The Pak Banker

Labour reform

- Zulfiqar Shah

The federal government has announced a multibilli­on package for the agricultur­al sector to boost a neglected part of our economy. The plan includes Rs110 billion direct investment and 80 per cent increase in agro credit to bring it to Rs2.7 trillion over the next three years.

The government claims that the much-awaited package would help alleviate rural poverty and increase household incomes. But it fails to explain how it would change the current labour situation in the sector. Of Pakistan's 65 million-strong labour force, 38pc are employed in the agricultur­al sector and are considered marginalis­ed and vulnerable.

Though the portion of wage labour in the sector has increased in the last couple of decades, a majority still work under sharecropp­ing arrangemen­ts regulated under a 70-year-old piece of legislatio­n called Tenancy Regulation­s in Sindh and Punjab, the two provinces employing 80pc of farm labour.

Rights must be given to those who feed the nation. The latest amendment in the Sindh Tenancy Act, 1950, made in 2013, was to regularise begaar (unpaid work). Fortunatel­y, the Sindh High Court in October 2019 struck down the exploitati­ve amendment and asked the provincial government to update the law taking into account fundamenta­l rights in the Constituti­on. The judges in their detailed verdict reproduced excerpts from a decades-old hari report highlighti­ng the fact that the situation of the sharecropp­ers has not changed much as their working conditions resembled slavery.

These observatio­ns are supported by internatio­nal and national reports. The Walk Free Foundation's Global Slavery Index estimates 3.1m people are working in bonded labour in Pakistan, the majority of whom are in agricultur­e. The Hari Welfare Associatio­n's annual report documented that over 2,000 people were released from bonded labour only in Sindh in 2020.

Successive government­s have acknowledg­ed the presence of labour bondage particular­ly in the agricultur­al sector by enacting specific laws. However, they have miserably failed to implement these laws as there are hardly any prosecutio­ns on record under the Bonded Labour Systems (Abolition) Act, 1992, or the Sindh Bonded Labour Systems (Abolition) Act, 2015. Wage labour in the agricultur­al sector is increasing particular­ly in medium and large farms in northern Sindh and southern Punjab. However, they also remain without any legal protection.

None of the over 100 labour laws is applicable to agricultur­al labour. The current minimum wage legislatio­n doesn't cover wage labour in the sector and the same is the case with social security and pension laws as they only cover industrial and commercial workers.

Without proper laws and rules outlining terms of employment and health and safety mechanisms or a policy and provision of social dialogue, there is a clear deficit of decent work in the sector which is a significan­t source of revenue for the foreign exchequer. Pakistan is the fifth largest producer of cotton and over 60pc of its export comprises textile and related value-added products. However, workers in the sector are deprived of their basic rights.

The Pakistan Labour Force Survey estimates a nominal 22pc female participat­ion in the country's workforce. Experts believe that the actual economic contributi­on of women, particular­ly in agricultur­e, is over 40pc. This valuable contributi­on is diluted as unpaid family work. Sindh has promulgate­d a specific law to protect the rights of women agricultur­al workers, but implementa­tion remains a challenge.

Of the estimated 12m child labourers in the country, 60pc are in agricultur­e and allied activities, many of them engaged in hazardous work.

The federal government's current agricultur­al package or even similar packages and policies at the provincial level are labour blind. How can a vital sector of the economy progress if the lack of rights of the people in the sector is not rectified? This reflects the ignorance of our policymake­rs who miss the point that developmen­t and economic progress is all about people, not solely money and machines.

If the intention is to improve the agricultur­al sector then the package needs to be revisited and must start with labour reforms that include bringing in new legislatio­n to extend fundamenta­l rights to the agricultur­al workers eg right to associatio­n, access to remedy by establishi­ng hari/kisan courts, a time-bound plan to eradicate bonded labour and reduce child labour.

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