PAKISTAN: More than 26000 employees of Pakistan Telecommunication were denied wages increases as announced by the government

Dear friends,

The Asian Human Rights Commission (AHRC) has received information that gross violations of labour laws, retrenchment and coercive methods against the workers were witnessed in Pakistan Telecommunication Company Limited after its 26 percent shares were sold to a foreign based company. In the recent days, following a strike at Pakistan Telecommunication (PTCL) over 530 employees have been terminated and suspended from their jobs and thirty-five union leaders have been charged under anti-terrorism laws. The victimising was started after the protests from workers for demanding increase in wages as according to the announcement of government to increase of 50 percent in basic wages. The PTCL was bound to add the 50 percent increase in basic wages as according to the agreement signed at the time of PTCL’s privatization in 2005 and in violation of the PTCL Re-Organization Act 1996 Clause (35) & (36).

The 35000 workers, out of total numbers of 61000, lost the job through the coercive methods by the management, who was privatised in 2005 when a UAE based company purchased the 26 percent of the shares of PTCL, during past four years. The management has stopped the annual bonuses for more than 2,000 employees and refused to pay wages to more than 500 others, according to the Pakistan Telecommunication Employees Union. The secretary general of the union was also terminated from the job.

The federal minister for labour promised before the workers in September that within three days their demands of increase in basic would be met but he was allegedly stopped not to intervene in the matters of company where a foreign company has investment.

CASE DETAILS:

On April 2006, the Government of Pakistan sold 26% shares and control of their largest telecommunication company Pakistan Telecommunication Company Limited (PTCL) to Etisalat, UAE. Etisalat agreed that all the 61000 PTCL workers would enjoy the same wages as public employees. Their wages would be increased at the time of government notification and Etisalat would respect all labour laws.

PTCL management team stated that none of the workers would lose their jobs after privatisation and surplus workers would be sent to countries where Etisalat operates. Yet in four years, over 35000 workers have lost their jobs, 250 have been suspended and another 280 terminated. Moreover, thirty-five union leaders have been charged under anti-terrorism laws. All this for demanding a wage increase according to the agreements signed at the time of PTCL’s privatisation in 2005 and in violation of the PTCL Re-Organization Act 1996 Clause (35) & (36).

After a record price hike in June 2010 and under immense working-class pressure, the Pakistan Peoples Party (PPP) government announced a 50 percent increase on ‘basic’ pay. But Etisalat did not implement the wage increase at PTCL. Although the PTCL revenue for 2009/2010 stood at Rupees 59.37 billion, this legal demand requires approximately rupees one billion per annum.

When all the four main PTCL unions united and demanded in writing that management must respect the agreement, their demand was ignored. So, the unions decided to organise a national strike for two hours each day on 2 August 2010 in order to press for the wage increase. All 26000 workers acted positively and thus the workers at PTCL escalated the action to a total strike on 16 August instant.

PTCL workers deserved 50 percent increase on their basic pay as of June 2010 under the law. Following a strike that was brutally suppressed by the government, PTCL management offered a 30 percent wage increase with another 20 percent increase linked to worker productivity by December 2010. Yet management’s arrogant attitude is “The productivity of a worker becomes zero when they are active in unions”.

The telecom sector was nearly paralysed because of the complete strike and thousands of telephone lines were out of order. But PTCL management refused to dialogue with the unions and discuss their demands. Instead, during the strike, PTCL advertising increased tenfold and it was no accident that PTCL’s mobile service blanketed their ads continuously over the private television channel. The PTCL website http://ptcl.com.pk/mediac.php?NID=132 reveals at least 139 print designs of products advertised in the media. Hence, the media least bothered to report on the strike and massive worker demonstrations.

On the 17th day of the strike i.e. 3 September 2010, the striking union leaders met Mr. Khurshid Shah, the Federal Minister of Labour to intervene and end the strike. The labour minister told them that within three days the main demand to increase a 50 percent wage would be met. At the strike camp, the union leaders happily announced that workers could go home, that the demands would be met soon.

However, PTCL management opted to spend rupees 350 million and bribed the police and other officials to proceed with a crackdown of the legitimate peaceful strike of low-paid employees. By the evening of 3 September, hundreds of policemen were mobilised to attack the strike camp. Mr. Faisal Memon, Superintendent of Police told that constables responsible for the subsequent beating of worker leaders make sure that the resulting injuries should be severe enough so none should be able to walk to jail.

Dozens of strikers were rounded up and brought to the police station. Over 50 were arrested, with three central leaders booked under anti-terrorist laws and 35 others booked under 7ATA (Anti Terrorist Act). Arrests continued for the next 24 hours as workers home were raided. Several workers were arrested at police check posts in different parts of the city. Yet, with the strike crushed, there was a little news of the brutal events by Pakistan’s “independent” media.

PTCL workers were forced to sign a statement disassociating them from the strike as a condition for receiving their wages. According to both national labour laws and practice, a referendum for recognising union collective bargaining should be held every two years. But, during the last 12 years, only three referendums have been held in PTCL: the first in 1998; the second in 2004, under General Musharaf’s dictatorship; and the third in 2010.

PTCL management has always interfered in the referendum process by using all its resources to oppose a positive outcome. Even the National Industrial Relation Commission, the body that conducts the referendum, is intimidated. Every year the workers have to go on strike in order to push management into accepting their demands. And every year, management uses a variety of repressive measures before finally agreeing to some demands. The only unique aspect of the process in 2010 is that management’s response was even more brutal. This was possible because of police complicity.

Since the September 2010 repression of the workers struggle, PTCL management has stopped the annual bonuses for more than 2,000 employees and refused to pay wages to more than 500 others. Mr. Hassan Muhammad Rana, Secretary General of Pakistan Telecom Employees Union, and several other leading union activists were unlawfully dismissed. Approximately another 250 employees have been terminated in clear violation of Pakistan Labour Laws. The National Industrial Relation Commission suspended the termination orders and declared these unfair labour practices, but management has not accepted these orders.

On 5 November 2010, unions of PTCL, leaders of the National Trade Union Federation (NTUF) and the Labour Party Pakistan conducted a joint meeting and agreed the following:
to organise a Multi-Party PTCL Workers Solidarity Conference on 25 November 2010 at Lahore

 

• to organise a Public Meeting of PTCL workers, trade unions and activists from political parties on 3 December 2010 at Lahore;
• to demand the reinstatement of the 530 terminated and suspended PTCL workers;
• to demand for the withdrawal of false cases against worker leaders;
  to demand for a 50 percent wage increase with payment of the agreed-upon bonuses and
• to demand for the renationalisation of PTCL workers and to revive their confidence 

  ADDITIONAL INFORMATION:

  Following the crushing of a 2005 strike against the privatisation of PTCL, when the Musharraf military dictatorship ordered the army to occupy all the telephone exchanges across Pakistan, Etisalat won management control through the purchase of 26 percent shares. The deal between the dictatorship and Etisalat has been recently evaluated as “unclean” by the Chief Justice of Supreme Court of Pakistan.

  Most of Etisalat’s lucrative promises at the time of privatisation — to bring in new investment, technology, training, and with no job loss, in fact creating new jobs, better services and reduced rates for customers — have not been realised. Etisalat also forced the government to accept payment in 10 instalments. Before privatisation the PTCL was one of the most profitable public sector institutions with an average annual profit of over rupees 30 billion.
  Now, Etisalat wants to purchase 25 percent more shares and take total control over the institution while breaking the back of the workers. In 2009/2010, the PTCL total revenue reached nearly rupees 60 billion yet management claims a net profit of only rupees 9 billion. It is hard to believe that profitability has declined. At the time of the privatisation total revenue was rupees 65 billion and net profit was nearly 30 billion. Further, in 2005, PTCL employed 61000 workers while today there are less than half.

  SUGGESTED ACTION:
  Please urge upon the authorities to stop violence against the striking workers and fulfil their basic demands and respect their labour rights and right to strike which are guaranteed by the constitution of Pakistan.

  The AHRC is writing a separate letter to the UN Special Rapporteur on the Question of Labour Rights calling for immediate intervention into the case.

 

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