I returned to Pakistan in autumn 1973 after completing my BS in General Business Administration and MA in Management. I was immediately inducted into the family textile business and given responsibility for Human Resources, Administration and other departments.
HUMAN RESOURCE MANAGEMENT
I returned to Pakistan in autumn 1973 after completing my BS in General Business Administration and MA in Management. I was immediately inducted into the family textile business and given responsibility for Human Resources, Administration and other departments.
The labour situation during this period was volatile and disruptive, with a large number of labour litigation cases. However, this gave me the impetus to learn the dynamics of labour management and Human Resources. Later, I became involved with the Employers Federation of Pakistan, where I gained immense knowledge by interacting with employers and workers’ leadership. The employers’ representatives on the EFP Board of Directors were mostly HR directors or managers of well-known national and multinational corporations. They would usually talk about X number of labour cases in courts that they had to deal with.
I used to be amazed that, despite their experience, knowledge and acumen, there were still labour court cases. Once, I cynically mentioned to them that my factory manager, who was not very educated or competent in labour law, skillfully handled all workers and even staff members. There were zero labour cases during his tenure. I told them that “probably the reason is that all you technocrats know your workers by their designation or employee number, while my factory manager knows them by name”.
The above narrative still holds true for those organisations that treat workers as strategic partners in the company and understand and accept their difficulties, problems and predicaments. They are aware of the financial pressures, social issues and complications of their employees. Hence, workers are more likely to stay with the organisation rather than become rolling stones. Legal recourse is rarely necessary, as matters are usually resolved amicably in the HR office or by the hierarchy. I have been managing family companies for 52 years and this formula has time and again proven successful. So much so that workers often tell me not only that I am the head of the business, but also their leader and advisor. Of course, I also give credit and praise to many moderate leaders of Workers Federations who have always been supportive and positive.
Over the past few years, a wedge has again been created between management and employees. Despite the presence of some form of Corporate Social Responsibility, issues have been creeping up. The prime source of this disaffection has been the proverbial Damocles' sword hanging over workers. The difficult economic situation has made holding on to jobs perilous. Many employers are also between a rock and a hard place. Reports circulating on social media mention the closure of over 140 textile mills that are members of APTMA.
Excessive, back-breaking tax rates have led to factory gates being locked and an ongoing exodus of foreign corporations from Pakistan. Corruption is endemic and even the IMF had to issue a detailed 186-page report. Exports are edging forward at a snail’s pace while the import bill is escalating. And then there are other troubling issues adding to the overall misery. Of course, there is the usual talk about economic reforms emanating from Islamabad, mostly to instill confidence in the business sector but usually it is No Action, Talk Only.
Over 30 per cent of employers in the formal sector and over 90 per cent in the informal sector are not keen on paying the minimum wage of Rs40,000 per month. The concept of a living wage, now becoming a standard in developed countries, is still a pipe dream in countries such as Pakistan
Workers are in even more dire straits. Over 30 per cent of employers in the formal sector and over 90 per cent in the informal sector are not keen on paying the minimum wage of Rs40,000 per month. The concept of a living wage, now becoming a standard in developed countries, is still a pipe dream in countries such as Pakistan. Although there is the usual clamour about unionisation through freedom of association and the right to collective bargaining, the ground reality is that less than 2.0 per cent of companies have worker unions.
Today, even diehard labour leaders have stopped complaining about ‘appointment letters’ for workers and have now accepted the fait accompli that holding on to jobs is paramount. The workforce, by and large, is more worried about losing their paychecks than agitating for unions in the workplace. However, major export-based companies more or less comply with ILO international labour and environment standards as well as conditionalities imposed by global brands.
In this unstable and unpredictable environment, where peace and harmony in factories or offices are imperative, the viability of the enterprise is paramount and the sustainability of employment is the objective, there is a crucial need to structure a new ecosystem that benefits both social partners. There is an organisation, the Workers Employers Bilateral Council of Pakistan (WEBCOP), established three decades ago by enlightened employers and moderate workers’ leadership. (This writer coined the name.)
It is now time to develop and agree on a new social contract through focused social dialogue. The new social contract should be based on a people-centric foundation instead of depending solely on the influence of obsolete labor laws or outdated templates of external conditionalities. It is now time for management and union heads to revisit their bloated egos and instead become passionate leaders who chart a path toward the sustainability of the enterprise as well as the protection of jobs.
Being a leader or becoming a leader demands a pragmatic mindset and shedding a myopic way of thinking. Leadership requires responsibility and controlling temperaments instead of rabble-rousing by labour leaders or egoistic attitudes within managerial hierarchies. The task of managers must include ensuring that the enterprise is fully operational, that workers are retained, that employees are paid the prescribed emoluments and that compassion and composure are the daily norms. Workers’ leaders must share the values of efficiency, productivity and empathy with employers. The objectives of progress, prosperity and performance are also shared values.
The human touch is now critically important for both social partners and must be assiduously promoted in the industrial ecosystem. The architecture of various jobs and tasks is rapidly changing. Technological innovation is transforming the industrial landscape and forcing employers and employees to adapt to the new reality. Workers have to unlearn, learn and relearn their skills and their approach to work in the future.
The leadership of the social partners must possess the wisdom to grasp the complexities of the future workplace. It is essential to foster a psychological outlook among workers and managers that, although Artificial Intelligence will become the new norm, human emotions, values, and considerations will always remain. These will endure because human beings make androids and humanoids and will not have the benevolence or warmth of a human heart.
The writer is a former president of the Employers Federation of Pakistan.
