Poor working conditions, temporary work forcing millions into poverty

LAHORE: The share of temporary work remains quite substantial in Pakistan, where it affects between 70 and 80 percent of wage and salaried employees, a recent International Labour Organization (ILO) report World Employment and Social Outlook: Trends 2019 showed.

Poor quality employment was the main issue for global labour markets, forcing 700 million people to accept inadequate working conditions and live in extreme or moderate poverty, the report said.

The highest incidence of temporary work was found, on average, in the construction sector, followed by the manufacturing sector, it showed.

Sadly, with large scale manufacturing on decline in Pakistan, the opportunity of getting even minimum wage was diminishing.

Though what is worth noting is that even if a person is getting paid the minimum wage in the country; they will not be able to afford two square meals a day for their family.

Out of more than 60 million workers in Pakistan, less than three million are registered in the social security network of the four provincial governments. This means that 95 percent of the workers are denied the social security provided by the state.

In other words, those deprived of social security benefits have to manage their health bills though their own pockets. The informal sector, though the main provider of employment pays workers much below the minimum wage.

Under these circumstances, any downturn in the economy plays havoc with the lives of the poor. This situation has been prevalent since before the induction of this government; however, it has become a matter of grave concern that pressure on the poorest segment has increased in the last six months.

The major sectors that provide jobs to the poorest workers of the country are under severe pressure, thus, the brunt of the economic downturn is once again being faced by those who are the least economically resilient.

Manufacturing has not yet picked up. However, there are hopes that jobs would be created if the apparel sector revives as a result of the recent government steps.

The construction sector has also nosedived taking with it at least a million jobs. Six months in to power, the spade work on proposed five million houses has not yet been completed. It will require huge resources that too are not available with the state.

Apart from employment itself, the basic problem in Pakistan is of having a safe and consistent job. The workers are also exploited in formal sectors of the economy, but their distress is much higher in the informal sector.

They have no appointment letter, no annual or sick leaves, they work more than eight hours a day, and in many cases, even on Sundays. Such workers are visible all across the country at roadside workshops, grocery stores, small restaurants, and car washes.

The government may not be failing to bring informal sectors into formality, but it must at least start regulating them on labour and certain regulatory issues like child labour or pollution.

To achieve this, the government has to first make the entire formal sector environmentally compliant. Those polluting water channels or emitting smoke must be asked to close down.

Forcing informal sectors on social compliance issues will have the support of the civil society. The scope of regulations can then be enlarged gradually, which will force the informal businesses either to go formal or to close down. The current practice of letting the informal sector do whatever it likes encourages them to remain informal as they are not accountable for violating any laws, including the labour and environmental laws.

Government policies are also vital in creating employment. It needs to study the pros and cons of every policy, particularly where state money is concerned.

The government policy to provide incentives to five sectors has only partially materialised.

This calls for a review of the policy, because only the textile exports have jumped by eight percent in January compared with the corresponding month of last fiscal, pushing the overall increase in textile exports by only 1.17 percent in last seven months.

The four sectors that got preferential facilities and subsidy included carpets, sports goods, leather, and surgical instruments.

In January 2019, carpet industry exports fell 12.49 percent, sports goods dropped 21.12 percent, surgical goods exports increased 4.21 percent, and baring footwear, the exports of all leather products declined by average 15 percent.