' MIAN FASIH-UL- MULK, J--- The petitioners in this Revision Petition are the office-bearers of Daudsons Industry and Armoury Employees and Labour Union, Peshawar, who applied to the Registrar of Trade Unions, Peshawar for registration of their workman Trade Union but the same was rejected. They filed appeal before the Labour Court but the same was also dismissed vide impugned judgment dated 18-7-2009 on the ground that the Industry being exclusively connected with the Armed Forces of Pakistan including Ministry of Defence falls within the definition of the words "in any installations or services exclusively connected with the Armed Forces of Pakistan including Ministry of Defence lines of the Railways" as used in clause (b) of subsection (4) of section 1 of the Industrial Relations Ordinance; hence the instant revision petition.
2. I have heard arguments of learned counsel for the parties and have also gone through the record.
3. Admittedly, Daudsons and Armoury is an Industry in the private sector, which sells weapons and ammunition to the public including Army organizations. The sales tax vouchers appended with the revision petition further indicates that the industry is selling their products to the individual public as well as Government organizations. It is neither under the control of Federal or Provincial Government nor is carried on under its authority nor having any statutory rules of service.
4. Section 1, subsection (4) of the Industrial Relations Ordinance, 2002 provides that the Ordinance shall apply to all persons employed in any establishment or group of establishments or industry except those employed (a) in the Police or any of the Defence Services of Pakistan; (b) in any installations or services exclusively connected with the Armed Forces of Pakistan including Ministry of Defence lines of the Railways; etc. As per definition clause (xvii) of section 2, "industry" means any business, trade, manufacture, calling, service, occupation or employment engaged in any organized economic activity of producing goods or services for sale, excluding those set-up exclusively for charitable purposes, operating, through public or private donations where "charitable purpose" includes provision of education, medical care, emergency relief and other needs of the poor and indigent. The phrase 'in any installations or services' used in subsection (4) of section 1 cannot oust the workers of the Industry from the definition of workers as well as the entity as an Industry under the Labour Laws. There is nothing on record that the Company while dealing with the Armed Forces has been kept out of the market for the sale of its products.
5. The International Labour Organization has had occasion to consider freedom of association for labour as a primary right and collective bargaining followed by strikes, if necessary, as a derivative right. What partnership can exist between the company and Board of Directors on one hand and the menial staff employed to sweep floors on the other? What direct and essential nexus is there between such employees and production? This proves that what must be established is the existence of an industry viewed from the angle of what the employer is doing and if the definition from the angle of the employer's occupation is satisfied, all who render service and fall within the definition of workman come within the fold of industry irrespective of what they do. Pakistan is the signatory of International Labour Organization Convention Nos.87 and 98 and as per item 13 of the Federal legislative list, the parliament has the power to legislate on labour issues. Unions are meant to be democratic institutions working for the betterment of workers and indirectly for society as a whole. Trade unions are legal entities. The Constitution of Pakistan, ILO Conventions and UN Declarations all allow workers the right to form their associations and unions. Within the existing formal sector, unions have a certain degree of collective bargaining power and have been able' to protect the wages and conditions of workers. Permanent workers also have a large degree of job security. Many traditional labour problems exist outside the formal sector. The use of child labour is common in the informal sector. The right to freedom of association and the right to organize had been secured and guaranteed under the Constitution. The August Supreme Court of Pakistan have exhaustively interpreted the provisions of section 1(4)(b) of the Ordinance in so many cases, particularly in the case of Army Welfare Sugar Mills Worker's Union v. Army Wlfare Sugar Mills (2009 PLC 132) wherein it was held that:--- "For claiming an exemption under section 1(4) a functional connection with the Armed Forces as to activities performed in the establishment where a person is employed must be established. At the same time, the functions of the Armed Forces are clearly spelled out in Article 245 of the Constitution and, therefore, only an installation which is directly connected with such function i,e, defence of Pakistan against external aggression or to act in aid of civil power if called upon to do so must be shown. We are, therefore, clearly of the opinion that the mill in question is neither rendering services exclusively to the Armed Forces nor can it be treated as an installation of such force."
The Hon'hle Lahore High Court in the case of Fauji Sugar Mills v. Mehmood Ahmed (2006 PLC 630) has also held that:--- "Plea raised by employer was that Fauji Sugar Mills being an organization connected with Armed Forces, did not fall within the purview of provisions of Industrial Relations Ordinance, 2002, therefore, grievance petitions were not maintainable- Validity-Bare reading of second proviso to S.1(4) of industrial Relations Ordinance, 2002, showed that provisions of West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, did not apply to industrial or commercial establishment carried by or under the authority of Federal or Provincial Government, where statutory rules of service etc. Were enforced Appellant establishment was not carried on by or under the authority of Federal or Provincial Government and there were no statutory rules of service, therefore, provisions of West Pakistan Industrial and Commercial Employment (Standing Order) Ordinance, 1968, were applicable tO the establishment -Grievance petitions were maintainable before Labour Court in circumstances."
As stated above, Daudsons Armoury is not carried on by or under the authority of Federal or Provincial Government and there is no statutory rules of service, therefore, provisions of Industrial Relations Ordinance, 2002 or for that matter provisions of West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 are applicable to the establishment and the learned Presiding Officer, Labour Court has wrongly denied the claim of petitioners on such ground.
6. For the reasons stated above, this revision petition is accepted, the impugned judgment dated 18-7-2009 of the Labour Court is set aside and the respondent is directed to issue registration certificate to the petitioners as prayed for.