BESIDES the law governing the terms and conditions of employment, legislation on industrial relations has played a vital role in the operation of industrial and commercial establishments in Pakistan. It regulates the formation of trade unions, their activities, relations between employers and workers, and the settlement of disputes arising between them.
The process of forming trade unions and the referendum held to elect their representative union — the collective bargaining agent — is similar to that of political parties. Consequently, union activities in industry are immensely influenced by the political environment. Pakistan’s first democratic government supported the International Labour Organisation (ILO), which issued conventions safeguarding labour rights.
Although member countries were not obligated to ratify these conventions, Pakistan ratified the Freedom of Association and Protection of the Right to Organise Convention, 1948, (No 87) in February 1951. This was followed by the Right to Organise and Collective Bargaining Convention, 1949, (No 98) in May 1952. These steps gave a boost to the trade union movement. Pakistan has so far ratified 36 ILO conventions.
Trade unions in Pakistan Railways and the Karachi Port Trust were already active at the time of Partition. Left-wing unions spearheaded the trade union movement. In Pakistan Railways, the United Union of Railway Workers, led by M.A. Khan, played an important part. However, the pioneering role was played by Mirza Muhammad Ibrahim, president of the Pakistan Trade Union Federation (PTUF) and leader of the Railway Workers Union of railway workshops in Lahore. A vibrant speaker, he attracted large crowds of railway workers to highlight his struggle for their cause.
Uncertainty marks the future course of industrial relations.
Similarly, the Karachi Port Trust had established trade unions. These unions, including the PTUF, played a crucial role in shaping Pakistan’s labour movement. Nevertheless, the government remained wary of left-leaning unions and closely watched their activities.
Mirza Ibrahim continued to lead railway trade union activities for over 30 years. In a referendum held in May 1982, however, his union was defeated by the union affiliated with the National Labour Federation. The NLF, associated with the Jamaat-i-Islami, was led by Prof Shafi Malik from 1969 to 2000 as president and general secretary. Known for his wisdom and integrity, he strengthened the federation and expanded its influence. During his tenure the NLF had collective bargaining agent unions in several large organisations, including Pakistan Railways, PIA, the Karachi Port Trust, the Karachi Development Authority, Wapda and Pakistan Steel Mills.
In the early 1970s, industrial enterprises — both local and multinational — were flourishing across Pakistan. Karachi witnessed a vibrant corporate environment. However, labour federations took advantage of the restoration of their rights by the government in 1972 to bargain aggressively with employers. Their interference in factory management disrupted manufacturing operations and at times turned violent.
After the fall of the PPP government in July 1977 and the takeover by Gen Ziaul Haq, labour union activities declined, continuing with less intensity. During the following decades, several multinational companies began shedding staff through ‘golden handshake’ schemes, while some enterprises that had earlier invested in Pakistan decided to leave.
Deterioration in public services and administrative difficulties in establishing manufacturing enterprises led investors to divert resources. These developments demorali-sed labour unions and their federations, which gradually became dormant at the plant level. Consequently, ind-ustrial organisations have been deprived of the healthy industrial relations environment that prevailed in earlier decades.
In view of this situation, many employers no longer consider it necessary to employ personnel with expertise in industrial relations and labour laws. Nevertheless, disciplinary incidents continue to occur, making it important for managers to deal with them effectively.
After decades of efforts to simplify labour laws, the Punjab and Sindh governments have introduced extensive labour codes that have made the legislation even more complicated. Although prepared with the collaboration of the ILO, these codes do fully reflect the functioning and needs of local entrepreneurs.
Like the political situation in the country, uncertainty surrounds the future course of industrial relations and how employers will interact with their workforce in the absence of an effective statutory role for trade unions.
The writer is a consultant in human resources at the Aga Khan University Hospital.
Published in Dawn, March 19th, 2026
