Two main responses are currently discussed in social and economic policy, echoing the broader tension between development and growth (and between human and state security). One, older, position stresses public action for decent work as development, along with employment creation and economic growth. The alternate, neo-liberal, position is a market approach, with the priority on employment and growth.

A third, pragmatic, position attempts to build a consensus around key concerns of both positions - holding the Declaration non-negotiable; but with collective bargaining over additional universal minimum labour standards, as aspects in decent work that are complementary (such as minimum wage) to the core labour rights; and seeking innovative private and public provision towards cost-effectiveness of implementing standards.

"Fundamental rights, still a fundamental fight," as an ILO study puts it. Hence this paper presents specific proposals for an effective policy on realising universal labour rights in Pakistan. These begin with a binding framework, with details to be filled in through subsequent negotiations between workers, enterprise owners and government.

These proposals do implicitly point towards strengthening specific aspects of current legislation, most notably towards eliminating discrimination between and among enterprises and workers.

Reclaiming Development

Government and its major donors propose weaker labour standards for small enterprises so as to enhance employment growth. Our judgement on a presumed "growth trap" is as follows. First, there is little evidence to support the supposed negative link between labour legislation and small enterprise growth. Second, acknowledge as rights rather than entitlements, core labour rights in the Declaration must be realised universally rather than selectively. Second, as the largest employer, small enterprises cannot be exempted from application or enforcement of minimum labour standards (corresponding to core rights but also including complementary standards such as minimum wages). Third, there is much room in revenues to raise labour costs, but ways can also be found to minimise the burden upon enterprises.

Since enterprise data conceals informality of employment within the formal sector, the issue of exclusion in labour protection is even more urgent. Consider the fact of massive decline in employment registration under the Factory Act - across the 90s, such (formal) employment nearly halved even as the number of registered and working factories increased, and total employment in manufacturing rose by more than 30%.

Small enterprise growth is a natural focus for cost-effective expansion of employment. But any enterprise per se, and specially its growth, is a contribution of both capital and labour as real people and not just abstract factors of production. Competitiveness of enterprises must be real rather than illusory by shifting costs upon workers - capital too must contribute by sharing profits and increasing investments for higher labour productivity. When enterprise revenues are too meagre to support decent jobs, then such enterprises should not survive by exploitation of workers.

Politics of the economy therefore needs to get back on the labour and economic policy agenda (displacing the narrow, technocratic discourse of labour markets that privileges capital). The central issue then is social arrangements for equitable shares between labour and capital. Some of these arrangements are reflected in the existing, broad fiscal system of taxes and expenditures. These are quite inadequate - of which mass poverty is one outcome. It is appropriate to seek improvements through enterprises, with shared contributions and benefits of both labour and capital. These arrangements have to be systemic rather than be ad-hoc reliance upon the philanthropy of capital, local or international (which includes donors).

The Declaration and the national Constitution are compelling and complementary foundations of social as well as economic policy. Hence these provide the framework for public and private action that rests upon rights to work and rights at work. Amendments to legislation and implementation should then adhere to the following principles of policy:

• Universality of core labour rights
• Comprehensiveness of minimum labour standards in design and application
• Simultaneity in design and application of standards
• Tri-partite participation in innovative design and implementation of standards

These principles need some discussion, including the need for reformed and new institutions for an effective labour policy.

Recent notes available from the Pakistan Institute of Labour Education & Research (piler@cyber.net.pk)

Does Labour Regulation Hinder Small Enterprise Growth? (published in Asia-Pacific Research Network Journal)

A Special Labour Policy for Small Enterprises? (published in Asia-Pacific Research Network Journal)

Contested Donor Approaches to Labour Regulation

Realising Universal Labour Rights

Public Policy for Old-Age Support

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