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LABOUR MARKET CONDITIONS

Introduction to the topic

The most broadly defined labor market consists of all of the buyers and

sellers of labor services, and consists of the global labor market.

Narrower labor markets are defined by limiting the industries, occupations,

or the geographical area covered. Even at the national level, most

researchers and analysts would focus on a few industries or occupations in

describing labor market conditions or trends. Since labor market conditions

and trends often vary among the regions and states, labor market are

commonly defined by limiting the geographical coverage to a region, state, or

oftentimes a sub-state area.

LABOUR MARKET CONDITIONS

When we use the words labour market conditions, we are referring to the in

and out flow of labour, the level of quality of that labour force, the

composition of the market with respect to gender, ethnicity, expertise and

age groups also covers the issues of exploitation of labour by the power full

industrialist as well as the role of power hungry labour leaders. Labour

market condition also encircles the activities termed as labour management,

the situation regarding quality of work life. It also covers the scenario

arising due to the change in political environment of the world. In general we

can say that it is an arena where human resource is the key player.

In this study we will focus on the condition of work force with a particular

reference to Pakistan research has provide that the employers change their

policies in response to changes in market.

Important sub-topics

LABOUR MARKET INDICATORS

On the basis of International Labour Organization Data

Unemployment rate in 2000: 7.8% (I.L.O data)

Active population:
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Total Active
Year Activity rate
Population population
2002 145.96 million 41.54 million 28.46%

Employment by sector:

Year Agriculture Industry Services

2002 47.3% 17.1% 35.6%

Employment contracts

Employment contracts are regulated by collective agreements. Individual

negotiations and law complement them.

The terms of the employment contracts are rather rigid. The limits for

dismissal and the conditions for hiring are flexible.

Salaries

Monthly national minimum wage on the 01/01/03 : US$ 42 (PKR 2,500)

for unskilled workers

Average wage per employee in manufacturing industry in 2000 : 2,981

rupees by month ( I.L.O data)

Contributions
Employers' contribution : 9 %.

Employees' contribution : 8 %.

Duration of work time

Legal weekly duration : 48 hours

Retirement age : 65
2. GROWTH OF POPULATION AND LABOUR FORCE

The labour force (around 42 million in 2002) is not a very large proportion of

the population (146 million in 2002) in Pakistan. It is estimated to be around

28-29 per cent. Population growth had been increasing over the years, up to

and including 1970s. Although the last census was carried out in 1980,
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projections on the population growth rate suggest that it is likely to have

fallen and has probably stabilized now to just under 3 per cent.

Labour force growth rates on the other hand were higher than that of

population in 1970s (figure 1.1) but have been generally lower after the

1970s. Although the labour force survey figures for the 1990s can also be

interpreted to suggest a decline in labour force growth on trend, there are

problems in comparing the labour force trends before and after 1990-91.

There is however a clear decline between the two definitionaly comparable

periods of the 1970s and 1980s.

This means that labour force growth, which is significantly lower than

population growth, is likely to be falling while the growth of population is

likely to be stabilizing.
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If serious data problems are excluded as a cause, then one of the main

reasons for falling labour force growth rates is reflected in the decline in

participation rates due to withdrawal of sections of persons of working age

from the labour force. Educational enrolments for an increasingly younger

population of working age mean that the labour force growth will begin to

rise in the near future. This has implications for trends on unemployment

and underemployment in the present situation. These are likely to be

magnified with an increase the growth rate of the labour force in the

future.

LABOUR FORCE AND EMPLOYMENT

Employment Situations

The “economically active population” comprises persons of either sex who

furnish the supply of labour for the production of goods and services, during

a specified time reference period. But not all these persons are currently

active (or in the labour force) at any particular point of time. In Pakistan,

the currently active population or labour force comprises of all persons ten

years of age and over who fulfill the requirements for inclusion among

employed or unemployed, defined as follows, during the reference period i.e.

one week preceding the date of interview.

• The “employed” comprise all persons ten years of age and over who

worked at least one hour during the reference period, and were either “paid

employed” or “self-employed”. (Persons holding permanent jobs, who for any

reason had not worked during the reference period is treated as employed).
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Unemployment Situations

The “unemployed” comprise all persons ten years of age and over who during

the reference period were:

– Without work,” i.e. were not in paid employment or self-employment;

– Currently available for work,” i.e. were available for paid employment

or self employment; and

– Seeking work,” i.e. had taken specific steps in a specified recent period

to seek paid employment or self-employment.

• The underemployed comprise all employed persons who during the

reference period were working less than the “normal” duration on an

involuntary basis and were seeking or were available for additional work. In

Pakistan, the underemployment rate is estimated as a ratio of the employed

(who worked less than 35 hours a week) to total labour force. With the help

of the available data, we analyze below the latest employment, unemployment

and under-employment situation in Pakistan.

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FACTORS EFECTING LABOUR MARKET TRENDS.

1. Demographic changes.
GLOBALIZATION:
The effects of globalization on the change of trends of labour.
a. Due to the rapid changes of technology in different countries(china,
korea ee) the requirements of the labour exclusively effect the
labour market condition as un skilled labour is getting out of the
market and the un skilled labour is compelled to getting training to
survive in the advance industrial technology and its requirements.

DEMOGRAPHIC CHANGES:-
The demographic changes are created due to the enterence of female labour
in the modern technological eara. The female labour in the past was
exclusively unskilled and illetrate. The abrupt changes in the advance
technology required majority of skilled labour and the female labour after
getting technical education entered in the labour market and ready to
accept low rate wages as compared male skilled workers.
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The enterence of IT in the modern eira mostly change the requirements of

modern industry and the female labour having equal better qualities entered
and swearly effected the previous market concept.

Another factor in the premative industrial eara was child labour. The mostly
un skilled child labour was working in different industries on very nominal
wages.

Now in the modern era UNO department ILO placed the concept of child
labour free in the modern industry. It also create the new trend.

TECHNOLOGICAL CHANGES:
In the remote past the industry was manly handled by un skilled labour and
production process was very slow due to hand made production.
The technological change and the production process was inproved with the
skilled labour and majority of un skilled labour was badly effected and
created big changes on the labour market.
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. Practical study of the organization respect to the topic

INTRODUCTION

Sayyed Engineers (Pvt) Ltd.

Sayyed pioneered the ballpoint pens manufacturing in South Asia at a time

when such precision engineering as is involved in the production of ball point
pens, especially the tips, was thought to be possible only in the advanced
countries. From the time of its inception in 1967, it has continued its
commitment to quality and innovation. In addition to being the largest
producer of ballpoint pens in Pakistan, it has been exporting its quality
products to many countries, including UAE, Jordan, Iraq, Egypt, Madagascar,
Holland, Morocco, Afghanistan and Saudi Arabia.
At Sayyed, ballpoint pens are injection molded, and refills produced, from
the best machines and raw material available from Germany, Switzerland,
and Japan. Detailed quality control procedures have been implemented, for
which the company has obtained ISO 9002 certification. It produces
ballpoint pens,
PRODUCTS

BALLPOINT PENS

Piano Piano Crystal Piano Clear Piano plus Piano Excel

Clariflo Adagio Echo Lyrico Viola
Solo Fine Coro Serene Soprano
FIBER TIP PENS

Rondo Silko Fineliner Lore Lento Tempo

GEL PENS

 Ode 2 Gel
 Flute Gel

VENDING PROJECTS
Sayyed has utilized its vast experience in the field of plastic injection
molding by diversifying into the manufacture of plastic components for
various companies, besides producing plastic ballpoint pens.

The spare injection molding capacity available is now being used in vending
jobs for the automotive industry and high quality plastic products are being
manufactured for Honda Atlas Cars (Pakistan) Limited and Saigols Qingqi
Motors Limited, Lahore. Additionally, plastic parts of telephone sets are
being produced for a major supplier of telephone sets in Pakistan.

The company offers its advanced injection molding facility for custom
injection molding of other plastic components as well.
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Practical Study of Sayyed Engineers (Pvt) Ltd.

The work force of in Sayyed Engineers (Pvt) Ltd is working under two
categories.

Permanent Employees
This category of the work force is appointed under Industrial Relation
Ordinance (IRO) and they are paid according to the rules of the company.
The employees working under this category enjoying all the benefits of such
as Medical, Bonus, and Temporary advances, Recreation Allowances, annual
increments, efficiency targets, over time, etc.

Employees on Contract
Casual employment is based on three-month period. Casual workers are
normally unskilled and they are employed as per the job requirements in
different departments. They are not eligible for the benefits of the
permanent employees. They can be fired at any time with out any notice.

Working Conditions
It is observed that the working conditions are super normal and every body
enjoying a good and pleasant environment.
But the deep study of the Organization show that from the last 15 years no
fresh recruitments. The casual labour is getting as per minimum wage act
and no skilled employee is appointed in this category. The working
environment as compared industries much better because the workshops are
properly ventilated, lighted, and free from stocks due to proper fencing on
machines, free from dust and fumes. These are the main advantages, which
are attracting the labour to work better. Many casual workers have dreams
to be a permanent worker here.
In respect of emoluments company paying the fringe benefits and many
other incentives are introduced, so every employee can get the handsome
pay after the monthly working.
Company also provided the recreational facilities to every employee. The
relations of management and workers are also very better and prosperous.

Review of theoretical and practical situations

The theoretical and practical studies give the following points.

 The organization is exploiting the new workers because they can never be
permanent employee.
 The number of permanent workers is decreased with the passage of time.
 The Union strength is also getting week.
 The company getting much more from the manpower at a rate, which is
much cheaper than the normal wage rate which origination, have to pay.

Merits, demerits, deficiencies or strengths of the organization with respect

to your topic.
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Sayyed Engineers (Pvt) Ltd has a history of good working conditions for the
work force and is being among the best for compensating its employees with
regard to the pay and allowances as well as the facilities such as medical,
bonus, recreation allowance, Temporary advances and conveyance etc.
Timely promotions and increments are given to the workers. That is why
there is a little turnover of the workers in the company, and the workers
feel job satisfaction.
The organization is also being registered with the other Government
institution for worker’s welfare, like “Social Security” and “Employees Old
age benefits institution”.
The company is also registered with the Labour courts and they have a pure
Union of workers, which is much formed, and it is well maintained by the
company as per the agreement of the workers.
Company also arranges many training programmers for its workers with the
help of apprentice’s ship training centre. Company has also built its internal
Mould Making Team, which is very use full for the company as well as for the
carrier of the workers.
The organization is treating its employees well when we observe it in relation
to the other companies in the country, which is an important strength of the
company.

Drawbacks
• The union is also trapping the company for many non-serious benefits
and other non-regular increments.
• The junior supervisory staff is non-qualified and they are rankered
from the existing workers cannot under stand the basic theme of the
management.
• Now a day The Company is not employing the workers on permanent
basis, which is causing frustration among all the workers on contract,
and they are feeling insecurity of their job.

Conclusions and recommendations.

The working condition of the Pakistan market is not so good because the
economic activities laying behind the growth of population so in this respect
employers are shaking the trust of labour and they are using unfair means to
curtail the benefits of the workers.

Annex, if any