Concept of Liquidity Trap

In this article we will discuss about the concept of liquidity trap, explained with the help of a suitable diagram.

Liquidity trap refers to a situation in which an increase in the money supply does not result in a fall in the interest rate but merely in an addition to idle balances: the interest elasticity of demand for money becomes infinite. Under normal conditions an increase in money supply, resulting in excess cash balances, would cause an increase in bond prices, as individuals sought to acquire assets in exchange for money, and a corresponding fall in interest rates.

In such a situation, described by Keynes as liquidity trap, individuals believe that bond prices are too high and will therefore fall, and correspondingly that interest rates are too low and must rise They, therefore, believe that to buy bonds would be to incur a capital loss and as a result they hold only money. This means that an increase in the money supply merely increases idle balances and leaves the interest rate unaffected.

Keynes pointed out that during depression when the rate of interest is very low, the demand curve for money (or the liquidity preference curve) becomes completely elastic (horizontal). The rate of interest has fallen enough. It cannot fall further.

The horizontal portion of the liquidity preference curve is referred to as the liquidity trap. In this portion of the curve, the demand for money is infinitely elastic with re­spect to the interest rate. Re­ductions in the interest rate, in this portion only, increases people’s desire to hold cash balances.

The implication here is that any attempt to achieve the internal expansion through increased investment brought about by lowering the interest rates would fall, because any increase in the money supply created in order to reduce the rate of interest would be held in the form of cash balances, making it impossible to use interest rates (monetary policy) to expand the economy. See Fig. 7 which describes such a situation.

Keynes pointed out that the actual rate of interest cannot fall to zero because the expected rate cannot fall to zero. People’s expectations play a very important role in altering the rate of interest. Individuals’ views on the level of bond prices may be summarised in terms of their views about the interest rate.

Keynes’ theory assumes that each individual has his own view about the long-run equilibrium interest rate and that there corresponds to this a critical rate below which are individual holds only money and above which he holds only bonds. Clearly, if everyone is holding money as each one is in the liquidity trap then the current interest rate must be below the lowest critical rate situation.

However, in practice, there is no statistical evidence to support the existence of a liquidity trap. Furthermore, while the hypothesis rests on the view that expectations are regressive it offers no theory of precisely how these are formed.

5 Factors that Affect the Economic Growth of a Country

The term economic growth is associated with economic progress and advancement.

Economic growth can be defined as an increase in the capacity of an economy to produce goods and services within a specific period of time.

In economics, economic growth refers to a long-term expansion in the productive potential of the economy to satisfy the wants of individuals in the society. Sustained economic growth of a country’ has a positive impact on the national income and level of employment, which further results in higher living standards.

Apart from this, it plays a vital role in stimulating government finances by enhancing tax revenues. This enables the government to earn extra income for the further development of an economy. The economic growth of a country can be measured by comparing the level of Gross National Product (GNP) of a year with the GNP of the previous year. The economic growth of a country is possible if strengths and weaknesses of the economy are properly analyzed.

Economic analysis provides an insight into the essentials of an economy. It is a systematic process for determining the optimum use of scarce resources and selecting the best alternative to achieve the economic goal. Moreover, economic analysis helps in assessing the causes of different economic problems, such as inflation, depression, and economic instability. It is performed by taking into consideration various economic variables, such as demand, supply, prices, production cost, wages, labor, and capital.

Meaning of Economic Growth:

Economic growth can be defined as a positive change in the level of goods and services produced by a country over a certain period of time. An important characteristic of economic growth is that it is never uniform or same in all sectors of an economy For example, in a particular year, the telecommunication sector of a country has marked a significant contribution in economic growth whereas the mining sector has not performed well as far as the economic growth of the country- is concerned.

Economic growth is directly related to percentage increase in GNP of a country. In real sense, economic growth is related to increase in per capita national output or net national product of a country that remain constant or sustained for many years.

Economic growth can be achieved when the rate of increase in total output is greater than the rate of increase in population of a country. For example, in 2005-2006, the rate of increase in India’s GNP was 9.1%, while its population growth rate was 1.7%.

In such a case, per capita increase in GNP would be 7.4% (=9.1-1.7). On the other hand, if the rate of increase in GNP and population is same then the actual growth of GNP would be zero, which implies that there is a decrease in per capita income.

As a result, there would be no economic growth. Therefore, in such a case, standard of living of people would not improve even when there is an increase in the total output of a country. However, such a growth is better than the stagnation of an economy.

The economic growth of a country may get hampered due to a number of factors, such as trade deficit and alterations in expenditures by governmental bodies. Generally, the economic growth of a country is adversely affected when there is a sharp rise in the prices of goods and services.

Following are some of the important factors that affect the economic growth of a country:

(a) Human Resource:

Refers to one of the most important determinant of economic growth of a country. The quality and quantity of available human resource can directly affect the growth of an economy.

The quality of human resource is dependent on its skills, creative abilities, training, and education. If the human resource of a country is well skilled and trained then the output would also be of high quality.

On the other hand, a shortage of skilled labor hampers the growth of an economy, whereas surplus of labor is of lesser significance to economic growth. Therefore, the human resources of a country should be adequate in number with required skills and abilities, so that economic growth can be achieved.

(b) Natural Resources:

Affect the economic growth of a country to a large extent. Natural resources involve resources that are produced by nature either on the land or beneath the land. The resources on land include plants, water resources and landscape.

The resources beneath the land or underground resources include oil, natural gas, metals, non-metals, and minerals. The natural resources of a country depend on the climatic and environmental conditions. Countries having plenty of natural resources enjoy good growth than countries with small amount of natural resources.

The efficient utilization or exploitation of natural resources depends on the skills and abilities of human resource, technology used and availability of funds. A country having skilled and educated workforce with rich natural resources takes the economy on the growth path.

The best examples of such economies are developed countries, such as United States, United Kingdom, Germany, and France. However, there are countries that have few natural resources, but high per capita income, such as Saudi Arabia, therefore, their economic growth is very high. Similarly, Japan has a small geographical area and few natural resources, but achieves high growth rate due to its efficient human resource and advanced technology.

(c) Capital Formation:

Involves land, building, machinery, power, transportation, and medium of communication. Producing and acquiring all these manmade products is termed as capital formation. Capital formation increases the availability of capital per worker, which further increases capital/labor ratio. Consequently, the productivity of labor increases, which ultimately results in the increase in output and growth of the economy.

(d) Technological Development:

Refers to one of the important factors that affect the growth of an economy. Technology involves application of scientific methods and production techniques. In other words, technology can be defined as nature and type of technical instruments used by a certain amount of labor.

Technological development helps in increasing productivity with the limited amount of resources. Countries that have worked in the field of technological development grow rapidly as compared to countries that have less focus on technological development. The selection of right technology also plays an role for the growth of an economy. On the contrary, an inappropriate technology- results in high cost of production.

(e) Social and Political Factors:

Play a crucial role in economic growth of a country. Social factors involve customs, traditions, values and beliefs, which contribute to the growth of an economy to a considerable extent.

For example, a society with conventional beliefs and superstitions resists the adoption of modern ways of living. In such a case, achieving becomes difficult. Apart from this, political factors, such as participation of government in formulating and implementing various policies, have a major part in economic growth.

9 Most Important Properties of Indifference Curves

(1) A higher indifference curves to the right of another represents a higher level of satisfaction and preferable combination of the two goods. In Figure 6, consider the indifference curves I₁ and I₂ and combination N and A respectively on them.

Since A is on a higher indifference curve and to the right of N, the consumer will be having more of both the goods X and Y that is, OX1 + OY1 in relation to OX + OY. Even if the two points on these curves are on the same plane as M and A, the consumer will prefer the latter combination, because he will be having more of good X though the quantity of good Y is the same.

(2) In between two indifference curves there can be a number of other indifference curves, one for every point in the space on the diagram.

(3) The numbers I1, I2, I3, I4,………… etc. given to indifference curves are absolutely arbitrary. Any numbers can be given to indifference curves. The numbers can be in the ascending order of 1, 2, 4, 6 or 2, 3, 1, 4 etc. Numbers have no importance in the indifference curve analysis.

(4) The slope of an indifference curve is negative, downward sloping, and from left to right. It means that the consumer to be indifferent to all the combinations on the indifference curves must leave less units of good Y in order to have more of good X. To prove this property, let us take indifference curves contrary to this assumption. In Figure 7 (A) combination B of OX1 + OY1 is preferable to combination A which has a smaller amount of the two goods. Therefore, the indifference curve cannot slope upward from left to right. It is not an iso-utility curve.

Similarly, in Figure 7 (B) combination B is preferable to combination A for combination B has more of X and the same quantity of Y. So the indifference curve cannot be horizontal. In Figure 7 (C) the indifference curve is shown as vertical and again combination B is preferred to A as the consumer has more of Y and the same quantity of X. Therefore, the indifference curve cannot be vertical either. Consequently, the indifference curve will be of negative slope as shown in Figure 7 (D) where A and B combinations give equal satisfaction to the consumer. As he moves from combination A to B he gives up less quantity of Y in order to have more of X.

(5) Indifference curves can neither touch nor intersect each other so that one indifference curve passes through only one point on an indifference map. What absurdity follows from such a situation can be shown with the help of Figure 8 (A) where the two curves I₁and I₂ cut each other. Point A on the I₁ curve indicates a higher level of satisfaction than point B on the I₂ curve, as it lies farther away from the origin. But point C which lies on both the curves yields the same level of satisfaction as points A and B. Thus

This is absurd because A is preferred to B, begin on a higher indifference curve I1. Since each indifference curve represents a different level of satisfaction, indifference curves can never inter­sect at any point. The same reasoning applies if two indifference curves touch each other at point С in Panel (B) of the figure.

(6) An indifference curve cannot touch either axis. If it touches X-axis as 7, in Figure 9 at M, the consumer will be having OM quantity of good X and none of Y. Similarly, if an in difference curve I2touches the У-axis at L the consumer will have only OL of Y good and no amount of X. Such curves are in contradiction to the as­sumption that the consumer buys two goods in combinations.

(7) An important property of indifference curves is that they are convex to the origin. The convexity rule implies that as the consumer substitutes X for Y the marginal rate of substitution diminishes. It means that as the amount X is increased by equal amounts that of Y diminish by smaller amounts. The slope of the curve becomes smaller as we move to the right. To prove this, let us take a concave curve where the marginal rate of substitution of X for Y increases instead of diminishing, i.e., more of Y is given up to have additional units of X. As in Figure 10 (A) the consumer is giving up ab< cd< ef units of Y for be = de =fg units of X. But the indifference curve cannot be concave to the origin.

If we take a straight line indifference curve at an angle of 45° with either axis, the marginal rate of substitution between the two goods will be constant, as in Panel (B) where ab of Y = be of X and cd of Y = de of X. Thus an indifference curve cannot be a straight line.

Figure 10 (C) shows the indifference curve as convex to the origin.

Here the consumer is giving up less and less units of Y in order to have equal additional units of X, i.e., ab> cd> ef of Y for be = de — fg of X. Thus an indifference curve is always convex to the origin because the marginal rate of substitution between the two goods declines.

(8) Indifference curves are not necessarily parallel to each other. Though they are falling, negatively inclined to the right, yet the rate of fall will not be the same for all indifference curves. In other words, the dimin­ishing marginal rate of substitution between the two goods is essentially not the same in the case of all indifference schedules. The two curves I1and I2 shown in figure 11 are not parallel to each other.

(9) In reality indifference curves are like bangles. But as a matter of principle their ‘effective region’ in the form of segments is shown in Figure 12. This is so because indifference curves are assumed to be negatively sloping and convex to the origin. An individual can move to higher indifference curves I1and I2 until he reaches the saturation point 5 where his total utility is the maxi­mum.

If the consumer increases his consumption more than OX or OY, his total utility will fall. If he increases his consumption of X so as to reach the dotted portion of the I₁ curve horizontally from point S to N he gets negative utility. If to compensate himself for this loss of utility, he increases the consumption of Y, he may be again on the dotted portion of the curve, vertically from point S to M. Thus the consumer may be on the concave portion of the circular curve. Since by moving to the dotted portion he gets negative utility, the effective region of the circular curve will be the convex portion.

MA EXTERNAL: KARACHI UNIVERSITY, REGISTRATION AND EXAM FORMS

Labour: Meaning and Characteristics | Economics

Labour includes both physical and mental work undertaken for some monetary reward. In this way, workers working in factories, services of doctors, advocates, ministers, officers and teachers are all included in labour.

Any physical or mental work which is not undertaken for getting income, but simply to attain pleasure or happiness, is not labour.

For example, the work of a gardener in the garden is called labour, because he gets income for it. But if the same work is done by him in his home garden, it will not be called labour, as he is not paid for that work. So, if a mother brings up her children, a teacher teaches his son and a doctor treats his wife, these activities are not considered ‘labour’ in economics. It is so because these are not done to earn income. According to S.E. Thomas, “Labour connotes all human efforts of body or mind which are undertaken in the expectation of reward.”

Characteristics of Labour:

Labour has the following peculiarities which are explained as under:

1. Labour is Perishable:

Labour is more perishable than other factors of production. It means labour cannot be stored. The labour of an unemployed worker is lost forever for that day when he does not work. Labour can neither be postponed nor accumulated for the next day. It will perish. Once time is lost, it is lost forever.

2. Labour cannot be separated from the Labourer:

Land and capital can be separated from their owner, but labour cannot he separated from a labourer. Labour and labourer are indispensable for each other. For example, it is not possible to bring the ability of a teacher to teach in the school, leaving the teacher at home. The labour of a teacher can work only if he himself is present in the class. Therefore, labour and labourer cannot be separated from each other.

3. Less Mobility of Labour:

As compared to capital and other goods, labour is less mobile. Capital can be easily transported from one place to other, but labour cannot be transported easily from its present place to other places. A labourer is not ready to go too far off places leaving his native place. Therefore, labour has less mobility.

4. Weak Bargaining Power of Labour:

The ability of the buyer to purchase goods at the lowest price and the ability of the seller to sell his goods at the highest possible price is called the bargaining power. A labourer sells his labour for wages and an employer purchases labour by paying wages. Labourers have a very weak bargaining power, because their labour cannot be stored and they are poor, ignorant and less organised.

Moreover, labour as a class does not have reserves to fall back upon when either there is no work or the wage rate is so low that it is not worth working. Poor labourers have to work for their subsistence. Therefore, the labourers have a weak bargaining power as compared to the employers.

5. Inelastic Supply of labour:

The supply of labour is inelastic in a country at a particular time. It means their supply can neither be increased nor decreased if the need demands so. For example, if a country has a scarcity of a particular type of workers, their supply cannot be increased within a day, month or year. Labourers cannot be ‘made to order’ like other goods.

The supply of labour can be increased to a limited extent by importing labour from other countries in the short period. The supply of labour depends upon the size of population. Population cannot be increased or decreased quickly. Therefore, the supply of labour is inelastic to a great extent. It cannot be increased or decreased immediately.

6. Labourer is a Human being and not a Machine:

Every labourer has his own tastes, habits and feelings. Therefore, labourers cannot be made to work like machines. Labourers cannot work round the clock like machines. After continuous work for a few hours, leisure is essential for them.

7. A Labourer sells his Labour and not Himself:

A labourer sells his labour for wages and not himself. ‘The worker sells work but he himself remains his own property’. For example, when we purchase an animal, we become owners of the services as well as the body of that animal. But we cannot become the owner of a labourer in this sense.

8. Increase in Wages may reduce the Supply of Labour:

The supply of goods increases, when their prices increase, but the supply of labourers decreases, when their wages are increased. For example, when wages are low, all men, women and children in a labourer’s family have to work to earn their livelihood. But when wage rates are increased, the labourer may work alone and his wife and children may stop working. In this way, the increase in wage rates decreases the supply of labourers. Labourers also work for less hours when they are paid more and hence again their supply decreases.

9. Labour is both the Beginning and the End of Production:

The presence of land and capital alone cannot make production. Production can be started only with the help of labour. It means labour is the beginning of production. Goods are produced to satisfy human wants. When we consume them, production comes to an end. Therefore, labour is both the beginning and the end of production.

10. Differences in the Efficiency of Labour:

Labourer differs in efficiency. Some labourers are more efficient due to their ability, training and skill, whereas others are less efficient on account of their illiteracy, ignorance, etc.

11. Indirect Demand for Labour:

The consumer goods like bread, vegetables, fruit, milk, etc. have direct demand as they satisfy our wants directly. But the demand for labourers is not direct, it is indirect. They are demanded so as to produce other goods, which satisfy our wants. So the demand for labourers depends upon the demand for goods which they help to produce. Therefore, the demand for labourers arises because of their productive capacity to produce other goods.

12. Difficult to find out the Cost of Production of Labour:

We can easily calculate the cost of production of a machine. But it is not easy to calculate the cost of production of a labourer i.e., of an advocate, teacher, doctor, etc. If a person becomes an engineer at the age of twenty, it is difficult to find out the total cost on his education, food, clothes, etc. Therefore, it is difficult to calculate the cost of production of a labourer.

13. Labour creates Capital:

Capital, which is considered as a separate factor of production is, in fact, the result of the reward for labour. Labour earns wealth by way of production. We know that capital is that portion of wealth which is used to earn income. Therefore, capital is formulated and accumulated by labour. It is evident that labour is more important in the process of production than capital because capital is the result of the working of labour.

14. Labour is an Active Factor of Production:

Land and capital are considered as the passive factors of production, because they alone cannot start the production process. Production from land and capital starts only when a man makes efforts. Production begins with the active participation of man. Therefore, labour is an active factor of production.

Labour Policy, 1972, Pakistan

The fourth labour policy was announced in 1972 by the then ruling Pakistan People’s Party (PPP) government. The PPP was elected on a socialist agenda with a definite “pro-labour” manifesto. The Labour Policy of 1972 had three important dimensions: a) immediate increase in workers’ real wages; b) increased production; and c) promotion of trade unionism and amelioration of the workers’ lot. It included 22 specific points:

1. Workers’ participation in the management of industry;

2. Appointment of auditors by the collective bargaining agent. The auditors were to be paid by employers to audit their company accounts in certain cases;

3. Increase in workers’ share in profits from 2.5 per cent to 4 per cent (and later to 5 per cent) under the Companies’ Profits (Workers’ Participation) Act, 1968;

4. Nomination or election of ‘shop stewards’ in each factory department to take care of workers’ day to day problems;

5. Labour court decisions in 20 days for individual cases;

6. Settlement of disputes through works councils; the councils were to deal with all matters that would go before the labour courts;

7. Both workers or employers permitted to take matters to the labour courts,

8. Curtailment of strike and lockout notice periods from 21 days to 14 days. Strikes, however, linked with a prior secret ballot;

9. Lower supervisory levels in banks included in the definition of ‘workman’;

10. Statement of reasons for termination of services of a worker;

11. Provision of statutory bonus of up to one month’s wages and linked with profits;

12. Payments under the Wages Act, 1936, and the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, made applicable to all contractors;

13. Provision of funds for workers’ housing through the Workers’ Welfare Fund Ordinance, 1971, and representation for workers;

14. Free education up to matriculation for one child per worker by the employer;

15. Workers’ 2 per cent social security scheme contribution dropped, employers’ contribution raised from 4 per cent to 6 per cent;

16. Introduction of old age pension for workers;

17. Compulsory group insurance against death and injury for off-duty workers;

18. Extension of social security to domestic servants;

19. Revision of laws governing safety measures and workmen’s compensation against death and injury;

20. Introduction of a group incentive scheme;

21. Creating a quasi-judicial body – the National Industrial Relations Commission

(NIRC) – to promote genuine trade unionism, help form unions and federations (at the industry and national levels), and to deal with cases of victimization and unfair labour practices; and

22. Eventual linking of wages to prices, but no immediate increase in cash wages.

As a follow-up to the policy, specific measures taken related to: a) amendments in the

Industrial Relations Ordinance, 1969, and the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968; b) enactment of the Workers’ Children (Education) Ordinance, 1972; c) enactment of the Employees’ Old-Age Benefits Act, 1976; and d) enactment of the Employees’ Cost of Living (Relief) Act, 1973.

Furthermore, restrictions on trade union registration were removed, thus encouraging more trade unions.

PAKISTAN: INDUSTRIAL RELATIONS ORDINANCE. 1969 as amended to 1997

Preliminary

• 1. Short title, extent, application and commencement.
• 2. Definitions.
• 3. Trade unions and freedom of association.
• 4. Adherence to the law of the land.
• 5. Application for registration.
• 6. Requirements for application.
• 7. Requirements for registration.
• 7A. Disqualifications for being an officer of a trade union.
• 7B. Registered trade union to maintain register, etc.
• 8. Registration.
• 8-A. Transfer, etc. of officer of the trade union during pendency of
• application for registration.
• 9. Certificate of registration.
• 10. Cancellation of registration.
• 11. Appeal against cancellation.
• 12. Registrar of Trade Unions.
• 13. Powers and functions of Registrar.
• 14. Incorporation of registered Trade Union.
• 15. Unfair labour practices on the part of employers.
• 16. Unfair labour practices on the part of workmen.

Rights and Privileges of registered trade unions and Collective Bargaining Agents

• 17. Law of conspiracy limited in application.
• 18. Immunity from civil suit in certain cases.
• 19. Enforce ability of agreement.
• 20. Registration of Federation of Trade Unions.
• 21. Returns.
• 22. Collective bargaining agent.
• 22A. National Industrial Relations Commission.
• 22B. Benches of the Commission, etc.
• 22C. Additional powers of the Commission.
• 22D. Appeals.
• 22E. Finality of order.
• 22EE. Determination, etc. of collective bargaining unit.
• 22F. Power to make regulations.
• 23. Check-off.
• 23A. Shop Stewards to act as link between labour and management.
• 23B. Workers' participation in management.
• 23C. Joint Management Board.
• 23D. Inspector.
• 23E. Penalty for obstructing Inspector.
• 23F. Penalty for contravening section 23B or 23C, etc.

Joint Consultation, Conciliation and Mediation

• 24. Works Councils.
• 25. Functions of Works Council.
• 25A. Redress of individual grievances.
• 26. Negotiations relating to differences and disputes.
• 27. Conciliator.
• 28. Notice of strike or lock-out.
• 29. Conciliation after notice of strike or lock-out.
• 30. Proceedings before Conciliator.
• 31. Arbitration.
• 32. Strike and lock-out.
• 33. Strike or lock-out in public utility services.
• 34. Application to Labour Court.
• 34A. Raising of industrial dispute by a federation.
• 35. Labour Court.
• 36. Procedure and powers of Labour Court.
• 36A,36B, 36C, 36D, 36E, 36F - Omitted.
• 37. Awards and decisions of Labour Court.
• 38. Labour Appellate Tribunal.
• 38A. Wage Commission.
• 38B. Fixation of wages, etc.
• 38C. Publication, etc. of the decision of the Wage Commission.
• 38D. Decision of Wage Commission to be deemed to be an award of the Commission.
• 38E. Special powers of the Commission.
• 38 F. Powers and procedure of the Wage Commission.
• 38G. Decision of the Wage Commission to be binding on all employers.
• 38H. Powers of Wage Commission to fix interim rates of wages, etc.
• 381. Effect of laws and agreements inconsistent with sections 38A, 38B, 38C, 38D, 38E, 38F, 38G and 38H.
• 39. Settlement and awards on whom binding.
• 40. Effective date of settlement, award, etc.
• 41. Commencement and conclusion of proceedings.
• 42. Certain matters to be kept confidential.
• 43. Raising of industrial disputes.
• 44. Prohibition on serving notice of strike or lockout while proceedings pending.
• 45. Powers of Labour Court and Tribunal to prohibit strike.
• 46. Illegal strikes and lock-outs.
• 46A. Procedure in cases of illegal strikes or lock-outs.
• 47. Conditions of service to remain unchanged while proceedings pending.
• 47A. Removal of fixed assets.
• 48. Protection of certain persons.
• 49. Representation of parties.
• 50. Interpretation of settlements and awards.
• 51. Recovery of money due from an employer under a settlement or award.
• 52. Performance of functions till collective bargaining agent ascertained.

Penalties and Procedure

• 53. Penalty for unfair labour practices.
• 54. Penalty for committing breach of settlement.
• 55. Penalty for failing to implement settlement.
• 56. Penalty for false statement, etc.
• 57. 58, 59 omitted.
• 60. Penalty for discharging officer of trade union in certain circumstances, etc.
• 61. Penalty for embezzlement or misappropriation of funds.
• 62. Penalty for other offences.
• 62A. Offences to be non-cognizable.
• 63. Offences by Corporations.
• 64. Trial of offences.

Miscellaneous

• 65. Indemnity.
• 65A. Registrar etc. to be public servants.
• 65B. Limitation.
• 66. Powers to make rules.
• 67. Repeal and savings.

Schedule

---

An Ordinance to amend and consolidate the law relating to the formation of trade unions, the regulation of relations between employers and workmen and the avoidance and settlements of any differences or disputes arising between them.
Whereas it is expedient to amend and consolidate the law relating to the formation of trade unions, the regulation of relations between employers and workmen and the avoidance and settlement of any differences or disputes arising between them or matters connected therewith and ancillary thereto;
And whereas the national interest of Pakistan in relation to the achievement of uniformity requires Federal legislation in the matter;
Now, therefore, in pursuance of the Proclamation of the 25th day of March, 1979, read with the Provisional Constitution Order, 1969 and in exercise of all powers enabling him in that behalf the President is pleased to make and promulgate the following Ordinance : -

PRELIMINARY

1. Short title, extent, application and commencement. -
(1) This Ordinance may be called the Industrial Relations Ordinance, 1969.
(2) It extends to the whole of Pakistan.
(3) It shall not apply to any person employed -

• (a) in the Police or any of the Defence Services of Pakistan or any services or installations connected with or incidental to the Armed Forces of Pakistan including an Ordnance Factory maintained by the Federal Government; or
• (b) in the administration of the State other than those employed as workmen by the Railway, Posts, Telegraph and Telephone Departments; or
• (c) as a member of the Security Staff of the Pakistan International Airlines Corporation, or drawing wages in such pay group, not lower than group V, in the establishment of that Corporation as the Federal Government may, in the public interest in the interest of security of the Airlines, by notification in the Official Gazette, specify in this behalf; or
• (d) by the Pakistan Television Corporation or the Pakistan Broadcasting Corporation; or
• (e) by the Pakistan Security Printing Corporation or the Security Papers Limited; or
• (f) by an establishment maintained for the treatment or care of sick, infirm, destitute as mentally unfit persons; or
• (g) as a member of the Watch and Ward, Security or Fire Service Staff of an oil refinery; or
• (h) as a member of the Security or Fire Service staff of an establishment engaged in the production, transmission or distribution of natural gas or liquid petroleum gas.

(3-A) Without prejudice to the provisions of sub-section (3), for a period of sixty days from the commencement of the industrial Relations (Amendment) Act, 1976, this Ordinance shall not apply to any person employed in the establishment of the Pakistan International Airlines Corporation.
(4) It shall come into force at once.
2. Definitions. - In this Ordinance, unless there is anything repugnant in the subject or context -

• (i) "Arbitrator" means a person appointed as such under this Ordinance.
• (ii) "Award" means the determination by a Labour Court, Arbitrator or Appellate Tribunal of any industrial dispute or any matter relating thereto and includes an interim award.
• (iii) omitted.
• (iv) omitted.
• (v) "Collective bargaining agent", in relation to an establishment or industry, means the trade union of workmen which, under section 22, is the agent of the workmen in the establishment or, as the case may be, industry, in the matter of collective bargaining.
• (va) "Collective bargaining unit" means those workers or class of workers of an employer in one or more establishments falling within the same class of industry whose terms and conditions of employment are, or could appropriately be, the subject of collective bargaining together ;
• (vaa) "Commission" means the National Industrial Relations Commission constituted under section 22A;
• (vi) "Conciliation proceedings" means any proceedings before a conciliator.
• (vii) "Conciliator" means. -
  • (a) in respect of disputes which the National Industrial Relations Commission is competent to adjudicate and determine, a person appointed as such under sub-section (2) of section 27; and
  • (b) in respect of other disputes, a person appointed as such under sub-section (1) of that section;
• (viii) "Employer" in relation to an establishment means any person or body of persons, whether incorporated or not, who or which employ workmen in the establishment under a contract of employment and includes -
  • (a) an heir, successor or assign as the case may be, of such person or body as aforesaid;
  • (b) any person responsible for the management, supervision and control of the establishment;
  • (c) in relation to an establishment run by or under the authority of any department of the Federal Government or Provincial Government, the authority appointed in this behalf or, where no authority is appointed, the Head of the Department;
  • (d) in relation to an establishment run by or on behalf of a local authority, the officer appointed in this behalf or where no officer is so appointed, the chief executive officer of that authority;
    Special Provision - For the purpose of distinction from the category of "worker or workmen" officers and employees of a department of the Federal Government or a Provincial Government or a local authority, who belong to the superior, managerial, secretarial directorial, supervisory or agency staff and who have been notified for this purpose in the official Gazette shall be deemed to fall within the category of employers.
  • (e) in relation to any other establishment the proprietor of such establishment and every director, manager, secretary, agent or officer or person concerned with the management of the affairs thereof;
• (ix) "Establishment" means any office, firm, industrial unit, undertaking, shop or premises in which workmen are employed for the purpose of carrying on any industry; and, except in section 22EE, includes a collective bargaining unit, if any, constituted under that section in any establishment or group of establishments;
• (x) "Executive" means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted by its constitution;
• (xi) "Illegal lock-out" means a lock-out declared, commenced or continued otherwise than in accordance with the provisions of this Ordinance;
• (xii) "Illegal strike" means a strike declared, commenced or continued otherwise than in accordance with the provisions of this Ordinance;
• (xiii) "Industrial dispute" means any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen, which is concerned, with the employment or non-employment or the terms of employment or the conditions of work of any person; and is not in respect of the enforcement of any right guaranteed or secured to him by or under any law, other than this Ordinance, or any award or settlement for the time being in force;
• (xiv) "Industry" means any business, trade, manufacture, calling, service, employment or occupation;
• (xiva) "Inspector" means inspector under this Act
• (xv) "Labour Court" means a Labour Court established under section 35;
• (xvi) "Lock-out" means the closing of a place of employment or part of such place or the suspension, wholly or partly, of work by an employer, or refusal, absolute or conditional, by an employer to continue to employ any number of workmen employed by him where such closing, suspension or refusal occurs in connection with an industrial dispute or is intended for the purpose of compelling workmen employed to accept certain terms and conditions of or affecting employment;
• (xvii) "Organisation" means any organisation of workers or of employers for furthering and defending the interests of workers or of employers;
• (xviii) "Officer" in relation to a trade union means any member of the executive thereof but does not include an auditor or legal adviser;
• (xix) "Prescribed" means prescribed by rules;
• (xx) "Public utility service" means any of the services specified in the Schedule;
• (xxi) "Registered trade union" means a trade union registered under this Ordinance;
• (xxii) "Registrar" means Registrar of Trade Unions appointed under section 12;
• (xxiii) "Rule" means rule made under section 66;
• (xxiv) "Settlement" means a settlement arrived at in the course of conciliation proceeding, and includes an agreement between an employer and his workmen arrived at otherwise than in the course of any conciliation proceeding, where such agreement is in writing, has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to the Provincial Government, the conciliator and such other person as may be prescribed;
• (xxv) "Strike" means cessation of work by a body of persons employed in any establishment acting in combination or a concerted refusal or refusal under a common understanding of any number of persons who so employed to continue to work or to accept employment;
• (xxvi) "Trade union" means any combination of workmen or employers formed primarily for the purpose of regulating the relations between workmen and employers or workmen and workmen or employers and employers or for imposing restrictive conditions on the conduct of any trade or business and includes a federation of two or more trade unions;
• (xxvii) "Tribunal" means a Labour Appellate Tribunal constituted under section 38 of this Ordinance;
• (ixxviia) "Wage Commission" means a Wage Commission constituted under section 38A;
• (xxviii) "Worker" and "workman" means any person not falling within the definition of employer who is employed (including employment as a supervisor or as an Apprentice) in an establishment or industry for hire of reward either directly or through a contractor whether the terms of employment be express or implied, and for the purpose of any proceeding under this Ordinance in relation to an industrial dispute includes a person who has been dismissed, discharged, retrenched, laid-off or otherwise removed from employment in connection with or as a consequence of that dispute or whose dismissal, discharge, retrenchment, lay-off, or removal has led to that dispute, but does not include any person -
  • (a) who is employed mainly in a managerial or administrative capacity, or
  • (b) who, being employed in a supervisory capacity draws wages exceeding rupees eight hundred per mensem or performs, either because of the nature of duties attached to the office or by reason of the powers vested in him, functions mainly of managerial nature.

3. Trade unions and freedom of association. - Subject to the provisions contained in this Ordinance -

• (a) workers, without distinction whatsoever, shall have the right to establish and, subject only to the rules of the organisation concerned, to join associations of their own choosing without previous authorisation;
  Provided that no worker shall be entitled to be a member of more than one trade union at any one time;
• (b) employers, without distinction whatsoever, shall have the right to establish and, subject only to the rules of the organisation concerned, to join associations of their own choosing without previous authorisation;
• (c) trade unions and employers' associations shall have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organise their administration and activities and to formulate their programmes;
• (d) workers' and employers' organisations shall have the right to establish and join federations and confederations and any such organisation, federation or confederation shall have the right to affiliate with international organisations and confederations of workers' and employers' organisations.

4. Adherence to the law of the land. - Workers and employers and their respective organisations, in exercising the rights provided for in section 3, like other persons or organised collectives, shall respect the law of the land.
5. Application for registration. - Any trade union may, under the signature of its president and the secretary apply for registration of the trade union under this Ordinance.
6. Requirements for application. - Every application for registration of a trade union shall be made to the Registrar and shall be accompanied by -

• (a) A statement showing -
• (i) the name of the trade union and the address of its head office ;
• (ii) date of formation of the union ;
• (iii) the titles, names, ages, addresses and occupations of the officers of the trade union;
• (iv) statement of total paid membership;
• (iva) the name of the establishment, or group of establishments, of the industry, as the case may be, to which the trade union relates along with a statement of the total number of workers employed therein.
• (ivb) the names and addresses of the registered trade unions in the establishment, group of establishments or industry, as the case may be, to which the union relates;
• (v) in case of federation of trade unions, the names, addresses and registration number of member-unions.
• (b) Three copies of the constitution of the trade union together with a copy of the resolution by the members of the trade union adopting such constitution bearing the signature of the chairman of the meeting;
• (c) A copy of the resolution by the members of the trade union authorising its president and the secretary to apply for its registration ; and
• (d) in case of a federation of trade unions, a copy of the resolution from each of the constituent unions agreeing to become a member of the federation.

7. Requirements for registration. -
(1) A trade union shall not be entitled to registration under this Ordinance unless the constitution thereof provides for the following matters, namely : -

• (a) the name and address of the trade union.
• (b) the objects for which the trade union has been formed;
• (c) the purposes for which the general funds of the union shall be applicable;
• (d) the number of persons forming the executive which shall not exceed the prescribed limit and shall include not less than seventy five per cent from amongst the workmen actually engaged or employed in the establishment or establishments or the industry from which the trade union has been formed;
• (e) the conditions under which a member shall be entitled to any benefit assured by the constitution of the trade union and under which any fine or forfeiture may be imposed on him;
• (f) the maintenance of a list of the members of the trade union and of adequate facilities for the inspection thereof by the officers and members of the trade union;
• (g) the manner in which the constitution shall be amended, varied or rescinded;
• (h) the safe custody of the funds of the trade union, its annual audit, the manner of audit and adequate facilities for inspection of the account books by the officers and members of trade union;
• (i) the manner in which the trade union may be dissolved;
• (j) the manner of election of officers by the general body of the trade union and the term, not exceeding two years, for which an officer may hold office upon his election or re-election;
• (k) the procedure for expressing want of confidence in any officer of the trade union; and
• (l) the meeting of the executive and of the general body of the trade union, so that the executive shall meet at least once in every three months and the general body at least once every year.

(2) Without prejudice to the provisions of sub-section (1), a trade union of workmen shall not be entitled to registration under this Ordinance -

• (a) unless all its members are workmen actually engaged or employed in the industry with which the trade union is connected ; and
• (b) where there are two or more registered trade unions in the establishment, group of establishments or industry with which the trade union is connected, unless it has as its members not less than one-fifth of the total number of workmen employed in such establishment, group of establishments or industry, as the case may be.

7 A. Disqualification for being an officer of a trade union. - Notwithstanding anything containing in the constitution or rules of a trade union, a person who has been convicted of an offence under section 61 shall be disqualified from being elected as, or from being, an officer of a trade union.
7B. Registered trade union to maintain register, etc. - Every registered trade union shall maintain in such form as may be prescribed

• (a) a register of members showing particulars of subscriptions paid by each member;
• (b) an accounts book showing receipt and expenditure; and
• (c) a minute book for recording the proceedings of meetings.

8. Registration. -
(1) The Registrar, on being satisfied that the trade union has complied with all the requirements of this Ordinance, shall register the trade union in a prescribed register and issue a registration certificate in the prescribed form within a period of fifteen days from the date of receipt of the application. In case the application is found by the Registrar to be deficient in a material respect or respects he shall communicate in writing his objections to the trade union within a period of 15 days from the receipt of the application and the trade union shall reply thereto within a period of fifteen days from the receipt of the objections.
(2) When the objections raised by the Registrar have been satisfactorily met, the Registrar shall register the trade union as provided in sub-section (1) and issue a certificate of registration in the prescribed form, within three days of the date of the objections having been so met. In case the objections are not satisfactorily met, the Registrar may reject the application.
(3) In case the application has been rejected or the Registrar has delayed disposal of the application beyond the period of fifteen days provided in sub-section (1) or has not issued a certificate of registration within a period of three days as provided in sub-section (2), as the case may be, the trade union may appeal to the Labour Court who for reasons to be stated in its judgment, may pass an order directing the Registrar to register the trade union and to issue a certificate of registration or may dismiss the appeal.
(4) Notwithstanding anything contained in any other provision of this Ordinance, every alteration made in the constitution of a registered trade union and every change of its officers shall be notified by registered post by the trade union to the registrar within fifteen days of such change.
(5) The registrar may refuse to register such change or alteration if it is in contravention of any of the provisions of this Ordinance, or if it is in violation of the constitution of the trade union.
(6) Subject to the provisions of sub-section (3), every inclusion or exclusion of any constituent unit of a federation of trade unions shall be notified by registered post by the federation to the Registrar within fifteen days of such inclusion or exclusion.
(7) In case there is a dispute in relation to the change of officers of a trade union, or any trade unions aggrieved by the refusal of the Registrar under sub-section(5) any officer or member of the trade union may apply or appeal to the labour court, who shall within seven days of receipt of the application or appeal, as the case may be, pass an order either directing the registrar to register the change or alteration in the constitution or in the officers of the trade union or may, for reasons to be recorded in writing, direct the Registrar to hold fresh elections of the union under his supervision.
8 A. Transfer, etc., of officer of trade union during pendency of application for registration. - Save with the prior permission of the Registrar, no officer of a trade union or workman shall be transferred, discharged, dismissed or otherwise punished during the pendency of an application for registration of the trade union with the Registrar, provided that the union has notified the names of the officers to the employer in writing.
9. Certificate of registration. - The Registrar, on registering a trade union under section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that the trade union has been duly registered under this Ordinance.
10. Cancellation of registration. -
(1) The registration of a trade union shall be cancelled if the Labour Court so directs upon a complaint in writing made by the Registrar that the trade union has -
(i) contravened or has been registered in contravention of, any of the provisions of this Ordinance or the rules; or
(ii) contravened any of the provisions of its constitution ; or
(iii) made in its constitution any provision which is inconsistent with this Ordinance or the rules.
(2) Where any person who is disqualified under section 7-A from being elected as, or from being, an officer of a trade union is elected as an officer of a registered trade union, the registration of that union shall be cancelled if the Labour Court, upon a complaint in writing made in this behalf by the Registrar, so directs.
(3) The registration of a trade union shall be cancelled by the Registrar if, after holding such inquiry as he deems fit, he finds that such trade union has dissolved itself or has ceased to exist.
11. Appeal against cancellation. - Any trade union aggrieved by a decision given -
(a) by the Labour Court under sub-section (1) or sub-section (2) of section 10, may appeal to the Tribunal, or
(b) by the Registrar under sub-section (3) of section 10, may appeal to the Labour Court.
12. Registrar of trade unions. - For the purpose of this Ordinance the Provincial Government may, by notification in the official Gazette, appoint as many persons as it considers necessary to be Registrars of trade unions and where it appoints more than one Registrar, shall specify in the notification the area within which each one of them shall exercise and perform the powers and functions under this Ordinance.
13. Powers and functions of Registrar. - The following shall be the powers and functions of the Registrar : -

• (a) the registration of trade unions under this Ordinance and the maintenance of a register for this purpose;
• (b) to lodge, or authorise any person to lodge, complaints with the Labour Court or Commission for action, including prosecution, against trade unions, employers, workers or other persons for any alleged offence or any unfair labour practice or violation of any provision of this Ordinance or for expending the funds of a trade union in contravention of the provisions of its constitution;
• (c) the determination of the question as to which one of the trade unions in an establishment or an industry is entitled to be certified as the collective bargaining agent in relation to that establishment or industry,
• (cc) to inspect the accounts and records of the registered trade unions, or investigate or bold such inquiry as he deems fit, either himself or through any officer subordinate to, and authorised in writing in this behalf by him; and
• (d) such other powers and functions as may be prescribed.

14. Incorporation of registered trade union. -
(1) Every registered trade union shall be a body corporate by the name under which it is registered, shall have perpetual succession and a common seal and the power to contract and to acquire, hold and dispose of property, both, movable and immovable and shall by the said name sue or be sued.
(2) The Societies Registration Act, 1860, (XXI of 1860), the Co-operative Societies Act, 1912(11 of 1912) and the Companies Act, 1913 (VII of 1913), shall not apply to any registered trade union and the registration of any trade union under any of these Acts shall be void.
15. Unfair labour practices on the part of employers. -
(1) No employer or trade union of employers and no person acting on behalf of either shall -

• (a) impose any condition in a contract of employment seeking to restrain the right of a person who is a party to such contract to join a trade union or continue his membership of a trade union, or
• (b) refuse to employ or refuse to continue to employ any person on the ground that such person is or is not, a member or officer of a trade union, or
• (c) discriminate against any person in regard to any employment, promotion, condition of employment or working condition on the ground that such person is or is not, a member or officer of a trade union, or
• (d) dismiss, discharge, remove from employment or transfer or threaten to dismiss, discharge or remove from employment or transfer a workman or injure or threaten to injure him in respect of his employment by reason that the workman -
  • (i) is or proposes to become, or seeks to persuade any other person to become, a member or officer of a trade union, or
  • (ii) participates in the promotion, formation or activities of a trade union.
• (c) induce any person to refrain from becoming, or to cease to be a member or officer of a trade union, by conferring or offering to confer any advantage on, or by procuring or offering to procure any advantage for such person or any other person.
• (f) compel or attempt to compel any officer of the collective bargaining agent to arrive at a settlement by using intimidation, coercion, pressure, threat, confinement to a place, physical injury, disconnection of water, power and telephone facilities and such other methods,
• (g) interfere with or any way influence the balloting provided for in section 22 or
• (h) recruit any new workman during the period of a notice of strike under section 28 or during the currency of a strike which is not illegal except where the Conciliator, has, being satisfied that complete cessation of work is likely to cause serious damage to the machinery or installation, permitted temporary employment of a limited number of workmen in the section where the damage is likely to occur;
• (i) close down the whole of the establishment in contravention of Standing Order 11A of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (West Pakistan Ordinance No. VI of 1968); or
• (j) commence, continue, instigate or incite others to take part in, or expend or supply money or otherwise act in furtherance or support of an illegal lock-out.

(2) Nothing in sub-section (1) shall be deemed to preclude an employer from requiring that a person upon his appointment or promotion to managerial position shall cease to be, and shall be disqualified from being a member or officer of a trade union of workmen.
16. Unfair labour practices on the part of workmen. -
(1) No workman or other person or trade union of workmen shall -

• (a) persuade a workman to join or refrain from joining a trade union during working hours, or
• (b) intimidate any person to become, or refrain from becoming, or to continue to be or to cease to be a member or officer of a trade union, or
• (c) induce any person to refrain from becoming, or cease to be a member or officer of a trade union by intimidating or conferring or offering to confer any advantage on or by procuring or offering to procure any advantage for such person or any other person, or
• (d) compel or attempt to compel the employer to accept any demand by using intimidation, coercion, pressure, threat, confinement to, or ouster from a place, dispossession, assault, physical injury, disconnection of telephone, water or power facilities or such other methods.
• (e) commence, continue, instigate or incite others to take part in or expend or supply money or otherwise act in furtherance or support of an illegal strike or a go-slow.

Explanation. - In this clause, go-slow means an organized, deliberate and purposeful slowing down of normal output or the deterioration of the normal quality of work by a body of workmen acting in a concerted manner, but does not include the slowing down of normal output or the deterioration of the normal quality, or work which is due to mechanical defect, break-down of machinery, failure or defect in power supply or in the supply of normal materials and spare parts of machinery.
(2) It shall be an unfair practice for a trade union to interfere with a ballot held under section 22 by the exercise of undue influence, intimidation, impersonation or bribery through its executive or through any person acting on its behalf.

RIGHTS AND PRIVILEGES OF REGISTERED TRADE UNIONS AND COLLECTIVE BARGAINING AGENTS.

17. Law of conspiracy limited in application. - No officer or member of a registered trade union or collective bargaining agent as certified by the Registrar shall be liable to punishment under sub-section (2) of section 120-B of the Pakistan Penal Code (Act XVL of 1860), in respect of any agreement made between the members thereof for the purpose of furthering any such object of the trade union as is specified in its constitution referred to in section 7, unless the agreement is an agreement to commit an off face, or otherwise to violate any law other than this Ordinance.
18. Immunity from civil suit in certain cases. -
(1) No suit or other legal proceedings shall be maintainable in any civil court against any registered trade union or collective bargaining agent or any officer or member thereof in respect of any action done in contemplation or furtherance of an industrial dispute to which the trade union is a party on the ground only that such act induces some other person to break a contract of employment or that it is an interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital or his labour as he wills.
(2) A trade union shall not be liable in any suit or other legal proceedings in any civil court in respect of any tortuous act done in contemplation or furtherance of an industrial dispute by an agent of the trade union if it is proved that such person acted without the knowledge of, or contrary to express instructions given by the executive of the trade union.
19. Enforceability of agreement. - Notwithstanding anything contained in any other law for the time being in force an agreement between the members of a trade union shall not be void or voidable by reason only that any of the objects of the agreement are in restraint of trade :
Provided that nothing in this section shall enable any civil court to entertain any legal proceedings instituted for the express purpose of enforcing, or recovering damages for the breach of any agreement concerning the conditions on which any members of a trade union shall or shall not sell their goods, transact business, or work, employ or be employed.
20. Registration of federation of trade unions. - (1) Any two or more registered trade unions may, if their respective general bodies so resolve, constitute a federation by executing an instrument of federation and apply for the registration of the federation :
Provided that a trade union of workmen shall not join a federation which comprises a trade union of employers, nor shall a trade union of employers join a federation which comprises a trade union of workmen.
(2) An instrument of federation referred to in sub-section (1) shall, among other things, provide for the procedures to be followed by federated trade unions and the rights and responsibilities of the federation and the federated unions.
(3) An application for the registration of a federation of trade unions shall be signed by the presidents of all the trade unions constituting the federation or by the officers of these trade unions respectively authorised by the trade unions in this behalf and shall be accompanied by three copies of the instrument of federation referred to in sub-section (1).
(4) Subject to sub-sections (1), (2) and (3), provisions of this Ordinance shall, so far as may be and with the necessary modifications, apply to a federation of trade unions as they apply to a trade union.
21. Returns. -
(1) There shall be sent annually to the Registrar, on or before such date as may be prescribed, a general statement audited in the prescribed manner of all receipts and expenditure of every registered trade union during the year ending on the 31st day of December next preceding such prescribed date, and of the assets and liabilities of the trade union existing on such 31st day of December as may be prescribed.
(2) Together with the general statement there shall be sent to the Registrar a statement showing all changes of officers made by the trade union during the year to which the general statement refers, also with a statement of the total paid membership and a copy of the constitution of the trade union corrected up to the date of the despatch thereof to the Registrar.
(3) A copy of every alteration made in the constitution of a registered trade union and of a resolution of the general body having the effect of a provision of the constitution shall be sent to the Registrar within 15 days of the making of the alteration or adoption of resolution.
(4) In case the registered trade union is member of a federation, the name of that federation shall be given in the annual statement.
22. Collective bargaining agent. -
(1) Where there is only one registered trade union in an establishment or a group of establishments, that trade union shall, if it has as its members not less than one-third of the total number of workmen employed in such establishment or group of establishments upon an application made in this behalf be certified by the Registrar in the prescribed manner to be collective bargaining agent for such establishment or group.
(2) Where there are more registered trade unions than one in an establishment or a group of establishments, the Registrar shall, upon an application made in this behalf by any such trade union which has as its members not less than one-third of the total number of workmen employed in such establishment or group of establishments or by the employer, or the Government hold within fifteen days from the making of the application, a secret ballot to determine as to which one of such trade unions shall be the collective bargaining agent for the establishment or group:
Provided that the Registrar may, in the case of a large establishment having its branches in more than one town, bold the secret ballot within thirty days from the making of the application:
Provided further that the Registrar shall not entertain any application under this sub-section in respect of an establishment or group of establishments, consisting of, or including, a seasonal factory within the meaning of section 4 of the Factories Act, 1934 (XXV of 1934), unless such application is made during the month in which the number of workmen employed in such factory in a year is usually the maximum.
(3) Upon receipt of an application under sub-section (2) the Registrar shall, by notice in writing, call upon every registered trade union in the establishment or group of establishments to which the application relates -

• (a) to indicate whether it desires to be contestant in the secret ballot to be held for determining the collective bargaining agent in relation to such establishment or group; and
• (b) if it so desires, to submit to him within the time specified in the notice a list of its members showing, in respect of each member, his parentage, age, the section or department and the place in which he is employed, his ticket number and the date of his becoming a member and if the trade union is a federation of trade unions, a list of its affiliated trade unions together with a list of members of each such trade union showing in respect of each such member the said particulars.

(4) Every employer shall -

• (a) on being so required by the Registrar, submit a list of all workmen employed in the establishment excluding those whose period of employment in the establishment is less than three months and showing, in respect of each workman, his parentage, age, the section or department and the place in which he is employed, his ticket number and the date of his employment in the establishment; and
• (b) provide such facilities for verification of the list submitted by him and the trade unions as the Registrar may require :
  Provided that in computing the period of three months referred to in clause (a) in the case of a workman employed in a seasonal factory within the meaning of section 4 of the Factories Act, 1934 (XXV of 1934), the period during which he was employed in that factory during the preceding season shall also be taken into account.

(5) The Registrar shall, after verification of the lists submitted by trade unions, prepare a list of voters in which shall be included the name of every workman whose period of employment, as computed in accordance with sub-section (4); is not less than three months and who is a member of any of the contesting trade unions and shall, at least four days prior to the date fixed for the poll send to each of the contesting trade unions a certified copy of the list of voters so prepared.
(6) Every workman who is a member of any of the contesting trade unions and whose name appears in the list of voters prepared under sub-section (5) shall be entitled to vote at the poll to determine the collective bargaining agent.
(7) Every employer shall provide all such facilities in his establishment as may be required by the Registrar for the conduct of the poll but shall not interfere with, or in any way, influence, the voting.
(8) No person shall canvass for vote within a radius of fifty yards of the polling station.
(9) For the purpose of holding secret ballot to determine the collective bargaining agent, the Registrar shall -

• (a) fix the date of the poll and intimate the same to each of the contesting trade unions and also to every employer;
• (b) on the date fixed for the poll so place in the polling station set up for the purpose the ballot boxes which shall be sealed in the presence of the representatives of the contesting trade unions as to receive the ballot papers;
• (c) conduct the poll at the polling station at which the representives of the contesting trade unions shall have the right to be present;
• (d) after the conclusion of the poll and in the presence of such of the representatives of the contesting trade unions as may be present, open the ballot boxes and count the votes; and
• (e) after the conclusion of the count, certify the trade union which has received the highest number of votes to be the collective bargain agent:
  Provided that no trade union shall be certified to be the collective bargaining agent for an establishment or group of establishments unless the number of votes received by it is not less than one third of the total number of workmen employed in such establishment or group:
  Provided further that, if no trade union secures such number of votes in the first poll, a second poll shall be held between the trade unions which secure the two highest numbers of votes in the first poll and the trade union which secures a majority of the votes cast at the second poll shall be certified in the prescribed manner to be the collective bargaining agent:
  Provided further that, if the number of votes secured by two or more trade unions securing the highest number of votes is equal, further poll shall be held between them until one of them secures a majority of the votes cast at such further poll.

(9a) If no trade union indicates under clause (a) of sub-section (3) that it desires to be a contestant in the secret ballot, the Registrar shall certify the trade union which has made the application under sub-section (2) to be the collective bargaining agent,
(10) Where a registered trade union has been certified under clause (e) of sub-section (9) to be the collective bargaining agent for an establishment or group of establishments, no application for the determination of the collective bargaining agent for such establishment or group shall be entertained within a period of two years from the date of such certification except where the registration of such a registered trade union is cancelled before the expiration of that period.
(11) A collective bargaining agent may, without prejudice to its own position, implead as a party to any proceedings under this Ordinance to which it is itself a party any federation of trade unions of which it is a member.
(12) The collective bargaining agent in relation to an establishment or group of establishments shall be entitled to -

• (a) undertake collective bargaining with the employer or employers on matters connected with employment, non-employment, the terms of employment or the conditions of work; other than matters which relate to the enforcement of any right guaranteed or secured to it or any workman by or under any law, other than this Ordinance, or any award or settlement;
• (b) represent all or any of the workmen in any proceedings;
• (c) give notice of, and declare, a strike in accordance with the provisions of this Ordinance ; and
• (d) nominate representatives of workmen on the Board of Trustees of any welfare institutions or Provident Funds, and of the Workers' Participation Fund established under the Companies Profits (Workers' Participation) Act, 1968 (XII of 1968).

(13) The Registrar may authorise in writing an officer to perform all or any of his functions.
22A. National Industrial Relations Commission. -
(1) The Federal Government shall constitute a National Industrial Relations Commission.
(2) The Commission shall consist of not less than seven members including the Chairman.
(3) The qualifications for appointment as a member or as the Chairman of the Commission shall be such as may be determined by the Federal Government.
(4) The Chairman and other members of the Commission shall be appointed by the Federal Government.
(5) Two of the members shall be appointed in the prescribed manner to advise the Chairman, one to represent the employers and the other to represent industry-wise trade unions, federations of such trade unions and federations at the national level.
(6) The Chairman of the Commission may, in addition to the representative of workers appointed to the Commission, co-opt, in cases where he deems it necessary, from amongst workers belonging to federations at the national level such representatives of workers as be may deem fit.
(7) The workers' representatives co-opted under sub-section (6) shall be entitled to such honorarium as the Federal Government may, on the advice of the Chairman of the Commission, determine.
(8) The following shall be the functions of the Commission, namely -

• (a) to promote the formation of trade unions of workers within the same industry whether in establishments within a Province or in more than one Province and federations of such trade unions;
• (b) to promote the formation of federations at the national level;
• (c) to adjudicate and determine an industrial dispute to which an industry-wise trade union or a federation of such trade unions is a party and any other industrial dispute which is in the opinion of the Federal Government of national importance and is referred to it by that Government;
• (d) to register industry-wise trade unions, federations of such trade unions and federations at the national level;
• (e) to determine the collective bargaining agents amongst industry-wide trade unions, federations of such trade unions and federations at the national level;
• (f) to try offences punishable under -
  • (i) section 53, other than sub-sections (1) and (5) thereof; and
  • (ii) any other sections, in so far as they relate to employers or workers in relation to an industry-wise trade union, a federation of such trade unions, a federation at the national level or officers of such union or federation;
• (g) to deal with cases of unfair labour practices specified in sections 15 and 16 on the part of employers, workmen, trade unions of either of them or persons acting on behalf of any of them, whether committed individually or collectively, in the manner laid down under section 25A or section 34 or in such other way as may be prescribed, and, to take, in such manner as may be prescribed by regulations under section 22F, measures calculated to prevent an employer or workman from committing an unfair labour practice;
• (h) to advise Government, industry-wise trade unions and federations in respect to the education of workers in the essentials of trade unionism, including education in respect of their rights and obligations, and to secure the provision of facilities required therefor, and to apportion the cost thereof between the Provincial and Federal Governments, industry-wise trade unions, federations of such trade unions and federations at the national level, and the employers, in such manner as may be considered equitable by the Commission ; and
• (i) such other powers and functions as the Federal Government may by notification in the official Gazette, assign to it from time to time.

(9) The Commission may, on the application of a party, or of its own motion, -

• (a) initiate prosecution, trial or proceedings or take action, with regard to any matter relating to its functions; and
• (b) withdraw from a Labour Court any application, proceedings or appeal relating to unfair labour practice.

(10) For the purpose of dealing with a case of unfair labour practice of which the Commission is seized, the Commission may -
(a) proceed directly with the case, or
(b) ask the Registrar within whose jurisdiction the case has occurred or is likely to occur to enquire into it and submit a report, or
(c) refer the case to Labour Court within whose jurisdiction the case has occurred or is likely to occur, either for report or for disposal.
(10-a) The Labour Court to whom the case is so referred shall enquire into it and, if the case was referred to it for report, forward its report thereon to the Commission or, if the case was referred to it for disposal, continue the proceedings and dispose of the case as if the proceedings had originally commenced before it and grant such relief as the Commission has the power to grant.
(11) Save as provided in (sub-sections (10a) and (12) no Registrar, Labour Court or Tribunal shall take any action, or entertain any application or proceedings, in respect of any matter which falls within the jurisdiction of the Commission.
(12) Nothing in this section shall be deemed to exclude the jurisdiction of Labour Court to entertain cases of unfair labour practices on the part of employers or workmen, whether individually or collectively:
Provided that no court, including a Labour Court, shall take any action or entertain any application or proceedings in respect of a case of unfair labour practice which is being dealt with by the Commission.
Explanation.- In this section and in the succeeding provision of this Ordinance, the expressions "industry-wise trade union , "federation of such trade unions", and "federation at the national level" refer to a trade union the membership of which extends to establishments in more than one Province and a federation of trade unions whose membership extends to registered trade unions in more than one Province.
22B. Benches of the Commission, etc. -
(1) The Chairman of the Commission shall exercise general superintendence over its affairs.
(2) For the efficient performance of the functions of the Commission, the Chairman shall constitute -

• (a) a Full Bench of the Commission which shall consist of not less than three members of the Commission; and
• (b) as many other Benches of the Commission consisting of one or more members of the Commission as he may deem fit.

(3) The Benches shall, -

• (a) in relation to cases based on allegations of unfair labour practices brought before the Commission for trial of offences, or enforcement of, or for redress of individual grievances in respect of any right guaranteed or secured to any employer or worker by or under any law or any award or settlement, perform such functions and exercise such powers as are performed and exercised by a Labour Court; and
• (b) in relation to industry-wise trade unions, federations of such trade unions, federations at the national level and cases referred to the Commission, perform such functions and exercise such powers as are performed and exercised by a Registrar, a Labour Court or a Tribunal in relation to trade unions and federations of trade unions within a Province.

and, for this purpose, any reference in this Ordinance to a "Registrar", "Labour Court", or, as the case may be, "Tribunal" shall be deemed to be a reference to the appropriate Bench of the Commission to which such functions are assigned :
Provided that, in the performance of those functions and in the exercise of those powers, the Benches shall, unless otherwise provided in this Ordinance, follow the procedure laid down in the regulations to be made under section 22-F.
(4) If any member of the Commission is absent from, or is otherwise unable to attend any sitting of the Commission or of a Bench consisting of more than one member of which he is a member, the proceedings of the Commission or Bench may continue, and the decision or award may be given or judgment or sentence may be passed in the absence of such member and no act, proceedings, decision, or award of the Commission or Bench shall be invalid or be called in question merely on the ground of such absence or of the existence of vacancy in or any defect in the constitution of the Commission or Bench.
(5) If the members of a Bench differ in opinion as to the decision to be given on any point -

• (a) the point shall be decided according to the opinion of the majority, if there is a majority; and
• (b) if the members are equally divided, they shall state the point on which they differ and the case shall be referred by them to the Chairman for hearing on such point by one or more of the other members of the Commission, and such point shall be decided according to the opinion of the majority of the members of the Commission who have heard the case, including those who first heard it:
  Provided that if, upon any matter requiring the decision of a Bench which includes the Chairman of the Commission as one of its members, there is a difference of opinion among its members and the members so constituting the Bench are equally divided, the opinion of the Chairman shall prevail and the decision of the Bench shall be expressed in terms of the views of the Chairman.

(6) Any order or decision made, award given, sentence passed, power exercised, functions performed or proceedings taken by any Bench of the Commission in accordance with this Ordinance and the order constituting the Bench shall be deemed to be the order or decision made, award given, sentence passed, power exercised, function performed or proceedings taken, as the case may be, by the Commission.
Explanation. - In this section, the expression 'the Chairman of the Commission' includes such member of the Commission (to be known as Senior Member) as the Chairman may nominate to perform the functions, and exercise the powers, of the Chairman during his absence.
22C. Additional powers of the Commission. - In addition to the powers which the Commission has under section 22-B. -

• (a) the Commission shall have power to punish any person who obstructs or abuses its process or disobeys any of its order or directions, or does anything which tends to prejudice the case of a party before it, or tends to bring it or any of its members in relation to proceedings of the Commission into hatred or contempt, or does anything which, by law, constitutes contempt of court, with simple imprisonment which may extend to six months, or with fine which may extend to two thousand rupees, or with both ; and
• (b) for the purpose of any investigation, inquiry or adjudication to be made by the Commission under this Ordinance, the Chairman or any member of the Commission may at any time between the hours of sunrise and sunset, and any other person authorised in writing by the Chairman or any member of the Commission in this behalf may, after he has given reasonable notice, enter any building, factory, workshop, or other place or premises whatsoever and inspect the same or - any work, machinery, appliance or article therein or interrogate any person therein in respect of anything situated therein or any matter relevant to matters before the Commission.

22D. Appeals. -
(1) Notwithstanding anything contained in this Ordinance, or in any other law for the time being in force, any person aggrieved by an award or decision given or a sentence or order determining and certifying a collective bargaining unit passed by any Bench of the Commission, other than a Full Bench, may, within thirty days of such award, decision or sentence or order, prefer an appeal to the Commission.
(2) An appeal preferred to the Commission under sub-section (1) shall be disposed of by the Full Bench of the Commission, which shall, -

• (a) if the appeal is from an order determining and certifying a collective bargaining unit, have the power to confirm, set aside, vary or modify such an order; and
• (b) if the appeal relates to any other matter, have the same power in relation to the appeal as the Labour Court, the Tribunal or the High Court, as the case may be, would have had if the matter to which the appeal relates were a matter in relation to which an appeal can be preferred to the Labour Court, the Tribunal or the High Court.

22E. Finality of order. - No Court shall entertain any plea as to the jurisdiction of the Commission or as to the legality or propriety of anything done or purporting to be done by the Commission or any of its Benches, and no order, decision, judgment or sentence of the Commission shall be called in question in any manner whatsoever, in or before any Court or other authority.
22EE. Determination etc , of collective bargaining unit. -
(1) Where the Commission, on an application made in this behalf, by a trade union of workmen or a federation of such trade unions, or on a reference made by the Federal Government, after holding such inquiry as it deems fit, is satisfied that for safeguarding the interest of the workmen employed in an establishment or group of establishments belonging to the same employer and the same industry, in relation to collective bargaining, it is necessary, just and feasible to determine one or more collective bargaining units of such workmen in such establishment or group, it may, having regard to the distribution of workers, existing boundaries of the components of such establishment or group, facilities of communication, general convenience sameness or similarity of economic activity and other cognate factors,

• (a) determine and certify one or more collective bargaining units in such establishment or group;
• (b) specify the modifications which, in consequence of the decision under this section, will take effect in regard to the registration of the trade unions and federations of trade unions affected by such decision and certification of collective bargaining agents among such unions and federations, nomination or election of shop stewards, and workers' representatives for participation in the management of the factories, if any, affected by such decision;
• (c) specify the date or dates from, and the period for which, all or any of such changes shall take effect;
  Provided that the date so specified shall not be a date falling within the period of two years specified in sub-section (10) of section 22 in its application to a collective bargaining agent certified in respect of an establishment or establishments:
  Provided further that, after the receipt of a reference for determination of a collective bargaining unit, the Commission may stop or prohibit the proceedings to determine collective bargaining agent under section 22 for any establishment or group of establishments which is likely to be affected by a decision under this section.
• (d) take such measures or issue such directions to the Registrar as may be necessary to give effect to such modifications; and
• (e) determine and certify a collective bargaining agent for each such unit in accordance with section 22, in so far as applicable and with the necessary modifications, if such a unit relates to more than one Province, or direct the Registrar to take such action, if such a unit relates to only one Province.

(2) Where the Commission issues any directions to the Registrar under this section, the Registrar shall comply with them within such period as the Commission may from time to time determine.
(3) After the certification of a collective bargaining unit, no trade union shall be registered in respect of that unit except for the whole of such unit and no certification or proceedings for determination of collective bargaining agent under section 22 shall take place for a part of a collective bargaining unit or a group of collective bargaining units.
(4) An order of the Commission under this section shall have effect notwithstanding anything to the contrary contained in this Ordinance.
22F. Power to make regulations. -
(1) Subject to the provisions of this Ordnance, the Commission may, with the prior approval of the Federal Government, make such regulations relating to its procedure and the performance of its functions as it may deem fit, and the regulations shall have effect notwithstanding any thing inconsistent therewith contained in the Evidence Act, 1872 (1 of 1872), the Code of Criminal Procedure 1898. (Act V of 1898), the Code of Civil Procedure, 1908 (Act V of 1908), or any other law for the time being in force.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely : -

• (a) registration of industry-wise trade unions, federations of such trade unions and federations at the national level, and the procedure for such registration ;
• (aa) determination of collective bargaining units;
• (b) determination of collective bargaining agent from amongst the industry-wise trade unions, federations of such trade unions or, as the case may be, federations at the national level, and the procedure therefor ;
• (c) procedure, including rules of evidence, for adjudication of industrial disputes;
• (d) procedure, including rules of evidence, for trial offences;
• (e) procedure for dealing with unfair labour practices;
• (f) superintendence of the Chairman over the affairs of the Commission;
• (g) forms of registers, processes and returns in respect of matters relating to the functions of the Commission; and
• (h) fixing of places and times of its sittings and deciding whether to sit in public or in private.

23. Check-off. -
(1) If a collective bargaining agent so requests, the employer of the workmen who are members of a trade union shall deduct from the wages of the workmen such amounts towards their subscription to the funds of the trade union as may be specified with the approval of each individual workman named in the demand statement furnished by the trade union.
(2) An employer making any deductions from the wages under sub-section (1) shall, within 15 days of the end of the period for which the deductions have been made, deposit the entire amount so deducted by him in the account of the trade union on whose behalf he has made the deductions.
(2A) A collective bargaining agent shall maintain with a branch of the National Bank of Pakistan or with a Post Office Saving Bank an account to which shall be credited the entire amount deducted by the employer under sub-section (1) from the wages of the members of the trade union.
(3) The employer shall provide facilities to the collective bargaining agent for ascertaining whether deductions from the wages of its members are being made under sub-section (1).
23A. Shop Stewards to act as link between labour and management. -
(1) ln every establishment in which fifty or more workmen are employed, shop stewards, from amongst the workmen in a shop, section or department of the establishment shall -

• (a) where there is a collective bargaining agent in the establishment, be nominated by it, or
• (b) where there is no collective bargaining agent in the establishment, be elected at a secret ballot held in the prescribed manner:

(2) The employer shall provide all such facilities in his establishment as may be required for the holding of a ballot under sub-section (1) but shall not interfere with, or in any way influence, the voting.
(3) A Shop Steward shall hold office for a period of one year from the date of his election or nomination, as the case may be.
(4) Any dispute arising out of, or in connection with, the election of a Shop Steward shall be referred to the Registrar whose decision shall be final and binding on all parties to the dispute.
(5) The Shop Steward shall act as a link between the workers and the employer, assist in the improvement of arrangements for the physical working conditions and production work in the shop, section or department for which he is elected and help workers in the settlement of their problems either connected with work or with any such individual grievance of a workman as is referred to in sub-section (1) of section 25A.
23B. Workers' participation in management. -
(1) In every factory employing fifty persons or more there shall be elected or nominated workers' representatives to participate to the extent of fifty per cent in the management of the factory:
Provided that there shall be elected or nominated at least one workers' representative to participate in the management of such a factory:
Provided further that, for the purpose of determining the number of workers' representatives in the management of a factory, fractions equal to, or greater than, one-half shall be regarded as one and lesser fractions shall be ignored.
(2) The workers' representatives shall be workmen employed in the same factory and shall,

• (a) where there is a collective bargaining agent in the factory, be nominated by it, or
• (b) where there is no collective bargaining agent in the factory, be elected by simple majority at a secret ballot by all workmen employed in the factory.

(3) Omitted.
(4) The workers' representatives shall hold office for a period of two years from the date of their election or nomination, as the case may be.
(5) The workers' representatives shall participate in all the meetings of the management committee constituted in the prescribed manner and all matters relating to the management of the factory, except commercial and financial transactions, may be discussed in such meetings.
(6) The management shall not take any decision in the following matters without the advice in writing of the workers' representatives, namely,-

• (i) framing of service rules and policy about promotion and discipline of workers;
• (ii) changing physical working conditions in the factory;
• (iii) in-service training of workers;
• (iv) recreation and welfare of workers;
• (v) regulation of daily working hours and breaks;
• (vi) preparation of leave schedule ; and
• (vii) matters relating to the order and conduct of workers within the factory.

(7) The workers' representatives may on their own initiative give advice in writing concerning the matters specified in sub-section (6) and where they do so, the management shall convene a meeting within two weeks of the receipt of the advice to discuss its merits with them.
(8) The management shall give reply to the workers' representatives within six weeks of the receipt of their advice given under sub-section (6) or (7) and any such advice shall not be rejected except by the person holding the highest position in the management of the factory.
(9) In case the advice of the workers' representatives is rejected by the management of the factory, the matter may, within fifteen days of the advice being so rejected, be taken up by the collective bargaining agent in the Works Council for bilateral negotiations and thereupon the provisions of section 26 shall apply as they apply to the settlement of an industrial dispute in relation to which the views of the employer or the collective bargaining agent have been communicated to the Works Council under sub-section (1) of that section.
(10) The collective bargaining agent for an establishment which is a factory the number of workers employed in which in any shift at any time during a year is fifty or more may apply to the Provincial Government to nominate an Auditor to audit the accounts of the factory once after the closing of every accounting year and for that purpose to inspect the accounts, records, premises and stores of the factory once every year.
(11) An application under sub-section (10) shall be accompanied by a panel of three persons who are chartered accountants within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961), and on receipt of such application, the Provincial Government shall appoint one of such persons to be an auditor for the purposes of that sub-section.
(12) The fee of an auditor appointed under sub-section (11) shall be determined by the Provincial Government and paid by the management of the factory who shall also afford him all facilities necessary for the discharge of his functions.
(13) This section shall have effect notwithstanding anything contained in the Companies Act, 19l3(VII of 1913), or any other law for the time being in force or in any agreement or contract or memorandum or articles of association.
(14) In this section -

• (a) "factory" has the same meaning as in the Factories Act, 1934 (XXV of 1934;)
• (b) "management" means the employer.

23C. Joint management board. -
(1) Every company which owns or manages a factory, and in every factory which is not so owned or managed, and which employs fifty persons or more, the management shall, in the prescribed manner set up a joint management board in which the workers' participation shall be to the extent of thirty per cent.
(2) The employer's representatives on the joint management board shall be from amongst the Directors or senior executives and the workers' representatives shall be workmen employed in the factory.
(3) The joint management board shall lock after the following matters, namely:-

• (a) improvement in production, productivity and efficiency;
• (b) fixation of job and piece-rates;
• (c) planned regrouping or transfer of the workers;
• (d) laying down the principles of remuneration and introduction of new remuneration methods; and
• (e) provision of minimum facilities for such of the workers employed through contractors as are not covered by the laws relating to welfare of workers.

(4) The joint management board may call for reasonable information about the working of the company or factory from its management and the management shall supply the information called for.
(5) The joint management board shall meet at such intervals as may be prescribed.
(6) The workers' representatives shall hold office for such period as may be prescribed.
(7) In this section, -

• (a) "company" has the same meaning as in the Companies Act, 1913 (VII of 1913);
• (b) ''factory" and "management" have the same meaning as in section 23B.

23D. Inspector. -
(1) The inspectors appointed under section 10 of the Factories Act, 1934 (XXV of 1934), and such other persons, not being Concilitators appointed under this Ordinance, as the Provincial Government may, by notification in the official Gazette appoint, shall be inspectors for ensuring compliance with the provisions of section 23B and section 23C within the local limits assigned to each.
(2) The inspector may -

• (i) at all reasonable hours enter on any premises and make such examination of any register and document relating to the provisions of section 23B and section 23C and take on the spot or otherwise such evidence of any person, and exercise such other powers of inspection, as he may deem necessary for discharging his duty;
• (ii) call for such information from the management as he may deem necessary for the discharge of his functions and the management shall provide the information called for within such period as may be specified by him; and
• (iil) make a report in writing to the Registrar having jurisdiction of any offence punishable under section 23E.

(3) Every inspector shall be deemed to be a public servant within the meaning of section 21 of the Pakistan Penal Code (XLV of 1860).
23E. Penalty for obstructing inspector. - Whoever wilfully obstructs an inspector in the exercise of any power under section 23D, or fails to produce on demand by an inspector any register or other document in his custody relating to the provisions of section 23B and section 23C or the rules, or conceals or prevents any worker in a factory from appearing before or being examined by an inspector, shall be punishable with fine which may extend to five hundred rupees.
23F. Penalty for contravening section 23B or 23C, etc. -
(1) Whoever contravenes the provisions of section 23B or section 23C shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to two thousand rupees, or with both.
(2) No court shall take cognizance of any offence punishable under sub-section (1) except upon a complaint in writing made by the Registrar.

JOINT CONSULTATION, CONCILIATION AND MEDIATION

24. Work Council. -
(1) In every establishment in which 50 or more workmen are employed or were employed on any day in the preceding 12 months, the employer shall constitute, in the prescribed manner, a works council consisting of representatives of the employer and the workmen so however that the number of the representatives of the workmen is not less than the number of the representatives of the employer in the works council.
(2) In the case of an establishment where there are one or more trade unions, the collective bargaining agent shall nominate the representatives of the workmen on such works council:
Provided that where there is no collective bargaining agent, representatives of workmen on a works council shall be chosen in the prescribed manner from amongst the workmen engaged in the establishment for which the works council is constituted.
25. Functions of Works Council. - The functions of a works council shall be to promote measures for securing and preserving good relations between an employer and his workmen and in particular -

• (a) to endeavour to maintain continuous sympathy and understanding between the employer and workmen;
• (aa) to promote settlement of differences through bilateral negotiations ;
• (b) to promote security of employment for the workmen and conditions of safety, health and job satisfaction in their work;
• (c) to encourage vocational training within the establishment;
• (d) to take measures for facilitating good and harmonious working conditions in the establishment, to provide educational facilities for children of workmen in secretarial and accounting procedures and to promote their absorption in these departments of the establishment; and
• (e) to discuss any other matter of mutual interest with a view to promoting better labour management relations.

25A. Redress of individual grievances. -
(1) A worker may bring his grievance in respect of any right guaranteed or secured to him by or under any law or any award or settlement for the time being in force to the notice of his employer in writing, either himself or through his shop steward or collective bargaining agent, within three months of the day on which cause of such grievance arises.
(2) Where a worker himself brings his grievance to the notice of the employer, the employer shall, within fifteen days of the grievance being brought to his notice, communicate his decision in writing to the worker.
(3) Where a worker brings his grievance to the notice of his employer through his shop steward or collective bargaining agent the employer shall, within seven days of grievance being brought to his notice, communicate his decision in writing to the shop steward or, as the case may be, the collective bargaining agent.
(4) If the employer fails to communicate a decision within the period specified in sub-section (2) or, as the case may be, sub-section (3), or if the worker is dissatisfied with such decision, the worker or shop steward may take the matter to his collective bargaining agent or the Labour Court, or, as the case may be, the collective bargaining agent may take the matter to the Labour Court, and where the matter is taken to the Labour Court it shall give a decision within seven days from the date of the matter being brought before it as if such matter were in an industrial dispute:
Provided that a worker who desires to so take the matter to the Labour Court shall do so within a period of two month from the date of the communication of the employer or, as the case may be, from the expiry of the period mentioned in sub-section (2) or sub-section (3), as the case may be.
(5) In adjudicating and determining a grievance under sub-section (4), the Labour Court shall go into all the facts of the case and pass such orders as may be just and proper in the circumstances of the case.
(6) Omitted.
(7) Omitted.
(8) If a decision under sub-section (4) or an order under subsection (5) given by the Labour Court or a decision of the Tribunal in an appeal against such a decision or order is not given effect to or complied with within a week or within the period specified in such order or decision, the defaulter shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees.
(9) No person shall be prosecuted under sub-section (8) except on a complaint in writing : -

• (a) by the workman if the order or decision in his favour is not implemented within the period specified therein, or
• (b) by the Labour Court or Tribunal, if an order or decision thereof is not complied with.

(10) For the purposes of this section, workers having common grievance arising out of a common cause of action may make a joint application to the Labour Court.
26. Negotiations relating to differences and disputes. -
(1) If at any time an employer or a collective bargaining agent finds that an industrial dispute has arisen or is likely to arise, the employer or, as the case may be, the collective bargaining agent, may communicate his or its views in writing either to the Works Council or to the other party so, however, that, where the views are so communicated to the Works Council, a copy of the communication shall also be sent to the other party.
(2) On receipt of the communication under sub-section (1), the Works Council or the party receiving it shall try to settle the dispute by bilateral negotiations within ten days of the receipt of the communication or within such further period as may be agreed upon by the parties and, if the parties reach a settlement, a memorandum of settlement shall be recorded in writing and signed by both the parties and a copy thereof shall be forwarded to the Conciliator and the authorities mentioned in clause (xxiv) of section 2.
(3) Where a settlement is not reached between the employer and the collective bargaining agent or, if the views of the employer or collective bargaining agent have been communicated under sub-section (1) to the Works Council, there is a failure of bilateral negotiations in the Work Council, the employer or the collective bargaining agent may, within seven days from the end of the period referred to in sub-section (2), serve on the other party to the dispute a notice of lock-out or strike, as the case may be, in accordance with the provisions of this Ordinance.
27. Conciliator. -
(1) The Provincial Government shall, by notification in the official Gazette, appoint as many persons as it considers necessary to be Conciliators for the purposes of this Ordinance and shall specify in the notification the area within which, or the class of establishments or industries in relation to which, each one of them shall perform his functions.
(2) The Federal Government may, by notification in the official Gazette, appoint as many persons as it considers necessary to act as Conciliators in such disputes as the National Industrial Relations Commission is competent to adjudicate and determine under this Ordinance.
28. Notice of strike or lock-out. -The period of a notice of lockout or strike given under sub-section (3) of section 26 shall be fourteen days.
29. Conciliation after notice of strike or lock-out. -Where a party to an industrial dispute serves a notice of strike or lock-out under section 26, it shall, simultaneously with the service of such notice, deliver a copy thereof to the Conciliator who shall proceed to conciliate in the dispute and to the Labour Court.
30. Proceedings before Conciliator. -
(1) The Conciliator shall, as soon as possible, call a meeting of the parties to the dispute for the purpose of bringing about a settlement.
(2) The parties to the dispute shall be represented before the Conciliator by persons nominated by them and authorised to negotiate and enter into an agreement binding on the parties:
Provided that if, in the opinion of the Conciliator, the presence of the employer or any Officer of the Trade Union connected with the dispute is necessary in a meeting called by him, he shall give notice in writing requiring the employer or such Officer to appear in person before him at the place, date and time, specified in the notice and it shall be the duty of the employer or the Officer of Trade Union to comply with the notice.
(3) The Conciliator shall perform such functions in relation to a dispute before him as may be prescribed and may, in particular, suggest to either party to the dispute such concessions or modifications in its demand as are in the opinion of the Conciliator likely to promote an amicable settlement of the dispute.
(4) If a settlement of the dispute or of any matter in dispute is arrived at in the course of the proceedings before him, the Conciliator shall send a report thereof to the Provincial Government together with the memorandum of settlement signed by the parties to the dispute.
(5) If no settlement is arrived at within the period of the notice of strike or lock-out, the conciliation proceedings may be continued for such further period as may be agreed upon by the parties.
31. Arbitration. -
(1) If the conciliation fails, the Conciliator shall try to persuade the parties to agree to refer the dispute to an arbitrator. In case the parties agree, they shall make a joint request in writing for reference of the dispute to an arbitrator agreed upon by them.
(2) The arbitrator to whom a dispute is referred under sub-section (1) may be a person borne on a panel to be maintained by the Provincial Government or any other person agreed upon by the parties.
(3) The arbitrator shall give his award within a period of thirty day from the date on which the dispute is referred to him under sub-section (1) or such further period as may be agreed upon by the parties to the dispute.
(4) After he has made an award, the arbitrator shall forward a copy thereof to the parties and to the Provincial Government who shall cause it to be published in the official Gazette.
(5) The award of the arbitrator shall be final and no appeal shall lie against it. It shall be valid for a period not exceeding two years or as may be fixed by the arbitrator.
32. Strike and Lock-out. -
(1) If no settlement is arrived at during the course of conciliation proceedings and the parties to the dispute do not agree to refer it to an arbitrator under section 31 the workmen may go on strike or, as the case may be, the employer may declare a lock-out on the expiry of the period of the notice under section 28 or upon a declaration by the conciliator that conciliation have failed, whichever is the later.
(1A) The party raising a dispute may at any time, either before or after the commencement of a strike or lock-out, make an application to the Labour Court for adjudication of the dispute.
(2) Where a strike or lock-out lasts for more than thirty days the Federal Government, if it relates to a dispute which the Commission is competent to adjudicate and determine, and the Provincial Government, if it relates to any other dispute, may, by order in writing, prohibit the strike or lock-out.
Provided that the Federal Government may, with respect to a strike or lock-out relating to a dispute which the Commission is competent to adjudicate and determine and the Provincial Government, with the previous approval of the Federal Government may, with respect to any other strike or lock-out, by order in writing, prohibit a strike or lock-out at any time before the expiry of thirty days, if it is satisfied that the continuance of such a strike or lock-out is causing serious hardship to community or is prejudicial to the national interest.
(3) In any case in which the Federal Government or the Provincial Government prohibits a strike or lock-out, it shall forthwith refer the dispute to the Commission or, as the case may be, the Labour Court.
(4) The Commission, or as the case may be, the Labour Court shall, after giving both the parties to the dispute an opportunity of being heard, make such award as it deems fit as expeditiously as possible but not exceeding thirty days from the date on which the dispute was referred to it:
Provided that the Commission, or as the case may be, the Labour Court may also make an interim award on any matter of dispute:
Provided also that any delay by the Commission, or as the case may be, the Labour Court in making an award shall not affect the validity of any award made by it.
(5) An award of the Commission or as the case may be, the Labour Court shall be for such period, as may be specified in the award, which shall not be more than two years.
33. Strike or lock-out in public utility services. -
(1) The Federal Government in the case of a strike or lock-out relating to -

• (a) an industrial dispute of national importance, or
• (b) an industrial dispute in respect of any of the public utility services, which the Commission is competent to adjudicate and determine, and the Provincial Government in the case of a strike or lock-out relating to an industrial dispute in respect of any of the public utility services which the Commission is not competent to adjudicate and determine, may, by order in writing, prohibit a strike or lock-out at any time before or after the commencement of the strike or lock-out.

(2) The provisions of sub-sections (3), (4) and (5) of section 32 shall also apply to an order made under sub-section (1) above as they apply to an order made under sub-section (2) of that section.
34. Application to Labour Court. -Any collective bargaining agent or any employer may apply to the Labour Court for the enforcement of any right guaranteed or secured to it or him by or under any law or any award or settlement.
34A. Raising of industrial dispute by a federation. -
(1) Notwithstanding anything contained in this Ordinance, a federation of industry-wise trade unions or a federation at the national level may, if it is a collective bargaining agent, raise an industrial dispute affecting all employers or workers of the establishments represented by that federation and a decision of the Commission shall be binding on all such employers and workers.
(2) No collective bargaining agent shall, at any time when a decision of the Commission in respect of any matter is effective, be entitled to raise a demand relating to that matter.
35. Labour Court. -
(1) The Provincial Government may, by notification in the official Gazette, establish as many Labour Courts as it considers necessary and where it establishes more than one Labour Court, shall specify in the notification the territorial limits within which or the industry or the classes of cases in respect of which, each one of them shall exercise jurisdiction under this Ordinance.
(2) A Labour Court shall consist of one Presiding Officer appointed by the Provincial Government.
(3) A person shall not be qualified for appointment as Presiding Officer unless he has been or is, or is qualified to be, judge or additional judge of a High Court or is a District Judge or an Additional District Judge:
Provided that the Provincial Government of Baluchistan may, after consultation with the Federal Government, appoint any person not so qualified to be the Presiding Officer of a Labour Court.
(4) Omitted.
(5) A Labour Court shall, -
(a) adjudicate and determine an industrial dispute which has been referred to or brought before it under this Ordinance
(b) enquire into and adjudicate any matter relating to the implementation or violation of a settlement which is referred to it by the Provincial Government.
(c) try offences under this Ordinance, and such other offences under any other law as the Provincial Government may, by notification in the official Gazette, specify in this behalf.
(d) exercise and perform such other powers and functions as are or may be conferred upon or assigned to it by or under this Ordinance or any other law.
36. Procedure and powers of Labour Court. -
(1) Subject to the provisions of this Ordinance, while trying an offence a Labour Court shall follow as nearly as possible summary procedure as prescribed under the Code of Criminal Procedure, 1898.
(2) A Labour Court shall, for the purpose of adjudicating and determining any industrial dispute, be deemed to be a Civil Court and shall have the same powers as are vested in such Court under the Code of Civil Procedure, 1908 (Act V of 1908) including the powers of:

• (a) enforcing the attendance of any person and examining him on oath,
• (b) compelling the production of documents and material objects, and
• (c) issuing commissions for the examination of witnesses or documents.

(3) A Labour Court shall, for the purpose of trying an offence under this Ordinance or the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (W. P. Ordinance VI of 1968), have the same powers as are vested in the Court of a Magistrate of the first class especially empowered under section 30 of the Code of Criminal Procedure, 1898 (Act V of 1898).
(4) No court fee shall be payable for filling, exhibiting or recording any document in, or obtaining any document from a Labour Court.
(5) If the parties to a case. at any time before a final order is passed by the Labour Court, satisfy the Labour Court that the matter has been resolved by them amicably and that there are sufficient grounds for withdrawing the case, it may allow such withdrawal.
Sections 36A, 36B, 36C, 36D, 36E & 36F, omitted.
37. Awards and decisions of Labour Court. -
(1) An award or decision of a Labour Court shall be given in writing and delivered in open Court and two copies thereof shall be forwarded forthwith to the Provincial Government; provided that if the Federal Government be a party, two copies of the award or decision shall be forwarded to that Government as well.
(2) The Provincial Government shall, within a period of one month from the receipt of the copies of the award or decision, publish it in the official Gazette.
(3) Any party aggrieved by an award given under sub-section (1) or a decision given under section 25A or section 34 or a sentence passed under clause (c) of sub-section (5) of section 35 may prefer an appeal to Labour Appellate Tribunal within 30 days of the delivery or passing thereof and the decision of the Tribunal in such appeal shall be final.
(4) Save as otherwise expressly provided in this Ordinance, all decisions of, and all sentences passed by, a Labour Court shall be final and shall not be called in question in any manner by or before any Court or other authority.
38. Labour Appellate Tribunal.-
(1) The Provincial Government may, by notification is the official Gazette, constitute as many tribunals consisting of one member as it may consider necessary and, where it constitutes more than one tribunal, shall specify in the notification the territorial limits within which or the class of cases in relation to which, each one of them shall exercise jurisdiction under this Ordinance.
(2) The member of the tribunal shall be a person who is or has been a judge or an Additional Judge of a High Court and shall be appointed on such terms and conditions as Government may determine.
(3) The tribunal may, on appeal, confirm, set aside, vary or modify the award or decision given under section 25A or section 34 or a sentence passed under clause (e) of sub-section (5) of section 35 and shall exercise all the powers conferred by this Ordinance on the Labour Court, save as otherwise provided. The decision of the tribunal shall be delivered as expeditiously as possible, within a period of 60 days following the filing of the appeal; provided that such decision shall not be rendered invalid by reason of any delay in its delivery.
(3a) The Tribunal may, on its own motion at any time, call for the record of any case or proceedings under this Ordinance in which a Labour Court within its jurisdiction has passed an order, for the purpose of satisfying itself as to the correctness, legality, or propriety of such order, and may pass such order, in relation thereto as it thinks fit:
Provided that no order under this sub-section shall be passed revising or modifying any order adversely affecting any person without giving such person a reasonable opportunity of being heard.
(4) The tribunal shall follow such procedure as may be prescribed.
(5) The tribunal shall have authority to punish for contempts of its authority, or that of any Labour Court subject to its appellate jurisdiction, as if it were a High Court.
(6) Any person convicted and sentenced by the tribunal under sub-section (5) to imprisonment for any period, or to pay a fine exceeding Rs. 50 may prefer an appeal to the High Court.
(7) A Tribunal may, on its motion or on the application of a party, transfer any application or proceeding from a Labour Court within its jurisdiction to any other such Labour Court.
(8) Notwithstanding anything contained in sub-section (3), if, in an appeal preferred to it against the order of a Labour Court directing the reinstatement of a workman, the Tribunal makes an order staying the operation of the order of the Labour Court, the Tribunal shall decide such appeal within twenty days of its being preferred:
Provided that, if such appeal is not decided within the period aforesaid, the order of the Tribunal shall stand vacated on the expiration of that period.
38A. Wage Commission. -
(1) The Federal Government, may, whenever it so considers necessary, by notification in the official Gazette, constitute a Wage commission for fixing rates of wages and determining all the other terms and conditions of service, in accordance with the provisions of this Ordinance in respect of the workers of a bank or such other workers as the Federal Government may, by notification in the official Gazette, specify.
(2) The Wage Commission shall consist of a Chairman appointed by he Federal Government, who shall be a person who has been or is a judge of a High Court, and such other members possessing the prescribed qualifications as may be appointed by the Federal Government.
(3) The Wage Commission shall give its decision within a period of six months from the day of its constitution, or within such extended period, not exceeding a further period of six months, as the Federal Government may, by notification in the official Gazette, specify and the decision shall be immediately communicated to the Federal Government.
(4) All questions at a meeting of the Wage Commission shall be determined by a majority of the members present and voting:
Provided that the Chairman shall have a second or a casting vote in the event of an equality of votes.
(5) No act or proceeding of the Wage Commission, whether done or taken before or after the commencement Industrial Relations (Amendment) Act. 1975 shall be invalid by reason only of any defect in the constitution of the Wage Commission.
38B. Fixation of wages, etc. -In fixing rates of wages and determining other terms and conditions of service of workers, the Wage Commission may take into consideration the cost of living, the prevalent rates of wages of comparable employments, the circumstances relating to the industry in different regions of the country and any other circumstances which to the Wage Commission may seem relevant.
38C. Publication etc of the decision of the Wage Commission. -
(1) The decision of the Wage Commission shall, within a period of one month from the date of its receipt by the Federal Government be published in such manner as may be prescribed.
(2) The decision of the Wage Commission published under sub-section (1) shall come into operation on such date as may be specified in the decision, and where no date is so specified, it shall come into operation on the date of its publication and shall remain in force for three years or until it is modified or varied by a later decision of the Wage Commission published in the manner provided in sub-section (1), whichever is later.
(3) No industrial dispute shall be raised in respect of any matter which is under consideration of the Wage Commission nor shall any depute be raised in respect of any matter on which the decision of that Commission is in operation.
(4) Any industrial dispute in respect of any matter which is under consideration of the Wage Commission which may be pending before the National Industrial Relations Commission or any Labour Court or Tribunal shall abate.
38D. Decision of Wage Commission to be deemed to be an award of the Commission. -A decision of the Wage Commission published under section 38C shall be deemed to be an award of the Full Bench of the Commission and the provisions of this Ordinance applicable to such award, including the provisions of Sections 51 and 55, so far as may be and with the necessary modifications, shall apply to the decision of the Wage Commission.
38E. Special powers of the Commission. -
(1) Notwithstanding any thing contained in this Ordinance, the Commission shall have power. -

• (a) to try an offence punishable under section 55, if the offence relates to failure to implement any decision of the Wage Commission;
• (b) of its own motion, or on the application of a party, to withdraw from any court (except the Supreme Court or a High Court) any application proceeding or appeal relating to such an offence and dispose of it; and
• (c) to refer any such application, proceeding or appeal to any competent court for disposal.

(2) Any court to which any application, proceeding or appeal is referred under clause (c) of sub-section (1) shall enquire into it and dispose of the case as if the application or appeal had originally been made to it or, as the case may be, the proceeding bad originally commenced before it.
(3) For the trial of an offence referred to in sub-section (1), the Commission shall follow the same procedure and exercise the same powers as it follows and exercises for the trial of an offence under this Ordinance, and the provisions of this Ordinance, other than the provisions of sub-section (9) of section 22A, shall, so far as may be and with the necessary modifications, apply to such trial.
38F. Powers and procedure of the Wage Commission. - Subject to any rules of procedure which may be prescribed, the Wage Commission may, for the purpose of fixing rates of wages and determining other terms and conditions of service, exercise the same powers and follow the same procedure, so far as may be and with the necessary modifications, as the Commission may exercise or follow for the purpose of adjudicating an industrial dispute under this Ordinance.
38G. Decision of the Wage Commission to be binding on all employers. -
The decision of the Wage Commission shall be binding on all employers concerned with the decision in relation to their workers and every such worker shall be entitled to be paid the wages and governed by the terms and conditions determined by the Wage Commission.
38H. Powers of Wage Commission to fix interim rates of wages, etc. -
(1) Notwithstanding anything contained in this Ordinance, where the Wage Commission is of the opinion that it is necessary so to do, it may, by notification in the official Gazette, fix interim rates of wages and the terms and conditions of service of workers in respect of whom it is constituted.
(2) Any interim rates of wages and the terms and conditions of service to be fixed shall be binding on all employers concerned with such fixation in relation to their workers and every such worker shall be entitled to be paid wages at a rate equal to the interim rate of wages and to the terms and conditions of service fixed under sub-section (1).
(3) Any interim rate of wages and the terms and conditions of service fixed under sub-section (1) shall remain in force until the decision of the Wage Commission comes into operation under sub-section (2) of section 38C.
38I. Effect of laws and agreements inconsistent with sections 38A, 38B, 38C, 38D, 38E, 38F, 38G and 38H. -The provisions of sections 38A, 38B. 38C, 38D, 38E. 38F, 38G and 38H shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the coming into (force of the Industrial Relations (Amendment) Ordinance, 1974.
39. Settlement and awards on whom binding. -
(1) A settlement arrived at in the course of a conciliation proceeding or otherwise between the employer and the collective bargaining agent or an award of arbitrator published under section 31, or an award or decision of a Labour Court delivered under section 37 or the decision of a Tribunal under section 38 shall -

• (a) be binding on all parties to the industrial dispute,
• (b) be binding on all other parties summoned to appear in any proceeding before a Labour Court as parties to the industrial dispute, unless the Court specifically otherwise directs in respect of any such party,
• (c) be binding on the heirs, successors or assigns of the employer in respect of the establishment to which the industrial dispute relates where an employer is one of the parties to that dispute, and
• (d) where a collective bargaining agent is one of the parties to the dispute, be binding on all workmen who were employed in the establishment or industry to which the industrial dispute relates on the date on which the dispute first arose or who are employed therein after that date:

Provided that, where a collective bargaining agent or a trade union performing the functions of a collective bargaining agent under section 52 exists, the employer shall not enter into a settlement with any other trade union, and any contravention of this provision shall be deemed to be an unfair labour practice under section 15.
(2) A settlement arrived at by agreement between the employer and a trade union otherwise than in the course of conciliation proceedings shall be binding on the parties to the agreement.
40. Effective date of settlement, award, etc. -
(1) A settlement shall become effective -

• (a) if a date is agreed upon by the parties to the dispute to which it relates, on such date ; and
• (b) if a date is not so agreed upon, on the date on which the memorandum of the settlement is singed by the parties.

(2) A settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of one year from the date on which the memorandum of settlement is signed by the parties to the dispute and shall continue to be binding on the parties after the expiry of the aforesaid period until the expiry of two months from the date on which either party informs the other party in writing of its intention no longer to be bound by the settlement.
(3) An award given under sub-section (1) of section 37 shall, unless an appeal against it is preferred to the Tribunal, become effective on such date and remain effective for such period, not exceeding two years, as may be specified therein. The arbitrator, the Labour Court, or as the case may be, the Tribunal, shall specify dates from which the award on various demands shall be effective and the limits by which it shall be implemented in each case:
Provided that if, at any time before the expiry of the said period any party bound by an award applies to the Labour Court which made the award for reduction of the period on the ground that the circumstances in which the award was made have materially changed, the Labour Court may, by order made after giving to the other party an opportunity of being heard, terminate the said period on a date specified in the order.
(4) A decision of the Tribunal in appeal under sub-section (3) of section 38 shall be effective from the date of award.
(5) Notwithstanding the expiry of the period for which an award is to be effective under sub-section (3), the award shall continue to be binding on the parties until the expiry of two months from the date on which either party informs the other party in writing of its intention no longer to be bound by the award.
41. Commencement and conclusion of proceedings. -
(1) A conciliation proceeding shall be deemed to have commenced on the date on which a notice of strike or lock-out is received by the conciliator under section 28.
(2) A conciliation proceeding shall be deemed to have concluded -

• (a) Where a settlement is arrived at, on the date on which a memorandum of settlement is signed by the parties to the dispute; and
• (b) Where no settlement is arrived at -
  • (i) if the dispute is referred to an Arbitrator under section 31, on the date on which the Arbitrator has given his award or otherwise,
  • (ii) on the date on which the period of the notice of strike or lock-out expires.

(3) Proceeding before a Labour Court shall be deemed to have commenced -
(a) in relation to an industrial dispute, on the date on which an application has been made under section 32 or section 34, or on the date on which it is referred to the Labour Court by the Provincial Government under section 32 or 33; and
(b) in relation to any other matter, on the date on which it is referred to the Labour Court.
(3a) Proceedings before the Commission in relation to a dispute referred to it under section 32 or section 33 or to a dispute raised under section 34-A shall be deemed to have commenced on the date on which the reference is made to it or as the case may be the dispute is raised before it.
(4) Proceedings before the Commission or a Labour Court shall be deemed to have concluded on the date on which the award or decision is delivered under sub-section (1) of section 37.
42. Certain matters to be kept confidential. -There shall not be included in any report, award or decision under this Ordinance any information obtained by a Registrar, Conciliator, Labour Court, Arbitrator or Tribunal in the course of any investigation or inquiry as to a trade union or as to any individual business (whether carried on by a person, firm or company) which is not available otherwise than through the evidence given before such authority, if the trade union, person, firm or company in question has made a request in writing to the authority that such information shall be treated as confidential, nor shall such conciliator or any person present at or concerned in such proceedings disclose an such information without the consent in writing of the secretary of the trade union or the person, firm or company in question as the case may be:
Provided that nothing contained in this section shall apply to disclosure of any such information for the purpose of prosecution under section 193 of the Pakistan Penal Code (Act XLV of 1860.)
43. Raising of industrial disputes. - No industrial dispute shall be deemed to exist unless it has been raised in the prescribed manner by a collective bargaining agent or an employer.
44. Prohibition on serving notice of strike or lock-out while proceedings pending. - No notice of strike or lock-out shall be served by any party to an industrial dispute while any conciliation proceedings or proceedings before an arbitrator or a Labour Court or an appeal to the Tribunal under sub-section (3) of section 38 are or is pending in respect of any matter constituting such industrial dispute.
45. Powers of Labour Court and Tribunal to prohibit strike, etc.-
(1) When a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time when, in respect of such industrial dispute, there is made to, or is pending before, a Labour Court, an application under section 34, the Labour Court may, by an order in writing, prohibit continuance of the strike or lock-out.
(2) When an appeal in respect of any matter arising out of an industrial dispute is preferred to a Tribunal under section 38 the Tribunal may, by an order in writing, prohibit continuance of any strike or lock-out in pursuance of such industrial dispute which had already commenced and was in existence on the date on which the appeal was preferred.
46. Illegal strikes and lock-outs. -
(1) A strike or lock-out shall be illegal if -

• (a) it is declared, commenced or continued without giving to the other party to the dispute, in the prescribed manner, a notice of strike or lock-out or before the date of strike or lock-out specified in such notice, or in contravention of section 44; or
• (b) it is declared, commenced or continued in consequence of an industrial dispute raised in a manner other than that provided in section 43; or
• (c) it is continued in contravention of an order made under section 32, section 33, section 45 or sub-section (3) of section 46A; or
• (d) it is declared, commenced or continued during the period in which a settlement or award is in operation in respect of any of the matters covered by a settlement or award.

(2) A lock-out declared in consequence of an illegal strike and a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal.
46A. Procedure in cases of illegal strikes or lock-outs.-
(1) Notwithstanding anything contained in any other provision of this Ordinance or in any other law for the time being in force, an Officer of the Labour Department not below the rank of Assistant Director, Labour Welfare, hereinafter in this section referred to as the Officer, may make enquiries in such manner as be may deem fit into an illegal strike or illegal lock-out in a factory and make a report to the Labour Court.
(2) After completing the enquiry the officer shall serve a notice on the employer and the collective bargaining agent or the registered trade union with the dispute to appear before the Labour Court on a date to be fixed by that Court.
(3) The Labour Court may, within ten days following the day on which it receives a report under sub-section (1), after considering the report and hearing such of the parties as appear before it order the strike to be called-off or the lock-out to be lifted.
(4) If the employer contravenes the order of the Labour Court under sub-section (3) and the court is satisfied that the continuance of the lock-out is causing serious hardship to the community or is prejudicial to the national interest, it may issue an order for the attachment of the factory and for the appointment of an official receiver for such period as it deems fit, and such period may be varied from time to time.
(5) The official receiver shall exercise the powers of management and may transact business, eater into contracts, give valid discharge of all moneys received and do or omit to do all such acts as are necessary for conducting the business of the factory.
(6) The Labour Court may, in appointing and regulating the work of an official receiver exercise the powers of a civil court under the Code of Civil Procedure (Act V of 1908).
(7) If the workers contravene the order of the Labour Court under sub-section (3), the court may pass orders of dismissal against all or any of the striking workers and notwithstanding anything to the contrary contained in this Ordinance, if the Court, after holding such inquiry as it deems fit, records its finding that any registered trade union has committed or abetted the commission of such contravention, the finding shall have the effect of cancellation of the registration of such trade union and debarring all officers of such trade union from holding office in that or in any other trade union for the unexpired term of their offices and for the term immediately following:
Provided that the court may review its orders if good and sufficient cause is shown by an affected worker within seven days of such orders of dismissal.
(8) Subject to any rules made by the Provincial Government in this behalf, the Officer may, for the purpose of enquiry under sub-section (1), within the local limits for which he is appointed, enter with such assistants, if any, being persons in the service of Pakistan, as he thinks fit, in a factory where he has reason to believe an illegal strike or lock-out to be in progress, and make such examination of the premises and plant and of any registers maintained therein and take on the spot or otherwise such evidence of persons and exercise such other powers as he may deem necessary for carrying out the purposes of this section.
(9) The Officer shall have authority to call any party to such dispute to his office or secure his presence in the factory and shall also have the power to bind any party to the dispute to appear before the Labour Court.
(10) Where a party to an illegal strike or lock-out, on being required or bound under this section to appear before the officer or the Labour Court does not so appear, the Officer or Labour Court, as the case may be, may, besides taking such other action as may be admissible under this Ordinance, proceed ex-parte.
47. Conditions of service to remain unchanged while proceedings pending. -
(1) No employer shall, while any conciliation proceedings or proceedings before an Arbitrator, a Labour Court or Tribunal in respect of an industrial dispute are pending, alter to the disadvantage of any workman concerned in such dispute, the conditions of service applicable to him before the commencement of the conciliation proceedings or of the proceedings before the Arbitrator, the Labour Court or Tribunal, as the case may be, nor shall he -

• (a) save with the permission of the Conciliator, while any conciliation proceedings are pending, or
• (b) save with the permission of the Arbitrator, the Labour Court or Tribunal, While any proceedings before the Arbitrator, Labour Court or Tribunal are pending.

discharge, dismiss or otherwise punish any workman except for misconduct not connected with such dispute.
(2) Notwithstanding anything contained in sub-section (1) an officer of a registered trade union shall not, during the pendency of any proceedings referred to in sub-section (1) be discharged, dismissed or otherwise punished for misconduct, except with the previous permission of the Labour Court.
47A. Removal of fixed assets. - No employer shall remove any fixed assets of the establishment during the currency of an illegal lock-out or a strike which is not illegal:
Provided that the Labour Court may, subject to such conditions as it may impose, cause to be removed any such fixed assets for safe custody to avoid damage to such assets due to flood, fire, catastrophe or civil commotion.
48. Protection of certain persons. -
(1) No person refusing to take part or to continue to take part in any illegal strike or illegal lockout shall, by reason of such refusal, be subject to expulsion from any trade union or to any fine or penalty or to the deprivation of any right or benefit which he or his legal representatives would otherwise have been entitled, or be liable to be placed in any respect, either directly or indirectly, under any disability or disadvantage as compared with other members of the trade union.
(2) Any contravention of the provisions of sub-section (1) maybe made the subject-matter of an industrial dispute, and nothing in the constitution of a trade union providing the manner in which any dispute between its executive and members shall be settled shall apply to proceedings for enforcing any right or exemption granted by sub-section (1). In any such proceeding, the Labour Court may, in lieu of ordering a person who has been expelled from membership of a trade union to be restored to membership, order that he be paid out of the funds of the trade union such sum by way of compensation or damages as the court thinks just.
49. Representation of parties. -
(1) A workman who is a party to an industrial dispute shall be entitled to be represented in any proceeding; under this Ordinance by an officer of a collective bargaining agent and subject to the provisions of sub-section (2) and sub-section (3) any employer who is a party to an industrial dispute shall be entitled to be represented in any such proceeding by a person duly authorised by him.
(2) No party to an industrial dispute shall be entitled to be represented by a legal practitioner in any conciliation proceedings under this Ordinance.
(3) A party to an industrial dispute may be represented by a legal practitioner in any proceedings before the Labour Court, or before an Arbitrator, with the permission of the Court or the Arbitrator as the case maybe.
50. Interpretation of settlements and awards. -
(1) If any difficulty of doubt arises as to the interpretation of any provisions of an award or settlement, it shall be referred to the Tribunal constituted under this Ordinance.
(2) The Tribunal to which a matter is referred under sub-section (1) shall after giving the parties an opportunity of being heard, decide the matter and its decision shall be final and binding on the parties.
51. Recovery of money due from an employer under a settlement or award. -
(1) Any money due from an employer under a settlement, or under an award or decision of the Arbitrator, Labour Court or Tribunal may be recovered as arrears of land revenue or as a public demand if, upon the application of the person entitled to the money, the Labour Court, so directs.
(2) Where any workman is entitled to receive from the employer any benefit, under a settlement or under an award or decision of the Arbitrator, Labour Court or Tribunal, which is capable of being computed in terms of money, the amount at which such benefit shall be computed may, subject to the rules made under this Ordinance, be determined and recovered as provided for in sub-section (1) and paid to the workman concerned within a specified date.
52. Performance of functions till collective bargaining agent ascertained. - Any act or function which is by this Ordinance required to be performed by or has been conferred upon a collective bargaining agent may, until a collective bargaining agent has been certified under the provisions of this Ordinance be performed by a registered trade union which has been recognised by the employer or employers.

PENALTIES AND PROCEDURE

53. Penalty for unfair labour practices. -
(1) Whoever contravenes the provisions of section 8A shall be punishable with imprisonment which may extend to three years, or with fine which may extend to two thousand rupees or with both.
(1A) Whoever contravenes the provisions of section 15 shall be punishable with imprisonment which may extend to four years or with fine which may extend to ten thousand rupees or with both.
(2) Whoever contravenes the provisions of section 16, other than those of clause (d) of sub-section (1) thereof shall be punishable with imprisonment which may extend to three years, or with fine may extend to five hundred rupees or with both.
(3) An officer of a trade union, a workman or person other than a workman, who contravenes, or abets the contravention of, the provisions of clause (d) of sub-section (1) of section 16 shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to two thousand rupees, or with both.
(4) Where the person accused of an offence under sub-section (3) is an officer of a trade union the National Industrial Relations Commission may, in addition to any other punishment which it may award to such person under that sub-section, direct that he shall cease to hold the office of such officer and be disqualified from holding any office in any trade union during the term immediately following the term in which he so ceases to hold office.
(5) Whoever contravenes the provisions of section 47A shall be punishable with imprisonment which may extend to three years, or with fine which may extend to two thousand rupees, or with both.
(6) Nothing in this Ordinance shall be deemed to exclude the jurisdiction of a Labour Court or the Court of a Magistrate to try a case under this section if it is authorised to do so by a general or special order of the Commission.
(7) Notwithstanding anything to the contrary contained in any law, custom, usage, constitution of a trade union, memorandum and articles of association of a company or agreement, no fine paid or payable due to conviction under this Ordinance shall be debitable against the accounts of any establishment.
54. Penalty for committing breach of settlement - Whoever commits any breach of any term of any settlement, award or decision which is binding on him under this Ordinance, shall be punishable -

• (a) for the first offence, with imprisonment for a term which may extend to one year, or with fine which may extend to five hundred rupees or with both; and
• (b) for each subsequent offence with imprisonment for a term which may extend to two years or with fine which may extend to one thousand rupees, or with both.

55. Penalty for failing to implement settlement, etc. - Whoever wilfully fails to implement any term of any settlement, award or decision which it is his duty under this Ordinance to implement, shall be punishable with imprisonment for a term which may extend to one year, or with a fine which may extend to rupees five hundred or with both, and, in the case of continuing failure, with a further fine which may extend to two hundred rupees for every day after the first during which the failure continues.
56. Penalty for false statements, etc. - Whoever wilfully makes or causes to be made in any application or other document submitted under this Ordinance or the rules thereunder any statement which he knows or has reason to believe to be false, or wilfully neglects or fails to maintain or furnish any list, document or information he is required to maintain or furnish under this Ordinance or the rules thereunder, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.
60. Penalty for discharging officer of trade union in certain circumstances, etc. - Any employer who contravenes the provisions of section 47 shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five thousand rupees, or with both.
61. Penalty for embezzlement or misappropriation of foods. - Any officer or any other employee of a registered trade union, guilty of embezzlement or misappropriation of trade union funds shall be punishable with imprisonment for a term which may extend to one year and shall also be liable to a fine, which shall not exceed the amount found by the court to have been embezzled or misappropriated. Upon realisation, the amount of fine may be reimbursed by the court to the trade union concerned.
62. Penalty for other offences. - Whoever contravenes, or fails to comply with any of the provisions of this Ordinance, shall, if no other penalty is provided by this Ordinance for such contravention or failure, be punishable with fine which may extend to two hundred and fifty rupees.
62-A. Offences to be non-cognizable. - Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898), no police officer shall be competent to arrest without warrant an employer or a worker for an offence under this Ordinance other than the offence of illegal strike or illegal lockout continued in contravention of an order made under sub-section (3) of section 46A.
63. Offences by corporations. - Where the person guilty of any offence under this Ordinance is a company or other body corporate, every Director, Manager, Secretary or other officer or agent thereof shall, unless he proves that the offence was committed without his knowledge or consent or that he exercised all due diligence to prevent the commission of the offence, be deemed to be guilty of such offence:
Provided that, where a company has intimated to Government in writing the name of any of its directors resident in Pakistan whom it has nominated for the purpose of this section and the offence is committed while such director continues to be so nominated, only such director shall be so deemed to be guilty of such offence.
64. Trial of offences. - Save as provided in this Ordinance, no court other than a Labour Court or that of a Magistrate of the First Class shall try any offence punishable under this Ordinance.

MISCELLANEOUS

65. Indemnity. - No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Ordinance or any rule.
65-A. Registrar, etc., to be public servants. - A Registrar, Conciliator, the Presiding Officer of a Labour Court, the Presiding Officer of a Junior Labour Court, the member of a Tribunal, and the Chairman and a member of the Commission shall be deemed to be a public servant within the meaning of section 21 of the Pakistan Penal Code (Act XLV of 1860).
65-B. Limitation. - The provisions of section 5 of the Limitation Act, 1908 (IX of 1908), shall apply in computing the period within which an application is to be made, or any other thing is to be done, under this Ordinance.
66. Power to make rules. -
(1) The Federal Government may make rules for carrying out the purposes of this Ordinance in relation to the Commission and the Wage Commission.
(2) Except as provided in sub-section (1), the Provincial Government may, in consultation with the Federal Government, make rules for carrying out the purposes of this Ordinance.
(3) Rules made under this section may provide that a contravention thereof shall be punishable with fine which may extend to one hundred rupees.
67. Repeal and savings. -
(1) The following laws arc hereby repealed, namely:

• (a) The East Pakistan Trade Unions Act, 1965 (E. P. Act V of 1965.
• (b) The East Pakistan Labour Disputes Act, 1965 (E. P. Act VI of 1965).
• (c) The West Pakistan Industrial Disputes Ordinance 1968 (W. P. Ordinance IV of 1968); and
• (d) The West Pakistan Trade Unions' Ordinance, 1968 (W. P. Ordinance V of 1968).

(2) Notwithstanding the repeal of any law by subsection (1), and without prejudice to the provisions of section 24 of the General Clauses Act. 1897 (X of 1897):
(a) every trade union existing immediately before the commencement of this Ordinance, which was registered under any such law shall be deemed to be registered under this Ordinance and its constitution shall continue in force until altered or rescinded; and
(b) anything done, rules made, notification or order issued, officer appointed, court constituted, notice given, proceedings commenced or other actions taken under any law shall be deemed to have been done, made, issued, appointed, constituted, given, commenced or taken, as the case may be, under the corresponding provision of this Ordinance.

SCHEDULE

Public utility services. - See Section 2 (XX).
1. The generation, production, manufacture or supply of electricity, gas, oil or water to the public.
2. Any system of public conservancy or sanitation.
3. Hospitals and ambulance service.
4. Fire-fighting service.
5. Any postal telegraph and telephone service.
6. Railways and Airways.
7. Ports.
8. Watch and Ward staff and security services maintained in any establishment.

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