaining power between employers and employees.

Contract of employment[edit]
Main articles: Employment contract and At-will employment The basic feature of labour law in almost every country is that the rights and obligations of the worker and the employer between one another are mediated through the contract of employment between the two. This has been the case since the collapse of feudalism and is the core reality of modern economic relations. Many terms and conditions of the contract are however implied by legislation or common law, in such a way as to restrict the freedom of people to agree to certain things to protect employees, and facilitate a fluid labour market. In the U.S. for example, majority of state laws allow for employment to be "at will", meaning the employer can terminate an employee from a position for any reason, so long as the reason is not an illegal reason, including a termination in violation of public policy.[1] One example in many countries[2] is the duty to provide written particulars of employment with the essentialia negotii (Latin for essential terms) to an employee. This aims to allow the employee to know concretely what to expect and is expected; in terms of wages, holiday rights, notice in the event of dismissal, job description and so on. An employer may not legally offer a contract in which the employer pays the worker less than a minimum wage. An employee may not for instance agree to a contract which allows an employer to dismiss them unfairly. There are certain categories that people may simply not agree to because they are deemed categorically unfair. However, this depends entirely on the particular legislation of the country in which the work is. [3]

Minimum wage[edit]
Main article: Minimum wage There may be law stating the minimum amount that a worker can be paid per hour. Australia, Belgium, Brazil, Canada, China, France, Greece, Hungary, India, Ireland, Japan,South Ko-

rea, Luxembourg, the Netherlands, New Zealand, Paraguay, Portugal, Poland, Romania, Spain, Taiwan, the United Kingdom, the United States, Vietnam and others have laws of this kind.[citation needed] The minimum wage is usually different from the lowest wage determined by the forces of supply and demand in a free market, and therefore acts as a price floor. Each country sets its own minimum wage laws and regulations, and while a majority of industrialized countries has a minimum wage, many developing countries have not. 1. Minimum wages are regulated and stipulated also in some countries that lack specific laws. In Sweden, for instance, minimum wages are negotiated between the labour market parties (unions and employer organisations) through collective agreements that also cover non-union workers and nonorganised employers. Minimum wage laws were first introduced nationally in the United States in 1938,[4] Brazil in 1940[5] India in 1948, France in 1950,[6] and in the United Kingdom in 1998.[7] In theEuropean Union, 18 out of 25 member states currently have national minimum wages.[8]

Living wage[edit]
Main article: Living wage The Living wage is higher than the minimum wage. All industrialized countries are discussing Living wage, while many developing countries are still grappling with minimum wage. Clain, S. (2008). How Living Wage Legislation Affects U.S. Poverty Rates. Journal Of Labor Research, 29(3), 205-218. doi:10.1007/s12122-0079028-8.

Working time[edit]
See also: Eight-hour day Before the Industrial Revolution, the workday varied between 11 and 14 hours. With the growth of industrialism and the introduction of machinery, longer hours became far more common, with 1415 hours being the norm, and 16 not at all uncommon. Use of child labour was commonplace, often in factories. In England and Scotland in 1788, about two-thirds of persons working in the new water-powered textile factories were children.[9] The eight-hour movement's struggle finally led to the first law on the length of a working day, passed in 1833 in England, limiting miners to 12 hours, and children to 8 hours. The 10-hour day was established in 1848, and shorter hours with the same pay were gradually accepted thereafter. The 1802 Factory Act was the first labour law in the UK. After England, Germany was the first European country to pass labour laws; Chancellor Bismarck's main goal being to undermine the Social Democratic Party of Germany (SPD). In 1878, Bismarck instituted a variety of anti-socialist measures, but despite this, socialists continued gaining seats in the Reichstag. The Chancellor, then, adopted a different approach to tackling socialism. To appease the working class, he enacted a variety of

paternalistic social reforms, which became the first type of social security. The year 1883 saw the passage of the Health Insurance Act, which entitled workers to health insurance; the worker paid two-thirds, and the employer one-third, of the premiums. Accident insurance was provided in 1884, while old age pensions and disability insurance were established in 1889. Other laws restricted the employment of women and children. These efforts, however, were not entirely successful; the working class largely remained unreconciled with Bismarck's conservative government. In France, the first labour law was voted in 1841. However, it limited only under-age miners' hours, and it was not until the Third Republic that labour law was effectively enforced, in particular after Waldeck-Rousseau 1884 law legalizing trade unions. With the Matignon Accords, the Popular Front (193638) enacted the laws mandating 12 days (2 weeks) each year of paid vacations for workers and the law limiting to 40 hours the workweek (outside of overtime).

Lochner v. New York, 198 U.S. 45 (1905), a notorious, and now defunct case by the US Supreme Court that regulation of working time (for bakeries) to limit workers to a 10-hour day.

Health and safety[edit]

Main article: Occupational safety and health Other labour laws involve safety concerning workers. The earliest English factory law was passed in 1802 and dealt with the safety and health of child textile workers.

Anti-discrimination[edit]
Main article: Anti-discrimination law This clause means that discrimination against employees is morally unacceptable and illegal, on a variety of grounds, in particular racial discrimination or sexist discrimination.

Unfair dismissal[edit]
Main articles: Unfair dismissal, Wrongful dismissal, and At-will employment Convention no. 158 of the International Labour Organization states that an employee "can't be fired without any legitimate motive" and "before offering him the possibility to defend himself". Thus, on April 28, 2006, after the unofficial repeal of the French First Employment Contract (CPE), the Longjumeau (Essonne) conseil des prud'hommes (labour law court) judged the New Employment Contract (CNE) contrary to international law, and therefore "illegitimate" and "without any juridical value". The court considered that the two-years period of "fire at will" (without any legal motive) was "unreasonable", and contrary to convention no. 158, ratified by France.[10][11]

Child labour[edit]
Main article: Child labour

Two girls wearing banners in Yiddish and English with the slogan "Abolish child slavery!!" at the 1909 May Day parade in New York City

Child labour is the employment of children under an age determined by law or custom. This practice is considered exploitative by many countries and international organizations. Child labour was not seen as a problem throughout most of history, only becoming a disputed issue with the beginning of universal schooling and the concepts of labourers' and children's rights. Child labour can be factory work, mining or quarrying, agriculture, helping in the parents' business, having one's own small business (for example selling food), or doing odd jobs. Some children work as guides for tourists, sometimes combined with bringing in business for shops and restaurants (where they may also work as waiters). Other children are forced to do tedious and repetitive jobs such as assembling boxes, or polishing shoes. However, rather than in factories and sweatshops, most child labour occurs in the informal sector, "selling on the street, at work in agriculture or hidden away in houses far from the reach of official inspectors and from media scrutiny."[12]

Collective labour law[edit]

Collective labour law concerns the tripartite relationship between employer, employee and trade unions. Trade unions, sometimes called "labour unions"

Trade unions[edit]
Main article: Trade union Some countries require unions to follow particular procedures before taking certain actions. For example, some countries require that unions ballot the membership to approve a strike or to approve using members' dues for political projects. Laws may guarantee the right to join a union (banning employer discrimination), or remain silent in this respect. Some legal codes may allow unions to place a set of obligations on their members, includ-

ing the requirement to follow a majority decision in a strike vote. Some restrict this, such as the 'right to work' legislation in some of the United States.

Strikes[edit]
Main article: Strike action

Strikers gathering in Tyldesley in the 1926 General Strike in the U.K.

Strike action is the weapon of the workers most associated with industrial disputes, and certainly among the most powerful. In most countries, strikes are legal under a circumscribed set of conditions. Among them may be that:

The strike is decided on by a prescribed democratic process. (Wildcat strikes are illegal). Sympathy strikes, against a company by which workers are not directly employed, may be prohibited. General strikes may be forbidden by a public order. Certain categories of person may be forbidden to strike (airport personnel, health personnel, teachers, police or firemen, etc.)

A boycott is a refusal to buy, sell, or otherwise trade with an individual or business who is generally believed by the participants in the boycott to be doing something morally wrong. Throughout history, workers have used tactics such as the go-slow, sabotage, or just not turning up en-masse to gain more control over the workplace environment, or simply have to work less [1]. Some labour law explicitly bans such activity, none explicitly allows it.

Pickets[edit]
Main article: Picketing (protest) Picketing is a tactic which is often used by workers during strikes. They may congregate outside the business they are striking against to make their presence felt, increase worker participation, and dissuade (or prevent) strike breakers from entering the workplace. In many countries, this activity is restricted by labour law, by more general law restricting demonstrations, or sometimes by injunctions on particular pickets. For example,

labour law may restrict secondary picketing (picketing a business not directly connected with the dispute, such as a supplier of materials), or flying pickets (mobile strikers who travel to join a picket). There may be laws against obstructing others from going about their lawful business (scabbing, for example, is lawful); making obstructive pickets illegal, and, in some countries, such as Britain, there may be court orders made from time to time against pickets being in particular places or behaving in particular ways (shouting abuse, for example).

Workplace involvement[edit]
Main article: Industrial democracy Workplace consolation statutes exist in many countries, requiring that employers consult their workers on issues that concern their place in the company. Industrial democracy refers to the same idea, but taken much further. Not only that workers should have a voice to be listened to, but that workers have a vote to be counted.

Co-determination[edit]
Main articles: Co-determination and Industrial democracy Originating in Germany, some form of co-determination (or Mitbestimmung) procedure is practised in countries across continental Europe, such as Holland and the Czech Republic, as well as Scandinavian countries (e.g. Sweden). This involves the rights of workers to be represented on the boards of companies for whom they work. The German model involves half the board of directors being appointed by the company trade union. However, German company law uses a split board system, with a 'supervisory board' (Aufsichtsrat) which appoints an 'executive board' (Vorstand). Shareholders and unions elect the supervisory board in equal number, except that the head of the supervisory board is, under co-determination law, a shareholder representative. While not gaining complete parity, there has been solid political consensus since the Helmut Schmidt social democrat government introduced the measure in 1976. In the United Kingdom, the similar proposals were drawn up, and a command paper produced named the Bullock Report (Industrial democracy). This was released in 1977 by theJames Callaghan Labour government. This proposal involved a similar split on the board, but its effect would have been even more radical. Because British company law requires no split in the boards of directors, unions would have directly elected the management of the company. Furthermore, rather than giving shareholders the slight upper hand as happened in Germany, a debated 'independent' element would be added to the board, reaching the formula 2x + y. However, no action was ever taken as the UK slid into the winter of discontent. This tied into the European Commission's proposals for worker participation in the 'fifth company law directive', which was also never implemented. In Sweden, this is regulated through the 'Law on board representation' (Lagen om styrelserepresentation). The law covers all private companies with 25 or more employees. In these companies, workers (usually through unions) have a right to appoint two board members and two substitutes. If the company has more than 1,000

employees, three members and three substitutes are appointed by workers/unions. It is common practice that seats are divided between representatives from the major union coalitions.

International labour law[edit]

[show]

International labour cases

See also: International Labour Organisation, World Trade Organisation, and Private international law Since the industrial revolution the labour movement has been concerned how economic globalisation would weaken the bargaining power of workers, as their employers could move to hire workers abroad without the protection of the labour standards at home.[13] The International Labour Organization and the World Trade Organization have been the primary focus among international bodies to reform labour markets. Conflict of laws issues arise, determined by national courts, when people work in more than one country, and EU law has a growing body of rules regarding labour rights.

International Labour Organization[edit]

Main article: International Labour Organization Following World War One, the Treaty of Versailles contained the first constitution of a new International Labour Organisation founded on the principle that "labour is not a commodity", and for the reason that "peace can be established only if it is based upon social justice".[14] The primary role of the ILO has been to coordinate principles of international labour law by issuing Conventions, which codify labour laws on all matters. Members of the ILO can voluntarily adopt and ratify the conventions by enacting the rules in their domestic law. For instance, the first Hours of Work (Industry) Convention, 1919 requires a maximum of a 48 hour week, and has been ratified by 52 out of 185 member states. The UK ultimately refused to ratify the Convention, as did many current EU members states, although the Working Time Directive adopts its principles, subject to the individual optout.[15] The present constitution of the ILO comes from the Declaration of Philadelphia 1944, and under the Declaration on Fundamental Principles and Rights at Work 1998 classified eight conventions[16] as core. Together these require freedom to join a union, bargain collectively and take action (Conventions

Nos 87 and 98) abolition of forced labour (29 and 105) abolition labour by children before the end of compulsory school (138 and 182) and no discrimination at work (Nos 100 and 111). Compliance with the core Conventions is obligatory from the fact of membership, even if the country has not ratified the Convention in question. To ensure compliance, the ILO is limited to gathering evidence and reporting on member states' progress, so that publicity will put public and international pressure to reform the laws. Global reports on core standards are produced yearly, while individual reports on countries who have ratified other Conventions are compiled on a bi-annual or perhaps less frequent basis.

World Trade Organization[edit]

As one of the only international organisations with real enforcement power through trade sanctions, the WTO has been the target for calls by labour lawyers to incorporate global standards of theInternational Labour Organisation.

Because the ILOs enforcement and sanction mechanisms are weak, there has been significant discussion about incorporating labour standards in the World Trade Organisation's operation, since its formation in 1994. The WTO oversees, primarily, the General Agreement on Tariffs and Trade which is a treaty aimed at reducing customs, tariffs and other barriers to free import and export of goods, services and capital between its 157 member countries. Unlike for the ILO, if the WTO rules on trade are contravened, member states who secure a judgment by the Dispute Settlement procedures (effective a judicial process) may retaliate through trade sanctions. This could include reimposition of targeted tariffs against the non-compliant country. Proponents of an integrated approach have called for a "social clause" to be inserted into the GATT agreements, for example by amending article XX, which gives an exception to the general trade barrier reduction rules allowing imposition of sanctions for breaches of human rights. An explicit reference to core labour standards could allow action where a WTO member state is found to be in breach of ILO standards. Opponents argue that such an approach could backfire and undermine labour rights, as a country's industries, and therefore its workforce, are necessarily harmed but without any guarantee that labour reform would take place. Furthermore it was argued in the Singapore Ministerial Declaration 1996 that "the comparative advantageof countries, particularly low-age developing countries, must in now way be put into question."[17] Accordingly it is argued that countries ought to be able to take advantage of low wages and poor conditions at work as a comparative advantage in order to boost their exports. Similarly it is disputed that business will relocate production to low wage countries from higher wage countries such as the UK, because that choice depends mostly on productivity of workers. The view of many labour lawyers and economists remains that more trade, in the context of weaker bargaining power and mobility for workers, still allows for business to opportunistically take advantage of workers by mov-

ing production, and that a coordinated multilateral approach with targeted measures against specific exports is preferable.[18] While the WTO has yet to incorporate labour rights into its procedures for dispute settlements, many countries began to make bilateral agreements that protected core labour standards instead.[19] Moreover, in domestic tariff regulations not yet touched by the WTO agreements, countries have given preference to other countries who do respect core labour rights, for example under the EU Tariff Preference Regulation, articles 7 and 8.[20]

Workers in multiple countries[edit]

Main article: Conflict of laws While the debate over labour standards applied by the ILO and the WTO seeks to balance standards with free movement of capital globally, conflicts of laws (or private international law) issues arise where workers move from home to go abroad. If a worker from America performs part of her job in Brazil, China and Denmark (a "peripatetic" worker) or if a worker is engaged in Ecuador to work as an expatriate abroad in France, an employer may seek to characterise the contract of employment as being governed by the law of the country where labour rights are least favourable to the worker, or seek to argue that the most favourable system of labour rights does not apply. For example, in a UK labour law case, Ravat v Halliburton Manufacturing and Services Ltd[21] Mr Ravat was from the UK but was employed in Libya by a German company that was part of the American multinational oil conglomerate, Halliburton. He was dismissed by a supervisor based in Egypt. He was told he would be hired under UK law terms and conditions, and this was arranged by a staffing department in Aberdeen. Under the UK Employment Rights Act 1996 he would have a right to unfair dismissal, but the Act left open what the territorial scope of the statute was. The UK Supreme Court held that the principle would be that for an expatriate worker, although the general rule is that they will not have UK labour law rights, there would be an exception if the worker could show a "close connection" to the UK, and this was established through the contractual assurances given to Mr Rabat.[22] This fits within the general framework in the EU. Under the EU Rome I Regulation article 8,[23] workers will have employment rights of the country where they habitually work. But exceptionally they may have a claim in another country if they can establish a close connection to it. The Regulation emphasises that the rules should be applied with the purpose of protecting the worker.[24] It is also necessary that a court has jurisdiction to hear a claim. Under the Brussels I Regulation article 19,[25] this requires the worker habitually works in the place where the claim is brought, or is engaged there.

EU law[edit]
Main articles: EU law, European labour law, and Directive on services in the internal market The European Union, unlike most international organisations, has an extensive system of labour laws, but officially excluding (according to the Treaty on the Functioning of the European Union) matters around direct wage

regulation (e.g. setting a minimum wage), fairness of dismissals (e.g., a requirement for elected workers to approve dismissals) and collective bargaining. A series of Directives regulate almost all other issues, for instance the Working Time Directive guarantees 28 days of paid holiday, the Equality Framework Directive prohibits all forms of discrimination for people performing work, and the Collective Redundancies Directive requires that proper notice is given and consultation takes place before any decisions about economic dismissals are finalised. However, the European Court of Justice has recently expanded upon the Treaties through its case law. As well as having legal protection for workers rights, an objective of trade unions has been to organise their members across borders in the same way that multinational corporations have organised their production globally. In order to meet the balance of power that comes from ability of businesses to dismiss workers or relocate, unions have sought to take collective action and strikes internationally. However, this kind of coordination was been recently challenged in the European Union in two controversial decisions. In Laval Ltd v Swedish Builders Union[26] a group of Latvian workers were sent to a construction site in Sweden on low pay. The local Swedish Union took industrial action to make Laval Ltd sign up to the local collective agreement. Under the Posted Workers Directive, article 3 lays down minimum standards for workers being posted away from home so that workers always receive at least the minimum rights that they would have at home in case their place of work has lower minimum rights. Article 3(7) goes on to say that this "shall not prevent application of terms and conditions of employment which are more favourable to workers". Most people thought this meant that more favourable conditions could be given than the minimum (e.g., in Latvian law) by the host state's legislation or a collective agreement. However, in an interpretation seen as astonishing by many, the ECJ said that only the posting state could raise standards beyond its minimum for posted workers, and any attempt by the host state, or a collective agreement (unless the collective agreement is declared universal under article 3(8)) would be an infringement of the business' freedom to provide services under TFEU article 56. This decision was implicitly reversed by the European Union legislature in the Rome I Regulation, which makes clear in recital 34 that the host state may allow more favourable standards. However, in The Rosella, the ECJ also held that a blockade by the International Transport Workers Federationagainst a business that was using an Estonian flag of convenience (i.e., saying it was operating under Estonian law to avoid labour standards of Finland) infringed the business' right of free establishment under TFEU article 49. The ECJ said that it recognised the workers' "right to strike" in accordance with ILO Convention 87, but said that its use must be proportionately to the right of the business' establishment. The result is that the European Court of Justice's recent decisions create a significant imbalance between the international freedom of business, and that of labour, to bargain and take action to defend their interests.

Labour Legislation

Pakistans labour laws trace their origination to legislation inherited from India at the time of partition of the Indo-Pak subcontinent. The laws have evolved through a continuous process of trial to meet the socioeconomic conditions, state of industrial development, population and labour force explosion, growth of trade unions, level of literacy, Governments commitment to development and social welfare. To meet the above named objectives, the government of the Islamic Republic of Pakistan has introduced a number of labour policies, since its independence to mirror the shifts in governance from martial law to democratic governance.

Under the Constitution labour is regarded as a concurrent subject, which means that it is the responsibi lity of both the Federal and Provincial Governments. However, for the sake of uniformity, laws are enacted by the Federal Government, stipulating that Provincial Governments may make rules and regulations of their own according to the conditions prevailing in or for the specific requirements of the Provinces. The total labour force of Pakistan is comprised of approximately 37.15 million people, with 47% within the agriculture sector, 10.50% in the manufacturing & mining sector and remaining 42.50% in various other professions.

Contract of Employment

While Article 18 of the Constitution affords every citizen with the right to enter upon any lawful profession or occupation, and to conduct any lawful trade or business, the Industrial and Commercial Employment (Standing Orders) Ordinance was enacted in 1968 to address the relationship between employer and employee and the contract of employment. The Ordinance applies to all industrial and commercial establishments throughout the country employing 20 or more workers and provides for security of employment. In the case of workers in other establishments, domestic servants, farm workers or casual labour engaged by contractors, their labour contracts are generally unwritten and can be enforced through the courts on the basis of oral evidence or past practice.

Every employer in an industrial or commercial establishment is required to issue a formal appointment letter at the time of employment of each worker. The obligatory contents of each labour contract, if written, are confined to the main terms and conditions of employment, namely nature and tenure of appointment, pay allowances and other fringe benefits admissible, terms and conditions of appointment.

Termination of the Contract

The services of a permanent worker cannot be terminated for any reason other than misconduct unless

one months notice or wages in lieu thereof has been furnished by the employer or by the worker if he or she so chooses to leave his or her service. One months wages are calculated on the basis of the average wage earned during the last three months of service. Other categories of workers are not entitled to notice or pay in lieu of notice.

All terminations of service in any form must be documented in writing stating the reasons for such an act. If a worker is aggrieved by an order of termination he or she may proceed under Section 46 of the Industrial Relations Ordinance 2002, aimed at regulating the labour-management relations in the country, and bring his or her grievance to the attention of his or her employer, in writing, either him or herself, through the shop steward or through his or her trade union within three months of the occurrence of the cause of action. Forms of termination have been described as removed, retrenched, discharged or dismissed from service. To safeguard against any colorful exercise of power, victimization or unfair labour practices, the Labour Courts have been given powers to examine and intervene to find out whether there has been a violation of the principles of natural justice and whether any action by the employer was bonafide or unjust.

Working Time and Rest Time

* Working hours

Under the Factories Act, 1934 no adult employee, defined as a worker who has completed his or her 18th year of age, can be required or permitted to work in any establishment in excess of nine hours a day and 48 hours a week. Similarly, no young person, under the age of 18, can be required or permitted to work in excess of seven hours a day and 42 hours a week. The Factories Act, which governs the conditions of work of industrial labour, applies to factories, employing ten or more workers. The Provincial Governments are further empowered to extend the provisions of the Act, to even five workers.

Where the factory is a seasonal one, an adult worker shall work no more than fifty hours in any week and no more than ten hours in any day. A seasonal factory, per section 4 of the Factories Act is that which is exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning, cotton or cotton jute pressing, the manufacture of coffee, indigo, rubber, sugar or tea. However, if such adult worker in a factory is engaged in work, which for technical reasons must be continuous throughout the day, the adult worker may work no more than fifty-six hours in any week.

Section 8 of the West Pakistan Shops and Establishments Ordinance, 1969 likewise, restricts weekly

work hours at 48 hours. The Shops and Establishments Ordinance regulates persons employed in shops and commercial establishments, who are neither covered by the Factories Act nor by the Mines Act. The Ordinance is exclusive in the whole of Pakistan except for the Federally Administered Tribal Areas. Section 22-B of the Mines Act, 1923 also fixes weekly hours of work for workers at 48 hours or 8 hours each day, with the limitation of spread-over 12 hours and interval for rest for one hour every six hours. Section 22-C further limits the spread-over to 8 hours for work done below ground level.

In factories, the periods and hours of work for all classes of workers in each shift must be notified and posted in a prominent place in the principal language in the industrial or commercial establishment. The law further provides that no worker shall be required to work continuously for more than six hours, unless he or she has had an interval for rest or meals of at least one hour. During Ramadan (fasting month), special reduced working hours are observed in manufacturing, commercial and service organizations.

* Paid Leave As provided in the Factories Act, 1934, every worker who has completed a period of twelve months continuous service in a factory shall be allowed, during the subsequent period of twelve months, holidays for a period of fourteen consecutive days. If a worker fails in any one such period of twelve months to take the whole of the holidays allowed to him or her, any holidays not taken by him or her shall be added to the holidays allotted to him or her in the succeeding period of twelve months. A worker shall be deemed to have completed a period of twelve months continuous service in a factory notwithstanding any interruption in service during those twelve months brought about by sickness, accident or authorized leave not exceeding ninety days in the aggregate for all three, or by a lock-out, or by a strike which is not an illegal strike, or by intermittent periods of involuntary unemployment not exceeding thirty days in the aggregate; and authorized leave shall be deemed not to include any weekly holiday allowed under section 35 which occurs at beginning or end of an interruption brought about by the leave.

* Maternity Leave and Maternity Protection While article 37 of the Constitution makes reference to maternity benefits for women in employment, there are two central enactments, one federal and the other provincial providing maternity benefits to women employed in certain occupations. The Maternity Benefit Ordinance, 1958 stipulates that upon the completion of four months employment or qualifying period, a worker may have up to six weeks prenatal and postnatal leave during which she is paid a salary drawn on the basis of her last pay. The Ordinance is applicable to all industrial and commercial establishments employing women excluding the tribal areas. It also places restrictions on the dismissal of the woman during her maternity leave. Similarly, the Mines Maternity Benefit Act, 1941 is applicable to women employed in the mines in Pakistan.

* Other Leave Entitlements In addition to the 14 days of annual leave with pay, the Factories Act, 1934 provides that every worker is entitled to 10 days casual leave with full pay and further 16 days sick or medical leave on half pay. Casual leave is granted upon contingent situations such as sudden illness or any other urgent purpose. It should be obtained on prior application unless the urgency prevents the making of such application. As a customary practice, causal leave is approved in most cases. Sick leave, on the other hand, may be availed of on support of a medical certificate. Management should not refuse the leave asked for if it is supported by a medical certificate.

In addition to the leave entitlements, workers enjoy festival holidays as declared by the Federal Government. The Provincial Government under section 49 of the Factories Act, 1934, states all festival holidays, approximately 13 or as further declared, in the Official Gazette. Additionally, every worker is entitled to enjoy all such holidays with pay on all days declared and notified by the Provincial Government. If however, a worker is required to work on any festival holiday, one day's additional compensatory holiday with full pay and a substitute holiday shall be awarded. Under agreements made with the Collective Bargaining Agent, employees who proceed on pilgrimage i.e., Hajj, Umra, Ziarat, are granted special leave up to 60 days.

Minimum Age and Protection of Young Workers

Article 11(3) of Pakistans Constitution expressly prohibits the employment of children below the age of fourteen years in any factory, mine or other hazardous employment. In addition, the Constitution makes it a Principle of Policy of the State of Pakistan to protect the child, to remove illiteracy and provide free and compulsory education within the minimum possible period and to make provision for securing just and human conditions of work, ensuring that children and women are not employed in vocations unsuited to their age or sex.

The Factories Act, 1934 allows for the employment of children between the ages of 14 and 18 years provided that each adolescent obtains a certificate of fitness from a certifying surgeon. A certifying surgeon, per section 52 of the Act, shall on the application of any child or adolescent who wishes to work in a factory, or, of the parent or guardian of such person, or of the factory in which such person wishes to work, examine such person and ascertain his or her fitness for such work.

The Act further restricts the employment of a child in a factory to five hours in a day. The hours of work of a child should thus be arranged in such a way that they are not spread over more than seven-and-a-half

hours in any day. In addition, no child or adolescent is allowed to work in a factory between 7 p.m. and 6 a.m. The Provincial Government may, by notification in the Official Gazette in respect of any class or classes of factories and for the whole year or any part of it, vary these limits to any span of thirteen hours between 5 a.m. and 7.30 p.m. Moreover, no child is permitted to work in any factory on any day on in which he or she has already been working in another factory.

Factories are further required to display and correctly maintain in every factory a Notice of Periods for Work for Children, indicating clearly the periods within which children may be required to work. The manager of every factory in which children are employed is compelled to maintain a Register of Child Workers identifying the name and age of each child worker in the factory, the nature of his or her work, the group, if any, in which he or she is included, where his or her group works on shifts, the relay to which he or she is allotted, the number of his or her certificate of fitness granted under section 52, and any such other particulars as may be prescribed.

The provisions of the Factories Act, 1934 are cited in addition to, and not in derogation of the provisions of the Employment of Children Rules, 1995. The Employment of Children Rules extends to the whole of Pakistan with the exception of the State of Azad Jammu and Kashmir and delimits finite labour conditions afforded for the protection of minors. Rule 6 insists on cleanliness in the place of work. No rubbish, filth or debris shall be allowed to accumulate or to remain in any part of the establishment and proper arrangements shall be made for maintaining in a reasonable clean and drained condition for the workers of the establishment. Rule 7 further calls for proper ventilation in work places where injurious, poisonous or asphyxiating gases, dust or other impurities are evolved from any process carried on, in such establishment. As long as workers are present in an establishment, the latrines, passages, stairs, hoists, ground and all other parts of the establishment in so far as the entrance of the said places is not closed, must be lighted in such manner that safety is fully secured. In addition, in every establishment an arrangement of drinking water for child and adolescent workers is to be provided free of charge. All shafts, couplings, collars, clutches, toothend wheels, pulleys, driving straps, chains projecting set screws, keys, nuts and belts on revolving parts, employed in the establishment, shall be securely fenced if in motion and within reach of a child worker and further may not be operated by a child worker.

Under the Employment of Children Rules, anyone who employs a child or permits a child to work in contravention of the Constitution is punishable by imprisonment for a term extending up to one year or may be fined up to Rs. 20,000 or subject to both. Repetition of the offense is punishable by imprisonment for a term extending up to two years and shall not be less than six months.

Equality

Article 38 of the Constitution imparts the States obligations aimed at achieving equality in the form of s ecuring the well-being of the people, irrespective of sex, caste, creed or race, by raising their standard of living, by preventing the concentration of wealth and means of production and distribution in the hands of a few to the detriment of general interest and by ensuring equitable adjustment of rights between employers and employees, and landlords and tenants. All citizens are bestowed, within the available resources of the country, facilities for work and adequate livelihood with reasonable rest and leisure and the basic necessities of life, such as food, clothing, housing, education and medical relief, for all such citizens, irrespective again of their sex, caste, creed or race, as are permanently or temporarily unable to earn their livelihood on account of infirmity, sickness or unemployment.

Pay Issues

Wages are construed as the total remuneration payable to an employed person on the fulfillment of his or her contract of employment. It includes bonuses and any sum payable for want of a proper notice of discharge, but excludes the value of accommodations i.e., supply of light, water, medical attendance or other amenities excluded by the Provincial Government; the employers contribution to a pension or provident fund, traveling allowance or concession or other special expenses entailed by the nature of his or her employment; and any gratuity payable on discharge.

The Payment of Wages Act, 1936, regulates the payment of wages to certain classes of industrial workers. It applies to those workers whose monthly wages do not exceed Rs. 3,000 (51.68 US$) and are employed in factories, railways, plantations, workshops and establishments of contractors. The main object is to regulate the payment of wages to certain classes of persons employed in industry. The provisions of the Act can, however, be extended to other classes of workers by the Provincial Governments after giving three months notice to the employers of their intention to do so. The Act stipulates that wages to workers employed in factories and on railways are to be paid within seven days of completion of the wages period, if the number of workers employed therein is less than 1,000. In other cases, the time limit for payment of wages to the workers is 10 days. No deduction can be made from the wages of the workers excepts as specified in the Act, such as for fines, breach of contract and the cost of damage or loss incurred to the factory in any way other than an accident.

The employer is responsible for the payment of all wages required to be paid to persons employed by him or her. Similarly any contractor employing persons in an industry is responsible for payment of wages to the persons he or she employs. The persons responsible for payment of wages must fix wage periods not exceeding one month. Wages should be paid on a working day within seven days of the end of the wage

period, or within ten days if 1,000 or more persons are employed. The wages of a person discharged should be paid not later than the second working day after his or her discharge.

Workers' Representation in the Enterprise

Until the adoption, on 29 October 2002, of the Industrial Relations Ordinance, 2002 (IRO 2002), which repealed the Industrial Relations Ordinance, 1969, Pakistan had a three-pronged system of participation in management (i.e., the Works Council, the Management Committee and the Joint Management Board), independent of each other and each having its own sphere of activities.

The new text simplifies the system, introducing a single body in place of the three previous ones: the Joint Works Council (Article 24 of the IRO 2002). A Joint Works Council must be set up in any establishment employing fifty persons or more. It consists of no more than ten members, forty per cent of which are workers representatives. In the previous system, the Management Committee and the Works Council were composed of an equal number of representatives of the employer and workers, whereas the Joint Management Board had a workers participation of 30 per cent. The Convener of the Joint Works Council is from the management.

The Joint Works Council deals with matters, which were of the competency of the earlier Joint Management Board, such as the improvement in production, productivity and efficiency, provision of minimum facilities for those of the workers employed through contractors who are not covered by the laws relating to welfare of workers. It has also taken up tasks of the previous Works Council, i.e. promoting settlement of differences through bilateral negotiations, promoting conditions of safety and health for the workers, encouraging vocational training within the establishment, taking measures for facilitating good and harmonious working conditions in the establishment, provision of educational facilities for children of workers.

Trade Union and Employers Association Regulation

Freedom of association

The right to association is guaranteed by Article 17 of the Pakistani Constitution imparting on every citizen the right to form associations or unions, subject to any reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan, public order or morality. Under Article 3 of the IRO 2002, workers as well as employers in any establishment or industry have the right to establish and to join associations of their own choosing, subject to respect of the law. Both workers' and employers' organiza-

tions have the right to establish and join federations and confederations and any such organization, federation or confederation shall have the right to affiliate with international organizations and confederations of workers' and employers' organizations.

Registration of trade unions

Registration of a trade union is to be made under the Industrial Relations Ordinance. Workers trade u nions are registered with the Registrar Trade Unions in the Province, and if the industry or establishment is nationwide with the National Industrial Relations Commission, after fulfilling a number of requirements, listed in Article 6 of the IRO 2002. Through its registration, the trade union obtains certain benefits: registration confers a legal existence as an entity separate from its members. Trade unions in Pakistan generally function on plant-wide basis, with their membership contingent on the size of the industry/trade to which they belong. Once established, the trade unions and employers' associations have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organize their administration and activities and to formulate their programmes.

Collective Bargaining and Agreements

To determine the representative character of the trade union in industrial disputes and to obtain representation on committees, boards and commissions, the Industrial Relations Ordinance makes provision for the appointment of a Collective Bargaining Agent (CBA). The CBA is a registered trade union elected by secret ballot. The CBA is entitled to undertake collective bargaining with the employer or employers on matters connected with employment, non-employment, the terms of employment or any right guaranteed or secured to it or any worker by or under any law, or any award or settlement . Collective agreements are thus formulated by the CBA. The agreements may contain matters such as the facilities in the establishment for trade union activities and procedures for settling collective disputes including grievances and disciplinary procedures. Substantive provisions settle terms and conditions of employment, wages and salaries, hours of work, holiday entitlement and pay, level of performance, job grading, lay-offs, retrenchment, sick pay, pension and retirement schemes. Such agreements once duly executed by both parties become the source of law. The agreements should invariably be in writing and should be drafted with care, for they are meant to settle disputes rather than raise them.

In addition to statutory benefits under the labour laws, the adjustment of rights takes place through collective bargaining including adjudication in Labour Courts. The IRO 2002 has changed the appellate proce-

dure on the provincial level, which used to be brought before a Labour Appellate Tribunal. This institution was abolished by the IRO 2002. Appeals of Labour Court decisions now lie directly with provincial High Courts. Office bearers of trade unions are given protection against arbitrary transfer, discharge and dismissal. Any ill-intentioned action on the part of the employer against an office-bearer of a trade union or against a worker for trade union activities, is construed as an unfair practice and the National Industrial Relations Commission is entrusted with the task of preventing such offenses. Security of service is ensured to the workers. Similarly, unfair labour practices on the part of workers and trade unions is elaborated and incorporated in law.

Collective Labour Disputes

* Commencement of a dispute

Under the IRO 2002, if an employer or a Collective Bargaining Agent finds that an industrial dispute has arisen or is likely to arise, they may communicate their views in writing to the other party. Upon receipt of the communication, the other party has fifteen days (or more if agreed) to try and settle the dispute by bilateral negotiations.

*Conciliation

If the parties do not manage to reach a settlement, the employer or the CBA may, within fifteen further days, serve a notice of conciliation on the other party, with a copy to the Conciliator and to the Labour Court.

If the dispute is settled before the Conciliator, or a tripartite Board of Conciliators, a report is sent to the Provincial or Federal Government, with the memorandum of settlement.

* Arbitration

If the conciliation fails, the Conciliator tries to persuade the parties to refer their dispute to an arbitrator. If they agree, the parties make a join request in writing to the arbitrator they have agreed upon. The arbitrator gives his or her award within a period of 30 days or a period agreed upon by the parties. The award of the arbitrator is final and valid for a period not exceeding two years. A copy of the award is sent to the provincial or Federal Government, for publication in the official Gazette.

Strikes and Lock-outs

* Proceedings of strikes and lock-outs

If dispute settlement proceedings before the Conciliator fail and no settlement is reached, and if the parties have not agreed to refer their dispute to an arbitrator, the workers retain the right under section 31 of the Industrial Relations Ordinance 2002, to go on strike providing due notice to their employer within seven days, and the employer has the right declare a lock-out after the delay of notice of conciliation has expired. The party raising a dispute retains the option, at any time, either before or after the commencement of a strike or lockout, to make an application to the Labour Court for adjudication of the dispute.

Where a strike or lock-out lasts for more than fifteen days, if it relates to a dispute which the Commission is competent to adjudicate and determine, the Federal and/or the Provincial Government may, by order in writing, prohibit the strike or lock-out at any time before the expiry of thirty days, provided that the continuance of such a strike or lock-out causes serious hardship to the community or is prejudicial to the national interest. In such case the Federal Government or the Provincial Government shall forthwith refer the dispute to the Commission or the Labour Court. After hearing both parties, the Commission, or the Labour Court shall make such award as it deems fit, as expeditiously as possible but not exceeding thirty days from the date on which the dispute was referred to it.

Under section 32 of the IRO 2002, if a strike or lockout occurs within the public utility services sector the Federal Government and the Provincial Government may, by order in writing, also prohibit its occurrence at any time before or after the commencement of the strike or lockout. No party to an industrial dispute may go on strike or declare a lockout during the course of conciliation or arbitration proceedings, or while proceedings are pending before the Labour Court. In addition, the National Industrial Relations Commission (the Commission), adjudicates and determines industrial disputes to which an industry-wise trade union or federation of such trade unions is a party , as well as disputes which are of national importance. The Commission also deals with cases of unfair labour practices.

* Illegal strikes and lock-outs

A strike or lockout is declared illegal if it is commenced without giving notice of conciliation to the other party of the dispute, or if it is commenced or continued in a manner other than that provided by the IRO 2002 or in contravention with this text.

In case of an illegal strike or lockout, an Officer from the Labour Department may make a report to the Labour Court, and require the employer or CBA or the registered trade union concerned, to appear before the Court. The Court may, within 10 days, order the strike or lockout to be stopped. In case of contravention of the order of the Court by the employer, and if the Court is satisfied that the pursuance of the lock-out is causing serious hardship to the community or is prejudicial to the national interest, it may order the attachment of the factory and the appointment of an official receiver, who will exercise the powers of management and may do all such acts as are necessary for conducting business.

In case of contravention of the order of the Court by the workers, the Labour Court may pass orders of dismissal against the striking workers, or cancel the registration of the trade union that committed such contravention.

*Settlement of Individual Labour Disputes

Pursuant to Article 46 of the IRO 2002, a worker may bring his or her grievance in respect of any right guaranteed or secured by or under any law or any award or settlement to the notice of the employer in writing, either him or herself or through the shop steward or Collective Bargaining Agent, within one month of the day on which cause of such grievance arises. The IRO 2002 reduces the delay from three months to one month. Where a worker brings his or her grievance to the notice of the employer, the employer must within fifteen days of the grievance, communicate his or her decision in writing to the worker

If the employer fails to communicate a decision within the specified period or if the worker is dissatisfied with such decision, the worker or shop steward may take the matter to the Labour Court within a period of two months.

* Labour Courts

Section 33 of the Industrial Relations Ordinance, 2002 permits any CBA or any employer to apply to the Labour Court for the enforcement of any right guaranteed or secured by law or any award or settlement. The Provincial Government derives its authority to establish as many Labour Courts as it considers necessary under section 44 of the Ordinance. Each Labour Court is subject to jurisdictional limitations derived by its geographical parameters or with respect to the industry or the classes of cases allocated. Each Labour Court consists of one Presiding Officer appointed by the Provincial Government.

The Labour Court adjudicates industrial disputes which have been referred to or brought before it; inquires into or adjudicates any matter relating to the implementation or violation of a settlement which is

referred to it by the Provincial Government; tries offenses under the Industrial Relations Ordinance; and exercises and performs such other powers and functions conferred upon or assigned to it. While deliberating offenses, the Labour Court follows as nearly as possible procedure as prescribed under the Code of Criminal Procedure, 1898. For purposes of adjudicating and determining any industrial disputes, the Labour Court is deemed to be a Civil Court and retains the same powers as are vested in such Court under the Code of Civil Procedure, 1908 (Act V of 1908) including the enforcement of attendance and examination under oath, the production of documents and material objects, and the issuance of commissions for the examination of witnesses or documents.

An award or decision of a Labour Court is produced in writing and delivered in open Court with two copies subsequently forwarded to the Provincial Government. Upon receipt, the Provincial Government within a period of one month publishes the award or decision in the Official Gazette. The IRO 2002 abolished the Labour Appellate Tribunal. Any party aggrieved by an award or a decision given or a sentence passed by the Labour Court may now submit an appeal to the High Court (Article 48 of the IRO 2002). The High Court, may vary or modify an award or decision or decision sanctioned by the Labour Court. It may, on its own motion at any time, call for the record of any case or proceedings in which a Labour Court within its jurisdiction has passed an order, for the purpose of satisfying itself as to the correctness, legality, or propriety of such order, and may pass such order, in relation thereto as it thinks fit, provided that the order does not adversely affect any person without giving such person a reasonable opportunity of being heard.

Official Gazette The Federal Laws of Pakistan are published by the Government in a document called the Gazette of Pakistan. The Ministry of Justice, Law and Parliamentary Affairs in addition publishes individual Acts through the Official Gazette.

INDUSTRIAL DEVELOPMENT IN PAKISTAN

Since ''Industrial Revolution' industrialization is regarded essential for rapid development of the country. The countries that solely relied on agriculture have remained poor and underdeveloped, whereas the nations which gave weight to rapid development to

industry achieved high rates of development. The advanced countries of the world, America, Germany, Great Britain, Japan, Russia, encouraged industrialization on large scale. The advantages of technological change were channeled into agriculture. They developed industry which also brought revolution by mechanizations in agricultural sector. The national income increased. The balance of payments considerably improved. There was increase in employment. The country achieved balanced growth in various sectors of economy. Pakistan is the sixth largest populous country of the world and according to the State Bank of Pakistan in its 2009 annual report of economy, 62 million population of Pakistan was fallen below poverty line. After poverty the second largest hurdle in the way of sustainable development in Pakistan is unrest from which people are suffering since very long. Continuous deteriorating law and order situation across the country is no hidden from anyone. Devil forces, terrorists are playing with the lives of the innocent people. Our country mainly depends on agriculture sector, approximately 70 per cent of its income comes from agriculture and 80 per cent of working women are attached with agricultural work in Pakistan. There is need to reform this process as the other developed nation do, by aware and to educate them the importance. If we bring them in this process, they will perform a very significant role. There is need to work on this. To bring awareness among the masses, media can also play an important role about the issue. Pakistan at the time of partition in 1947, had negligible industrial base. Since the division of the Subcontinent, the Government of Pakistan has been utilizing all available resources domestic as well as external for rapid development of the manufacturing sector. Pakistan has now attained a fairly diversified base in manufactures ranging from essential consumer goods of chemicals steel, heavy engineering and tool industries. Domestic production of items such as refined sugar steel, fertilizer, cement etc has helped in import substitution and has saved substantial amount of foreign exchange. The industrial performance in terms of growth/productivity is examined in the following periods of time: 1. Growth of industrial sector from 1947 to 1950. 2. Growth of industrial in 1950's. 3. Performance of industrial sector in 1960's. 4. Performance of industrial sector in 1970's. 5. Performance of industrial sector from July 1977 1997. 6.Performance of industrial sector from 1997 onward. 1. Growth of Industrial Sector from 1947 to 1950: It had an area which produced a large share of agricultural, forest and animal products. Former East Pakistan was the main producer and supplier of jute. There was not a sin-

gle jute factory in the former East Pakistan, cotton was produced but it had no big factories to process and manufacture cotton. They were all situated in the areas which went to the share of India. There was no steel industry are in Pakistan, whereas India had a sound industrial base at the time of Independence. Out of 921 industrial units operating in the British India, Pakistan got only 34 industries i.e. 4% of the total industries established in the Subcontinent. The rest were located in India. The industries which came to the share of Pakistan were of a comparatively small size and were based on indigenous raw material. These industries included small sugar mills, cotton ginning factories flour mills rice husking mills, canning factories etc....etc. The Government of Pakistan know the importance of industrial growth and in order to expand the scale of production, the private enterprise was to be encouraged to set up industries excluding the manufacture of arms apparatus. The Government also set up an Industrial Finance Corporation and an Industrial Investment and Credit Corporation in 1948. In the period from1947 to 1950, The contribution of industrial sector was 6.9% to GDP in 1950. 2. Growth of Industrial Sector in 1950's. The private sector due to lack of capital, technical know-how, absence of entrepreneurship etc, was shy in investing capital in heavy industries. The Government took the initiative and established Pakistan Industrial Development Corporation (PIDC) in 1952 to invest in those industries which require heavy initial investment, have a long gestation period, require high degree of know-how. In the First year Plan Year Plan 1955-60, a sum of Rs. 185.11 corer was allocated of the growth of industrial sector. A large number of new industries such as woolen and worsted yarn, cycle tyros and tubes, paints, varnishes and glass were established. The production capacity of the already existing units like fertilizers, jute, paper, DDT was considerably expanded. The reduction of export duties and the introduction of Export Bonus Scheme in 1958 increased export of the manufactured goods. There was all round development of industries particularly in agricultural processing food products and textiles. The share of industrial sector to GDP rose from 9.7% in 1954-55 to 11.9% in 1959-60. 3. Performance of Industrial Sector in 1960's. The period from 1960-1970 covers two Plan periods, the Second Five Year Plan 196065 and the Third Five Year Plan 1965-70, The incentive push environments for investment, better co-ordination and political stability led to the widening of industrial base. The country achieved self-efficiency in essential the widening of industrial base. There was a shift in the establishment of consumer goods industries to heavy industries such as machine tools, petro-chemical, electrical complex and iron and and steel etc. In short the industrial performance in terms of growth, export and productivity increased, the share of industrial sector to GNP went up to 11.8% from 1960 to 1965. 4. Performance of Industrial Sector from 1970's onward. The industrial performance in terms of growth, exports and production was disappointing from 1971 to 1977. There were various reasons for the poor performance of the

manufacturing sector. One wing of the country (East Pakistan) was forcibly separated. The Country had to fight a war with India in 1970. The suspension of foreign aid, loss of indigenous market (East Pakistan), fall in exports, devaluation to the extent of 131%, the nationalization of industries in 1972 infected a heavy blow; labour unrest, unfavorable investment climate, floods, recession, reduction in investment incentives etc, caused a fall in the output of large scale industries. The annual growth rate fell to 2.8% in the industrial sector in this period. 5. Performance of industrial sector from July 1977 - 1997. From July, 1977 to 1980, the Govt, initiated a large number of measures to revise the economy. Cotton ginning rice husking and flour milling were denationalized. The private sector was encouraged to invest in large scale industries. The investment climate was gradually building up in the country. The annual growth rate in manufacturing sector was 8.2% in the 1989's. The growth of large scale manufacturing slowed down to an average of 4.7% in the first half and further to 2.5% in the 2nd half of the 1990's. and fall further due to lack of government interest, political instability and power battle between two political parties. 6. Performance of industrial sector from 1997 onward In the year 1999-2000 the manufacturing, the share of industrial sector was 18.2% in GDP in 2003-04. However it increased to 15.6% in GDP in the year 2004-05. The main factors which contributed to rapid economic growth supporting were monetary policy, financial discipline, consistency and continuity of development policies, strengthening of domestic demand continuously improving macro economic environment a stable rate global expansion of markets due to liberalization of trade in 2005etc. The overall manufacturing recorded growth of 9.9% in 2005-06 and 8.45% in 2006-07. The decline in the froth of manufacturing sector is due to multiple reasons like the reduced production of cotton crops sugar shortage steel and iron problems and global oil prices. The industry in Pakistan is trying to grow but is facing many problems like a lack of government interest, frequent power outages, law & order and frequent terrorism. As such, the environment discourages many foreign industrialists. The locals are setting up industries but they also face problems like shortage of raw materials, so it can be said that the time is set for industrial revolution but all the factors are going against it.