1

LABOR UNION MANAGEMENT

A CASE STUDY OF
WATER AND POWER DEVELOPMENT AUTHORITY
(WAPDA)

Submitted to:
Mr. Farhan Azmat Mir
Assistant Professor
Bahauddin Zakriya University, Multan, Pakistan
E-mail: farhanmir_99@hotmail.com

Submitted by:
Adnan Maqsood
Gull Chani
Umer Rasool Khan
Tayyaba Mushtaq
Sehrish Gaffar
M. Asad Saleem
Dilawar Hafeez
Humayoon Askary
Johar Hussain
Bukhtawar Mehfooz
Hafiz Akram

Case Study: Labor Union Management On WAPDA

(MB-12-57)
(MB-12-60)
(MB-12-46)
(MB-12-40)
(MB-12-58)
(MB-12-10)
(MB-12-28)
(MB-12-14)
(MB-12-42)
(MB-12-11)
(MBE-09-52)

EXECUTIVE SUMMARY
A labour union is an organization based on membership of employees in various trades, occupations
and professions, whose major focus is the representation of its members at the work place and in the
wider society. It particularly seeks to advance its interest through the process of rule-making and
collective bargaining. The present study basically aims to understand how the labour union operates
particularly in WAPDA, which is one of the largest organizations in Pakistan. In this regard, data
was also collected through interviews from the members of the labour union of WAPDA. The
results of the study indicate that these unions play a major in not only raising their voices for the
benefits of its employees but also play a significant role in decision making process of the
organization.
1. INTRODUCTION
Light is life, and electricity has become one of the essential needs of the modern world. It has
brought with it innovations which have worked many wonders in our lives which now seem
impossible without it. Electricity powers our lights, provide heating and energy for electronic
appliances and a host of essential services which we now take for granted. However, electricity has
much more important aspects because it is a fundamental feature of all matter. Electricity is the
force that holds together the molecules and atoms of all substances. Economic development is very
closely and directly linked with energy development (Burke, 2004). It is one of the basic
infrastructure through which development in industrial, commercial, agricultural and residential
sector, as also in transport can take place.
1.1 WATER AND POWER DEVELOPMENT AUTHORUTY (WAPDA): THE CASE
UNDER CONSIDERATION
In this regard, WAPDA, the Pakistan Water and Power Development Authority, was created in 1958
as a Semi-Autonomous Body for the purpose of coordinating and giving a unified direction to the
development of schemes in Water and Power Sectors, which were previously being dealt with, by
the respective Electricity and Irrigation Department of the Provinces. Since, October 2007, WAPDA
has been bifurcated into two distinct entities i.e. WAPDA and Pakistan Electric Power Company
(PEPCO). WAPDA is responsible for water and hydropower development whereas PEPCO is

Case Study: Labor Union Management On WAPDA

vested with the responsibility of thermal power generation, transmission, distribution and billing.
WAPDA is now fully responsible for the development of Hydel Power and Water Sector Projects.
The Charter of Duties of WAPDA is to investigate, plan and execute schemes for the following
fields: Generation, Transmission and Distribution of Power.

Irrigation, Water Supply and Drainage.

Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.
Flood Management.
Inland Navigation.

Thus, WAPDA is one of the largest employers of human resources in Pakistan. Over the years
WAPDA has built-up a reservoir of Technical know-how and expertise which has made it a modern
and progressive organization.
1.2 DESCRIBING THE TRADE UNIONS:
Trade unions are associations of workers formed and registered under Industrial Relations
Ordinance under several restrictive conditions. Foremost is the condition that restricts its
membership only to workers actually employed in the establishment or the industry concerned
though it allows one-fourth of its executive body members to be from outside the establishment.
Under the law, trade union cannot operate unless it has been certified as Collective Bargaining
Agent. The law also restricts registration of sector- based trade unions: workers of a particular
sector, i.e. textile, employed at different establishments in different locations cannot form a single
union.
The number and strength of the trade unions have diminished considerably over the years due to
increasingly restrictive legislation imposed by the state. The reasons for weak and ineffective trade
unionismaside state interventionlisted by analysts, include internal fragmentation, lack of
educated cadre and committed leadership, lack of input from enlightened elements of civil society,
ethnic and sectarian divide in society, and globalization of economy. Trade unionism, limited to the
formal sector, has not been able to achieve the unifying force to give it a sense of direction and
endow it with political power. It has been further weakened by the process of privatization since the
last decade.
Case Study: Labor Union Management On WAPDA

1.3 LABOUR UNIONS IN PAKISTAN: AN OVERVIEW

Labor law in Pakistan defines trade union as a combination of workmen whose primary purpose is
to promote and defend workers rights and interests in an industry or establishment.
The right to join association is guaranteed under article 17 of the Constitution of Islamic Republic
of Pakistan, which says, Every citizen shall have the right to form associations or unions, subject
to any reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan,
public order or morality. Article 17 of the Constitution not only guarantees freedom of association
but also collective bargaining as a fundamental right.
Keeping in view this provision, labour law in Pakistan allows formation and joining of trade
unions/associations to both the employers and the employees. There is a special law in Pakistan for
trade union registration and settlement of industrial disputes i.e., Industrial Relations Act. After
passage of 18th Constitutional amendment, labor is no longer a subject on concurrent list i.e. central
government can no longer legislate in labor related matters. Though provinces are allowed to
legislate in labor matters now, yet only Punjab province has enacted its Punjab Industrial Relations
Act 2010 so far. The other three provinces and federal capital territory are still in the process of
consultation on new legislation.
Workers are entitled to join a union without previous authorization; however, they can become
members of only one union at a time. If a worker joins more than one union at a time, his earlier
membership will get cancelled. Moreover, both workers and employers have the right to join
federations and confederations, which have the right to affiliate with international organizations.
Having said this, it is significant to mention the role of CBA (Collective Bargaining Agent.) This
can be described as a trade union, which is the elected agent of workers in an establishment. A
collective bargaining agent is elected after holding a secret ballot election if there is more than one
union in an establishment.
1.4 LABOUR UNIONS IN WAPDA:
Since WAPDA is one of the largest employers of human resource in Pakistan, it therefore has two
labour unions namely All Pakistan WAPDA Hydro Electric Workers Union or more commonly
known as HYDRO UNION and PEGHAM UNION. In this regard, one of the key point to
Case Study: Labor Union Management On WAPDA

remember is that the Hydro Union has recently won referendum against Pegham Union with 45000
lead thus becoming the CBA which was announced by National Industrial Relation Commission
(NIRC) under the section 19 (9) C of IRC Act 2012. Notably, it is also significant to mention that
Hydro Union has been in power in WAPDA for the last 40 years thus taking care of its members
and working for the betterment of its employees. For instance, some of the steps that Hydro Union
has taken for the improvement of its workers are as follows:

Established seven labour halls in regions where temporary residence and refreshment for

employees is free.
Different, free of cost computer courses are run for its employees.
Provides funds such as widow fund and accidental fund.
Issues credit with no interest.
Marriage grant is given for the employees children.

On the other hand, PEGHAM Union is not only working in WAPDA but is also operational in
Pakistan Railways, Pakistan International Airlines (PIA), and Pakistan Telecommunication Limited
(PTCL). This union became CBA for only three months as a result of 18 th amendment under the
constitution of Pakistan.
2. RATIONALE:
In Pakistan, there are two point of view about the labor union organization. First, positive and
second negative. But in case of labor union or other union have a negative perception in general
public mind. In General Public mind, they thought that union doesnt work efficiently. But in this
study, we are proofing that union has also a positive aspect, they work for the betterment of the
employees and they do not allow to Government to those actions that directly impact on the
employees. As already mentioned above, trade unions are organizations of workers that seek
through collective bargaining with employers to:

Protect and improve the real incomes of their members

Provide or improve job security

Protect workers against unfair dismissal and other issues relating to employment legislation

Case Study: Labor Union Management On WAPDA

Lobby for better working conditions

Offer a range of other work-related services including support for people claiming
compensation for injuries sustained in a job

Hence, keeping in view the above mentioned facts, the aim of this case study is to comprehend the
functioning of labour unions in WAPDA.
3. RESEARCH QUESTION:
What is the focal point of present study in understanding the role of labour unions particularly in
WAPDA?
4. LITERATURE REVIEW:
Akteruzzaman (2006) says that labor unions as Labor unions are voluntary associations of workers
to promote and protect their interest by collective endeavor and constitute an integral part of the
relationship between the employees and employers. Whereas, Gomper (2009) has given more
comprehensive definition in a way that labor union is a group of workers who have organized in
order to pursue common work-related goals, such as better wages and benefits, safer working
conditions, and greater job security. By concluding all definitions we can say that labor union is
Organization whose membership consists of workers and union leaders, and whose principal
purposes are to negotiate wages and working condition terms, regulate relations between workers
(its members) and the employer, take collective action to enforce the terms of collective bargaining,
raise new demands on behalf of its members, and help settle their grievances.
Donas (2005) says that unions adopt two means to fulfill their goals. First and foremost is through
collective bargaining with the employer being as a representative of the employees. The second way
they adopt is through efforts to influence government legislation. Unions are working both in
public and private sector organizations to protect the rights of employees.
In Indo-Pak, as reported by Bawa and Hashmi (2010), the concept of collective labor was
introduced by Malik Gokhale which was given legal identity through the introduction of Trade
Union Act 1926. At that time, two most strong unions working under the influence of National
Congress and Socialist Party were Indian Trade Union Congress (INTUC) and Hindustan Mazdur
Case Study: Labor Union Management On WAPDA

Sabha (HMS). After the inception of Pakistan, the first trade union established in Pakistan was
Pakistan Trade Union Federation (PTUF) having ties with INTUC and Mirza Ibrahim as its first
President.
5. BACKGROUND OF THE STUDY:
The present study focuses on understanding the role played by the Hydro Union against the
privatization of WAPDA and the cancellation of order of free units for its employees. In this
context, it is also important to recognize the primary objective of privatizing WAPDA. Thus, it was
argued that governments have grown too fat to effectively handle the delivery and provision of
public services including WAPDA. Furthermore, it was asserted that the decline in the quality and
performance of public sector services was largely due to politicization. Moreover, it was argued
that these departments also suffer from bureaucratic irregularities, official-arrogance, and corrupt
and socially irresponsible practices which cause major obstacles to efficient provision of services.
According to the proponents this could be put to an end by de-bureaucratization, deregulation, and
involving the private sector in the provision of public services. Privatization was therefore seen as a
solution for these ills as, according to them, private concerns are more efficient in production of
goods and in service delivery.
However, one of the most important recipients of this kind of change was the workers of WAPDA,
especially the ones who were shifted from WAPDA to PEPCO through an executive order.
Moreover, designations were changed (e.g.at the executive posts MBA graduates were hired),
seniority levels were revised and employees between scale 17-20 were given options.
This finally led to an active resistance that came from employees in form of protests including sit in
front of the parliament house Pakistan. WAPDA Hydro Electric Central Labour Union thus
launched protest campaigns against privatization of WAPDA. Union members took out processions
and held rallies in different cities of the country from time to time to urge the government to
discontinue from privatizing the organization. The slogan-chanting workers urged the federal
government not to privatize profit-earning organizations like WAPDA at the directive of the World
Bank and IMF.
Furthermore, they criticized the policies of downsizing and rightsizing of the government which,
according to the union leaders, have caused an unprecedented unemployment and lawlessness in the
Case Study: Labor Union Management On WAPDA

country. The union leaders and workers were determined to resist the privatization of WAPDA's
regional organizations.
In this regard, when some of the union members were interviewed, in order to support their
arguments, they quoted the example of Karachi Electric Supply Company (KESC). They compared
the working of KESC with that of WAPDA in Punjab and concluded the following:

Punjab
KESC

Line Losses
20% - 25%
35% -40%

Technical Issues
8% - 10%
12% - 15%

Theft
9% - 12%
13% - 16%

Hence, the union workers not only raised their voices against the privatizing of the organization but
also indicated that it would not bring any good to the country also.
6. CONCLUSION:
Keeping in view the above mentioned facts, it can be concluded that labour union in WAPDA
played a key role in stopping the government from privatizing one of the largest civil organizations
of the country. In this regard, they took immediate and forceful actions to ensure the betterment of
not only its employees but also ensured the progress of the country. Labor union of WAPDAs
Hydro play a positive role in this issue, Hydro prove that if labor union play in effective way than
union dont give chance to anyone take negative action against employees. Hydro has secured the
employees interest in result of free supply and restrict the government do not take action to
privatize the largest civil department of Pakistan.

Case Study: Labor Union Management On WAPDA

REFERENCES

Mr. Rana Asghr

Divisional Chairman
Hydro WAPDA
Mr. Saeed Sial
Sub-divisional Chairman
Hydro WAPDA
Mr. Muhammad Rashid
Sub-divisional Vice Chairman
Hydro WAPDA
Websites:
Mepco: www.mepco.com.pk
Wapda: www.wapda.gov.pk

Case Study: Labor Union Management On WAPDA