' JUSTICE (RETD.) TANVIR AHMED KHAN (CHAIRMAN).-- A reference was made by the Federal Government on 9-10-2002 under section 22EE of Industrial Relations Ordinance, 1969 (since repealed) whereafter Industrial Relations Ordinance was promulgated and section 54 of it cater the same for the declaration and determination of the Establishments of UBL as one CBU. The learned Member issued .Notices to the Provincial RTUs and RITU to submit the lists of trade union registered with, them at local level and Industry-wise with NIRC respectively. The Registrar of Trade Unions N.-W.F.P., Sindh, Balochistan, Punjab and Islamabad Capital Territory as well as Deputy Registrar NIRC submitted the requisite lists of trade unions registered in the establishment of UBL.
The detail of registered trade unions is as under:-- N.-W.F.P.
(1) Workers Union UBL Mardan Zone.
(2) Employees Union; United Bank Kohat Zone.
(3) Employees Workers Union UBL Nowshera Zone.
(4) Employees Union UBL Peshawar Zone.
(5) Workers Union UBL Nowshera Zone.
(6) UBL Staff Union UBL Abbottabad.
(7) Labour Union UBL Mardan'Zone.,
(8) Labour Union UBL D.I. Khan Zone.
(9) Employees Union UBL D.I. Khan Division.
(10) Employees Union UBL Mingora Swat.
SINDH.
(11) United Bank Labour Union Karachi
(12) United Bank Workers Front Karachi.-
(13) United Bank Mazdoor; Ittehad Union Karachi.
(14) UBL Employees Union Karachi.
(15) United Bank Staff Union Hyderabad.
(16) United Bank Employees Union Larkana.
(17) United Bank Employees Front Larkana.
(18) United Bank Ltd. Employees Union Jaccobabad.
(19) United Bank Ltd. Staff Union Mirpurkhas.
(20) United Bank Ltd. Staff Union Nawabshah Zone.
(21) United Bank Ltd. Staff Union Badin Zone.
(22) United Bank Ltd. Employees Union Badin.
(23) United Bank Ltd. Employees Union Sukkur Zone.
BALOCHISTAN
(24) United Bank Employees Union.
(25) United Bank Ltd. (Turbat Zone) Employees Union.
PUNJAB
(26) United Bank Employees Union, Lahore.
(27) United Bank Workers Union, Lahore.
(28) UBL Employees Union Multan Region.
(29) UBL Staff and Workers Union Sialkot Region, Gujranwala.
(30) UBL Workers Union Wazirabad Zone.
(31) UBL Employees Union, Chakwal Zone.
(32) UBL Labour Union Chakwal Zone.
(33) UBL Employees Union, D.G. Khan.
REGISTERED WITH NIRC.
(34) UBL Employees Federation of Pakistan.
(35) United Bank Employees Union Rwp/Ibd Zones.
2. Notices were issued to Registered trade unions and management so as to obtain their comments/suggestion for consideration in carving out CBU or CBUs which would not only be just, feasible and to the satisfaction of the Commission but also effectively protect the rights of the workers and promote industrial peace in the establishment of UBL.
3. During the proceedings respondents Nos.1 to 10, 12 to 25 and 30 to 33 did not enter appearance despite registered notices as such they were proceeded ex parte vide order, dated 9-5-2003. The remaining respondents submitted reply/comments. However, later on Ch. Waqar Ahmed learned Advocate requested the setting aside of the ex parte order against the above mentioned respondents which was allowed.
4. The applicant Bank while praying for the single CBU contended that the seven Wage Commissions were constituted and awards were given but the Federal Government has now no intention further to constitute Wage Commission. In the absence of Wage Commission each of the nationalized Banks may enter into negotiation and conclude 'settlement keeping in view their financial position with the CBA. Secondly the applicant Bank contended that at present there are uniform terms and conditions of service in the Bank throughout the country. If there is large number of local registered trade unions each claiming to be CBA in its own area and that would mean serving of different Charter of Demands. The Establishment would in this eventuality have to negotiate separate terms and conditions of service for each CBA. In this manner the terms and conditions of service of the Bank will be disrupted. This course of action will create heart burning and industrial discontentment which would not be a step for the welfare of the workers and Establishment. The applicant Bank further contended that section 54 of the Industrial Relations Ordinance, 2002 (hereinafter referred to as Ordinance) was inserted in the Ordinance to arrest mushroom growth of trade unions by declaring establishment as one CBU or more CBUs by the Commission on an inquiry and on being satisfied with the arrangements to safeguard the interest of workers employed in the establishment or group of establishments belonging to same employer. The applicant Bank supported its stance by referring to CBU in Muslim Commercial Bank, Habib Bank Limited and National Bank of Pakistan. The applicant Bank further argued that with promulgation of Industrial Relations Ordinance, 2002 definition of establishment has been materially changed by the legislature and at present the law itself shaped the establishment and all its branches into a single CBU if their profit and loss and balance sheet are common. The management of the Bank submitted balance sheet and profit and loss statement as evidence to show that the establishment of UBL has common balance sheet, profit and loss account and therefore has one establishment. The applicant management has further submitted that the philosophy of CBU is based on the universal principle of "unity and strength"' of the workers as their joint efforts would be more fruitful for cause of workers.
5. The respondents unions also advanced heir arguments while giving comments/suggestions for disposal of this case.
6. At the very outset UBL Staff and Workers Union Gujranwala Region Sargodha (respondent No,29) argued that the unions have successfully negotiated the settlements during the currency of the Wage Commission. Therefore, the non-constitution of the Wage Commission would be immaterial.
The respondent No,29 further submitted that Zonal structure of the establishment has been abolished and now establishment of UBL has been divided into Regions. It is argued that hire and fire power vested with Regional Heads who are also the attorneys of the Bank to enter into settlement on its behalf. It will be proper and feasible to 'raise the industrial disputes at local level and also settle at local level, while the raising of industrial dispute at the national level will affect the working of the whole establishment. However, the consensus at the national level where it is necessary is made through the industry-wise federation registered with NIRC. All the local unions are the members of the said federation. This course of action has been functioning successfully for the many years in bargaining between the workers and the applicant bank. The Respondent No,29 further submitted that despite the different CBAs functioning in the establishment there is uniformity in the terms and conditions of service of employees of UBL throughout the country, so the formation of one CBU will not do magic or to add comfort in the service of the Bank. It was further stated that at present only few unions are functional while majority of them have become non existent. At present there is one Federation and one Industry-wise trade union registered with the Commission and about 7 unions are functioning at Regional Level. So the contention of the applicant Bank that there are large number of unions at local level is incorrect and misleading.
Respondent has prayed for dismissal of reference of the Federal Government and suggested CBUs at regional level in the following manner:--
(i) Karachi Region (ii) Quetta Region (iii) Hyderabad Region (iv) Multan Region (v) Lahore Region
(vi) Faisalabad Region (vii) Gujranwala Region (viii) Islamabad Region and Peshawar Region.
' The other contesting respondent unions i,e, respondents Nos.26, 27, 36 and 37 adopted almost similar arguments for dismissal of the reference and declaration of CBUs at Regional Levels.
7. I have heard the argument of the learned counsel for the parties at quite some length.
8. Mr. Faisal Ghani appearing on behalf of the bank reiterated his earlier stance as laid down in the reference and comments submitted. The learned counsel for the applicant bank however submitted that section 54 of the Ordinance envisaged certain parameters to be considered while declaring CBU or CBUs. He also argued that definition of establishment has materially.Been changed and now the wisdom of Legislature has chosen the course that all the establishments which have common balance sheet and profit and loss be described as one establishment unless divided into two or more CBUs by the application of section 54 of the Ordinance. The "unity and strength" of workers is the philosophy behind insertion of section 54 of the Ordinance so that the unions should have sufficient membership that may negotiate with the management on strong footing for resolving 'of industrial dispute. According to the learned counsel for the Bank the strength of, the workers has been reduced which in turn reduced the membership of the unions functioning in the establishment. Obviously the strength of the CBA unions has been reduced with the reduction of their members. In order to give sizeable strength and respectful position to the union learned counsel argued that it would be appropriate to accept the reference or declare two CBUs as under:--
(i) Sindh and Balochistan (one CBU).
(ii) Punjab and N.-W.F.P. (one CBU).
' He further supported his above stance by submitting that proximity of distance, culture and communication are also the compelling factors for the declaration of above two CBUs. It will satisfy the respondent unions as the communication, general convenience, proximity and culture would make it workable for them.
9. On the other hand the learned counsel for the respondents came up with the proposal for declaring four CBUs in the following manner:--
(i) Sindh CBU (ii) Balochistan CBU (iii) Punjab and Islamabad CBU (iv) N.-W.F.P. CBU.
' The learned counsel for the respondents argued that the above arrangements have been adopted for narrowing the dispute involved in the reference. It would not be out of place to mention here that section 54 of IRO, 2002 lays down the following ingredients essential for declaring CBU and CBUs:--
(i) Distribution of workers.
(ii) Existing boundaries of the components of the establishment or group of establishments.
(iii) Facilities of communication.
(iv) General Convenience.
(v) Sameness or similarity of economic activities.
(vi) Other cognate factors.
10. I feel force in the arguments of the learned counsel for the management with the proposal of two CBUs where trade unions flourish having no shortcoming due to their small stature. I must appreciate the contention of learned counsel of applicant bank that definition of establishment has drastically been changed. The definition of Establishment as lays down in section 2(xi) of the Ordinance is reproduced below:-- "establishment" means any office, firm, factory, society, undertaking, company, shop, premises or enterprise which employs workmen directly or through a contractor for the purposes of carrying on any business or industry and includes all its departments and branches, whether situated in the same place or in different places having a common balance sheet and profit and loss account and, except in section 54, includes a collective bargaining unit, if any, constituted under that section in any establishment."
' From the perusal of above provision of law it transpires that the legislature has made one establishment with its branches having common balance sheet and profit and loss account as one establishment. However, these conditions can be altered by the application of section 54 of the Ordinance and an establishment can be declared into two or more CBUs. Without having common balance sheet and profit and loss account if otherwise just, feasible and satisfy the need of workers as well as suitable for promotion of industrial peace.
11. The two CBUs are suggested by the management above would be sizeable enough having sufficient number of Workers which would provide not only strength to the workers in these two CBUs but also respectable status to the trade unions. The perusal of documents placed on record shows that there are about 1762 workers employed in the present 8 Regions in the following break- up.
(i) Faisalabad Region190(ii) Lahore Region 270
(iii) Islamabad Region205(iv) Multan Region 128
(v) Sialkot Region 69(vi) Hyderabad Region238
(vii) Karachi Region285(viii) Peshawar Region202 (ix)Quetta Region 22(x) Commercial Banking7
(xi) Head Office 156
12. It is worthy to note that only 22 workers are employed in Quetta Region. Such number of workers scattered throughout Balochistan are unable to run healthy unionism. Reportedly, two trade unions namely (1) United Bank Employees Union Quetta and (2) United Bank Employees Union Turbat Zone were registered in the years 27-4-1971 and 3-12-1986 respectively but they are inactive. Similarly out of 35 trade unions only few unions are interested in the outcome of this case and majority are least concerned. The total workers in Punjab and N.-W.F.P. Are 1064 and in Sindh and Balochistan are 698.
Although the number of workers in Punjab and N.-W.F.P. Are little greater but workers at the Head Office Karachi have some natural edge over workers employed in the rest of the establishment.
13. Further the workers posted at Peshawar, Swat, D.I. Khan Attock, Islamabad, Multan and Lahore would easily make communication for redressal of their grievances. Similarly Quetta, Karachi and Sukkur would have the same facilities for grouping together to raise charter of demands with sufficient force at their backing. Further there is general convenience and similarity of economic activity in the above two CBUs. Similarly culture and proximity in Sindh and Balochistan cannot be denied while such factors are also available in the Provinces of Punjab and N.-W.F.P.
14. It is also brought to my notice that UBL Employees Federation has taken part in the negotiation on behalf of the affiliated trade unions which practically tantamount to rough course of joint action by the trade unions in resolving their disputes with the management. It is pertinent to mention here that the management has refused to negotiate with the Federation on the .Ground that Federation is not a CBA and cannot negotiate with the management under the law. It shows that practically the respondent unions resolve their dispute through Federation. It leads to the conclusion that the CBA union individually has no sufficient backing to compel the management for acceptance of their demands. Thus there is deadlock in the negotiation process. It would be just and feasible instead of non CBA Federation negotiating on behalf of the CBA Unions a sizeable CBU or CBUs be declared.
15. Last but not the least as stated above that trade unions registered with Labour Department, Balochistan are non-functional as reported by the RTU Balochistan. In such circumstances two CBUs have become more important so that the workers employed in Quetta Region may be grouped with other workers in separate CBU where their interests could be guarded in a better manner.
16. I am also mindful of the fact that it is the statutory duty of the NIRC to promote industry-wise trade unions and federation at the national level. In this regard section 49(4)(a)(b) of the Ordinance is reproduced below:---
(a) adjudicate and determine an industrial dispute to which an industrywise trade union or a federation of such trade unions is a party and any other industrial dispute which, in the opinion of the Federal Government, is of national importance and is referred to it by that Government;
(b) register industry-wise trade unions, federations of such trade unions and federations at the national level and carry out ratings of the trade unions and federations registered by it in terms of their standing and representative character.
17. Keeping in view above discussion, I, therefore, declare and certify all the establishments of UBL situated in the Province of Sindh and Balochistan as one CBU and Provinces of Punjab, N.-W.F.P. And Federal Capital Territory the other CBU and direct all the registered trade unions registered with the Provincial Registrars or with the NIRC to amend their constitution through opening their membership to the workers employed in the respective CBUs within one month failing which they would be deemed to be non-existent. This decision will remain in force for a period of five years.