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Industrial relations in Johnson & Phllips (Pak) Ltd.

Johnson & Phillips commenced its operations in Pakistan in 1948. A manufacturing unit for Switchgear was established in 1950 and Distribution transformers in 1966. In 1983 G.E.C., were the major shareholder, and later on acquired by a Pakistan entrepreneur.

Besides some temporary employee there are about 197 regular workers. Most of them are associated with the organisation for more than 20 years. They are categorised as Tradesman Class-I, II, Gang leader, Assistants and Helpers. Manufacturing takes place in two factories, one meant for Switchgears the other for Transformers. These two Factories have further subdivisions.

Industrial Relations in any organization are based on the human behaviour. It is generally said "If there is no dispute it is also a dispute" so the existence of dispute is also a part of good industry. First industrial unrest occurred in 1976 which lasted for more than 52 days, besides some go-slow and tool down strikes. Generally all the Charter of demands in the past were settled amicably. Since 1983 when the present encumbment took over as Chairman and Chief Executive, four agreements with the Union at plant level and only one by conciliation were concluded.

Fortunately since 1983 till date, we have been successful in resolving all difference and disputes amicably through a dialogue across the table. It is because of the management who is quite affectionate towards workers and is professional in essence. And the workers, in turns are quite sensible and accommodative. Their leaders too do not believe in confrontation. it is also a fact that for a better wage-structure the profitability counts much. The profitability cannot be raised without enhancing productivity and maintaining the cost of production at the minimum level. For that purpose the cooperation of the workers is quite essential. In view of this, the company introduced an incentive scheme which upheld the principle of extra pay for extra efforts. The scheme proved quite beneficial, the productivity of the company enhanced to a greater extent which brought financial prosperity for the workers. So far the labour management relations are concerned we believe in dialogue. The workers are required to be convinced to get required results. Unfortunately Pakistan is a developing country where poverty exists and the expectations of the workers are too high. Satisfaction of workers in totality is impossible because of financial constraints of the employer. So a sense of better understanding is required for cordial labour-management relations and for industrial peace in particular.

Meanwhile the labour laws in our country are out-dated and need amendments according to our contemporary demands. Pakistan in its early days, though, ratified ILO convention but labour laws in our country are not practiced in letter and spirit. As a result labour laws in Pakistan could not prove to be a catalyst in promoting industrial activity in the country. Simultaneously these laws are the constant source of annoyance between the workers and the management. Under the circumstances, following is suggested for industrial harmony and better understanding:

a. Employer be awarded the right of hire and fire.

b. Labour Court trial should be a summary trial.

c. Labour laws should be amended quickly.

d. Collective bargaining be encouraged instead of announcing any increase in emoluments by government.

e. Leaves and holiday be restricted and reduced.

f. Labour federation should be industry-wise.
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Title Annotation:Industrial Relations in Pakistan '92
Author:Khan, Sardar Mohammad
Publication:Economic Review
Date:May 1, 1992
Words:548
Previous Article:Board of directors lacks labour representation.
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