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SDPI
Research and News Bulletin Vol. 11, No. 1, January - February 2004 |
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| WTO and working conditions of women in Pakistan
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1. Introduction One of the most controversial arguments in the developing world today is that of the inclusion or exclusion of labour issues in the WTO agreement. These issues cover items such as labour rights and possible sanctions for failure to comply with these regulations. The WTO is a global entity, which is based on the multilateral trading system, through which the agreements are drawn. These agreements set the legal framework under which international commerce operates. Those in favor of universal labor laws advocate that weak labor standards could give exporters a comparative advantage. Conversely, the critics such as labor organizations are hesitant due to their belief that the WTO rules encourage labor exploitation, do not preserve the environment and do not restrict the growing power of MNCs. Munir Akram, ambassador to the WTO suggests that ‘including labor issues in the agreements will have little effect on human rights, instead the inclusion will act as a barrier to competing goods from low-cost developing countries'. The fact that since exports from the developing countries are labor extensive together with the fact that these countries have weak or non-existent labor standards, provides a criteria to restrict these exports on the basis of the labor standards; thus limiting their access to the markets of the developed world. 2. Legal framework Pakistan has committed itself to domestic labor policies, however, upon examining closely, one finds many gaps and discrepancies within the policy framework, even in the definitions used. As far as women are concerned, the coverage of these policies is crucial, as they do not cover the informal sector, where most of Pakistani women are employed. Pakistan's labor laws do not cover women in the informal sector, thus leaving a vast majority of the labor force unprotected and vulnerable to sudden changes in global trade movements. The Labour Force Surveys of Pakistan Although they play an active role in the Pakistani economy, the efforts of these women are almost always not recorded officially nor recognized by their families, community and state at large. There exist a variety of reasons behind the invisibility of women workers: the roles allocated to women from social perceptions and man-made divisions are believed to be unimportant and thus not included in national statistics and indicators. Although there have been attempts at modifying the definitions used in the LFS, there still remains the element of gender-bias. Also the male members of the household feel ashamed of acknowledging the economic contribution of women, as they represent their honor.3. Agriculture The rural women are treated as symbols of honour, they are not educated for fear of rebellion, and hence remain unaware of their religious and legal rights. They know very little of life beyond the household. Entrenched in such a complex trap, there is ample opportunity available for the men to completely achieve control over women's labour power.
The FAO fact sheet suggests that a woman works 12-15 hours a day on various economic activities and household chores; carrying out a variety of tasks, from crop production to post harvest operations. Their agricultural duties are termed as household duties and hence their efforts are not recognized as work. Under the male domination set up of Pakistan, it is actually the man who owns the land, it is the man who sells the output in the market, hence it is the man who is visible in the national statistics, who actually worked on the land is conveniently omitted. Agriculture supports nearly 75% and is the main female employer. The Agreement on Agriculture (AoA) advocates a reduction in tariffs (thus enhancing market access) as well as a reduction in the level of subsidies offered both for imports and exports. The reduction in tariffs has two effects. Firstly, if this injection were reduced then this would push the government into a fiscal deficit. Secondly, by having its exports reduced, Pakistan's rural economy will shrink and thus lead to a rise in unemployment. Women, as workers will be the first to feel the effect, especially since they are inadequately protected by the legal system. With no income and consequent rising inflation, these women will have difficulty in managing their domestic budget. The AoA has changed the orientation of agriculture to cash crop production; providing access to cheap imports. Consequently, the women have to work long hours to support their families; when food security is threatened almost always the woman feels the effect the most.
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4. Textiles In the textiles sector, women's role is limited to performing menial and dead-end jobs that are ill paid, repetitive and have poor career prospects. Typical working conditions that these women face take the form of exposure to toxic substances in the workforce, financial worries due to low wages, that are also irregular; vulnerability to sexual harassment, due to low-job security, which further increases their vulnerability. They also face limited occupational and skills mobility, thus they remain stuck in their jobs. The laws specific to the textiles sector cover most of the activities of the workers and labor-management affairs, but do not provide substantial legal cover for child labor, contract labor and the informal sector. There exist no trade unions, which can serve the interests of these unprotected women, there is no concern in protecting these women by factory owners and key decision makers; moreover the women themselves lack the capability to organize themselves as a sole entity which is assertive enough to both raising and solving important issues. The Multi-Fibre Agreement (MFA), a key area of the WTO, governs global trade in the textiles sector. Pakistan is heavily dependent on its textile sector for export earnings. Although it represents nearly 53% of Pakistan's export portfolio, its share in total global exports is a mere 3%. Research undertaken by the Working Women Worldwide organization suggests that ‘the changing rules of world trade means less state regulation and more power for multinationals' . This is especially problematic if the states involved are weak institutionally or lack the capacity to protect their country from exploitation, more so if they lack the willingness to protect their country. The MFA phase out will provide the MNCs greater freedom of movement between countries, more so they can move to countries where there exist cheap raw materials, low wages and lack of trade union rights, in essence their feasibility lies in countries which are unable to protect their workforce. Although they represent more than half of the work force in the textiles sector, women are unequally paid, they work in hazardous conditions with no concern for their health, they are not provided women-friendly working conditions and are often stuck in menial jobs, they may also face harassment at work by their employers or colleagues. There exists ample scope for exploitation by the MNCs, as the process of globalization ultimately transfers the power making ability to the MNCs from the governments of the LDCs. When these powerful MNCs decide to quit operations in a country for another on the basis of cheaper labor with less state intervention, what will happen to the women workers? For those women who have left the traditions of their families and castes in favour of working in the factories, will they be able to return to their
families after losing their source of income? What will become of the female-headed households who will lose their only source of income? Pakistan needs to seriously address these issues as only those countries who have addressed these questions and protected their workforce that can reap the potential benefits of globalization. Possible solutions Final thoughts
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