Salient features of Benazir Bhutto’s legacy may be traced back to the first Pakistan Peoples Party government led by Zulfikar Ali Bhutto, who took over the government after the secession of the East Pakistan. Bhutto had to lead reconstruction in what remained of Pakistan and give a voice to the working class.

The ZA Bhutto government came up with the first-ever comprehensive Labour Policy in February 1972. This was followed by a raft of legislation and setting up of institutions like the Employees’ Old-age Benefits Institution (EOBI) which was established in 1976.

The 1972 Labour Policy had a clause for encouraging industry-wide trade unions so that the workers could be organised at a national level. The policy not only provided for workers’ participation in the management of plants and factories but also increased the workers’ share in profits from 2.5 percent to 4 percent under the Companies Profits (Workers Participation) Act. This would later be raised to 5 percent.

The Bhutto regime had provided a major incentive for the labour alongside the minimum wage regime, in the form a cost of living allowance that was added to salaries fixed according to the minimum wages laws. As there was no collective bargaining at many organisations, this allowance helped a large number of workers sustain the impact of inflation. Unfortunately, this practice was suspended by the military government of Gen Ziaul Haq.

The ZA Bhutto regime also established the National Industrial Relations Commission (NIRC). Its mandate was to organise workers’ education and facilitating formation of industrial unions at national level. It was assigned no other job.

The labour movement suffered a big setback during the martial law regime of Gen Ziaul as the military rulers reversed many of the progressive decisions taken by the Bhutto government. The Zia regime also suspended labour inspection in industries and also trade union activities remained suspended. The military regime also promoted the contract labour system.

After Gen Zia’s death in August 1988 in an air crash an illegal caretaker government held general elections on November 16. The government was illegal in that no caretaker prime minister was named and Gen Aslam Baig ruled the country without acknowledging it.

After the elections, no party had the required majority to form a government. As head of the largest single party Benazir Bhutto announced her intention to form the government.

The army chief met her and offered her the federal government on three conditions. One of these was the ratification and implementation of a $497 million agreement the International Monetary Fund signed three days before the general elections. The other conditions were retaining Sahibzada Yaqoob Khan as a foreign minister and VA Jafery as de facto finance minister.

The prime minister, the government and the assemblies were sacked within two years over vague corruption charges but the main reason for Benazir’s removal was non-implementation of the IMF conditionalities that included deregulation and liberalisation of the economy and privatisation of state owned enterprises. These were met under Nawaz Sharif who replaced her as prime minister after being elected at the head of the Islami Jamhoori Ittehad which was formed with the active support of the establishment. Privatisation of state owned industries and banks was initiated in 1990s. This resulted in massive unemployment. No government since then has been able to roll back the IMF agenda. During both tenures of Benazir Bhutto as prime minister the privatisation process was stalled.

Privatisation reversed many gains of the labour movement and virtually ruined the trade union movement, which had a strong presence in public sector establishments. The labour movement, which had received a huge boost in 1972, lost many unions and union memberships between 1990 and 2015.

Contract employment was introduced in both public and private sectors during Gen Zia’s regime. It became more of a norm after the large scale privatisation and liberalisation under the IMF conditions during the 1990s. The large scale induction of workers on short contracts and third-party contract basis has destroyed the trade unions and harmed collective bargaining in the country.

Besides corruption, a major allegation against Benazir Bhutto was politically motivated appointments in state enterprises like the PIA, the Steel Mills and Railways. Subsequent governments have removed a large number of workers using court orders. To her abiding credit, Benazir Bhutto did not cause widespread unemployment in the country. Instead, her governments provided employment in state owned establishments to a large number of workers.