Much to the relief of industrialists, all inspections relating to labour levies have been frozen with immediate effect. Taking serious notice of registration of cases and issuance of warrants of arrests against industrialists by officials of Labour Department, Sindh Chief Minister Qaim Ali Shah on Friday ordered that the notices should be frozen, and cases registered against industrialists be withdrawn.
He also ordered that there would be no further inspections of industrial premises by inspectors/officials/officers of the Labour Department till such time as the issue is streamlined by taking all stakeholders on board. He has convened an emergency meeting to be organised by the Board of Investment, Sindh, along with the Labour Department and members of business community to find an amicable solution to the issue acceptable to all stakeholders.
The Chief Minister's orders have come in the wake of the concern expressed by Site Association of Industry (SAI) Chairman Engr M A Jabbar. He had highlighted the issue in a letter sent on May 7 to the Secretary, Ministry of Labour, Sindh, pointing out that Labour inspection officers were harassing industrialists in Site area by enlisting complaints in the Labour courts for violating Section 7(2) of Standing Order (SO) 1968. He highly appreciated the timely intervention of the Chief Minister and thanked him for providing relief to the harassed industrialists.
Zubair Motiwalla, Advisor to Sindh Chief Minister, played an important role in seeking this relief for industrialists. Complaints in the Labour courts result in the issuance of warrants of arrest. Matters related to Federal Bureau of Revenue (FBR) of considerable amounts in litigation have never been processed to issuance of arrest warrants. "We amicably resolve the issue in highly conducive climate," he said.
Jabbar regretted that Labour levies related departments were contributing to the development of anti-business climate in the province and, in specific in Karachi, the industrial and economic hub of Pakistan. The actions by the functionaries in total disregard of the present ailing conditions of the economy could be considered as anti-government, spoiling the efforts of the government in improving the perception and image building of the country for attracting the much required investments.
The domestic investors in the green field are staying away and many industries have closed down, reduced employment and are seriously thinking of rolling back the working of industry in the present situation.
Jabbar said that notices by labour levies related departments under 2002 Land Revenue Act by hiring private persons to raid the companies and encroach upon their privacy and stay long hours demanding payments under highly objectionable mode and manner amounts to coercive and extortionist method of all types one could name.
The warrants of arrest were served under section 7(2) of SO 1968. This section relates to penalty of Rs 100 and does not match the efforts of involving police, court and labour department for chasing the industrialists on the charges which in any case would not be beyond a fine of Rs 100 by the labour court. This is considered a threat notice and a bureaucratic terror tender to tame the industrialists to dance to their tune which is manifested by such warrants of arrest through police.
Jabbar said that Industrial Relations Act (IRA) 2008 has replaced IRA 2002 and the same has replaced SO 1968. One could see the recklessness of powers being misused. In this situation we better hand over our industrial enterprises to these functionaries so that they could play havoc, which they have, with PIA, Steel Mills, Karachi Shipyard and Engineering Works, Pakistan State Engineering and all other economic prides of the country which have degenerated due to the involvement of public sector management.